Qatar’s Business Culture
According to Cavusgil et al., culture refers to the set of norms, values, beliefs, ideas, and customs, which an individual abides by. People are socialized into culture. Thus, venturing into different cultures without adequate preparation can be just as dangerous as a ship maneuvering icy waters without charts, hoping to be lucky enough to avoid hitting an iceberg. Companies who seek to internationalize must thoroughly understand the host country’s laws, social, and business practices. In the case of Qatar, foreigners are expected to be respectful of the rules associated with their Islamic faith when in the presence of Qataris. This expectation can be view as acculturation; wherein the foreigner adjusts and adapts to …show more content…
It is important to note that, the official language of Qatar is Arabic, however, business is conducted in English. This is highly due to the fact that four-fifths of their workforce is comprised of expatriates. Once the foreign party arrives, they are to shake the hands of the eldest Qatari in the room, addressing them by their professional title (ex. Haji or Sheikh), and presenting an elaborate gift. Traditional perfume is highly valued as a gift by Arabic men. However, one should avoid giving anything containing alcohol or made of pigskin. Due to their propensity to avoid risk, negotiations are conducted very slowly. Foreign firms are required to bring a Qatari to represent them at these meetings. During these negotiations the Qataris tend to speak at length in terms of business and personal dealings; and negotiations may be interrupted by family and friends. This collectivistic society views family as “everything.” Therefore, it is important to remain patient and courteous at all times; and inquire about their families’ well-being in order to gain their respect (“Doing Business in Qatar,” n.d.). A level of trust and reciprocity over time must be built between the Qataris and the foreign firm in order to close the deal. Verbal promises are viewed as more binding than written contracts. However, these written contract are to be prepared in …show more content…
According to The World Bank (n.d.), “Foreign direct investment is a category of cross-border investment associated with a resident in one economy having control or a significant degree of influence on the management of an enterprise that is resident in another economy.” In 2014 the flows of FDI into Qatar reached more than USD 1,040 million Fig. 1 (“Qatar Foreign Investment,” 2016). Qatar is exceptionally open to FDI, as its objective is to become a world-class leader in terms of its business environment for foreign direct investment. Over the past several years, this has become a reality by way of improvements made to the country’s infrastructure and the creation of favorable foreign investment
According to Cavusgil et al., culture refers to the set of norms, values, beliefs, ideas, and customs, which an individual abides by. People are socialized into culture. Thus, venturing into different cultures without adequate preparation can be just as dangerous as a ship maneuvering icy waters without charts, hoping to be lucky enough to avoid hitting an iceberg. Companies who seek to internationalize must thoroughly understand the host country’s laws, social, and business practices. In the case of Qatar, foreigners are expected to be respectful of the rules associated with their Islamic faith when in the presence of Qataris. This expectation can be view as acculturation; wherein the foreigner adjusts and adapts to …show more content…
It is important to note that, the official language of Qatar is Arabic, however, business is conducted in English. This is highly due to the fact that four-fifths of their workforce is comprised of expatriates. Once the foreign party arrives, they are to shake the hands of the eldest Qatari in the room, addressing them by their professional title (ex. Haji or Sheikh), and presenting an elaborate gift. Traditional perfume is highly valued as a gift by Arabic men. However, one should avoid giving anything containing alcohol or made of pigskin. Due to their propensity to avoid risk, negotiations are conducted very slowly. Foreign firms are required to bring a Qatari to represent them at these meetings. During these negotiations the Qataris tend to speak at length in terms of business and personal dealings; and negotiations may be interrupted by family and friends. This collectivistic society views family as “everything.” Therefore, it is important to remain patient and courteous at all times; and inquire about their families’ well-being in order to gain their respect (“Doing Business in Qatar,” n.d.). A level of trust and reciprocity over time must be built between the Qataris and the foreign firm in order to close the deal. Verbal promises are viewed as more binding than written contracts. However, these written contract are to be prepared in …show more content…
According to The World Bank (n.d.), “Foreign direct investment is a category of cross-border investment associated with a resident in one economy having control or a significant degree of influence on the management of an enterprise that is resident in another economy.” In 2014 the flows of FDI into Qatar reached more than USD 1,040 million Fig. 1 (“Qatar Foreign Investment,” 2016). Qatar is exceptionally open to FDI, as its objective is to become a world-class leader in terms of its business environment for foreign direct investment. Over the past several years, this has become a reality by way of improvements made to the country’s infrastructure and the creation of favorable foreign investment