Read Closing Case: Culture and Business in Saudi Arabia and answer the following questions: Summary The closing case explores the roots of Saudi Arabia’s culture and the influence of its culture on the business environment. Saudi Arabia’s culture is directly influenced by Islamic scholar, Ibn Abd-al-Wahhab, and his commitment to a strict adherence to the principles of Islam, together with ancient Bedouin beliefs. While current Crown Prince Mohammed bin Salman, has relaxed some Saudi traditions, especially as they relate to women, the country continues to be dominated by its culture. For companies operating in Saudi Arabia, the Saudi culture means that it is important to take a relaxed attitude toward time, recognize the importance of building trust and meeting face-to-face, and understand the role of loyalty in business decisions. Discussion of the case can revolve around the following questions.
1. What forces shaped modern Saudi culture? How similar or different are these forces from those that shaped the culture of Western nations?
2. What kinds of misunderstandings are likely to arise between an American company and a Saudi enterprise, neither of which has experience dealing with the other?
3. If you were in a position to advise a Western company that was considering doing business in Saudi Arabia for the first time, what would your advice be?
4. Since 2017, Crown Prince Mohammed bin Salman, the effective ruler of the country, has introduced a series of changes aimed at modernizing the country. These include relaxing many of the traditional norms based on conservative Islam. Why do you think he is doing this? What are the risks here for his government? Are there risks for Western businesses operating in the country?