Effect Of Custom And Traditions In Arab Business

Setting up a successful Arab business is not difficult but before starting with the job one must have enough knowledge as to the rich culture they follow. Arab countries have a very old and rich culture which can be traced back over many centuries. At present Arab countries are viewed as very powerful partners and equals in business by most of the other nations. One of the main reasons for this is the rich business culture they have and the geographical location of the Arab nations. The Arab nations are placed at the cross roads of three continents giving them an easy access by air and sea.

Legal systems followed by all the Arab nations are very different from that of other countries like Europe, USA etc. The coded laws in Arab nations are still in their early stages. Even though agreements have been made and signed with the officials regarding termination of business in certain conditions it is very difficult to complete the process as customs and traditions are given more importance than written law. Understanding the culture and traditions is an important step in establishing a business. The right form of communication and gestures is a major step to establish friendship with the Arab nationals.

Placing the palm of right hand on the chest after shaking the hand is a sign of thanks, bowing the head slightly shows respect, touching each other's nose during greeting is a sign of friendship. Eating with right hand is a sign of cleanliness and leaving food in the plate after eating shows abundance. Do not ask for liquor unless the hosts provides them as this is against heir holy Quran. Pig meat and ham are also against their religion; also keep pets like dogs way from them. Pointing finger at someone is considered as a threat so refrain from such acts. Most of the communication gestures are necessary if a person is planning to establish a friendly relation with the Arab nation and do Arab business there.

Establishing an Arab business is not easy it requires licenses from the government officials in charge based on the business which a person is trying to start. In Business hubs like Dubai there are free zones where establishing business is very easy but in other places only Arab national can set up the business. In such cases the license will be issued in the Arab nationals name and he will be given a percentage of the profit every year according to the agreement. During the advertisement campaign of the business make sure that it is not something in contradiction to their culture and traditions.

Many nations are coming forward seeking doing business here. Due to the rich culture it protects and nurtures it is also one of the first choice for tourists. It is well connected by air and sea for all travel and transport facilities. Establishing an Arab business can be very much profitable but before setting up the business it is necessary that one understands the financial laws and rules which are to be followed and the agreement has to be made after taking legal consultation from some experienced lawyers in this field.