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Saudi Arabia: "By invitation only '

The medical sector of Saudi Arabia is large and very modern. The severe reputation of the company however makes that the companies don’t explore the opportunities.  It’s a shame, say 2 Dutch entrepreneurs: “I find the Saudi Arabian people very open.”

You can laugh with Saudi’s. Herman Vincent, of microscopes manufacturer FEI Company, regularly receives an e-mail with a cartoon of a Saudi business relation. ‘The newest seat belt,’ was written under an image showing the mouth of the female occupant, which is literally silenced by the belt.

You can call the anecdote a proof of the women unkindness in a land where women aren’t allowed to drive cars or are completely covered in black. Yet the cartoon says a lot about what is behind the façade of the closed country. Why does the belt silence the mouth of the woman? “Because the woman is the boss at home. That is what you hear when you get to know the men better.”, says Vincent. Like in the US, but different.

Many, very many things are different in Saudi Arabia, than in the rest of the world. Firstly, it is very difficult to ‘enter’. Saudi Arabia is an old-fashioned men’s club: ‘By invitation only’. “You must be invited by a company,” says Bart van der Meer of Endo Soft, a medical software producer.

“On the streets you have the feeling that you’re in the United States,” says Vincent. He compares it with a city like Phoenix: shiny glass buildings in a desert and heavy traffic on wide roads. “But something’s missing. There are no cafés and restaurants. Only shopping malls and restaurants. It is a remarkable purposeful society. “Obviously men and women are strictly separated. In the restaurants, who are still full at midnight, people eat a lot of spiced lam- and beef meat, often served with bread.”

Expat hierarchy
Everything different. Yet both men have no problem to move relaxed in the country. “I find my business partners very open people,” says Vincent. “Pleasing,” is the way Van der Meer describes the contact with his relations. “As long as you respect the laws and customs, there are no problems.” I never give women a hand, unless they do it first. Yes, that happens! Further more I avoid sensitive subjects such as religion and politics. However, that’s what I do in USA too. There’s no essential difference.”

In addition to that, the medical sector is mainly run by expatriates, like many parts of the economy. Pakistanis, Indians, Bangladeshi and Filipinos in the caring functions, western people in higher functions. Only the head of a department is always a Saudi. Van der Meer: “It is a multicultural community, who are wonder well functioning.” Western people are on top of the expat hierarchy for the Saudi’s. The hosts look down on the cheap Asian staff members, but also on the employees of Arabian origin.”

Saudi Arabia is changing. Very slowly, but it happens. There’s a debate on the man-woman partition. People look carefully to Dubai, who earns a lot of money on tourism. Tourists on Saudi beaches? Who knows, this will ever happen.

Medical market Saudi Arabia
The Saudi market for medical equipment and other supplies is great. Many hospitals and research facilities are built, the knowledge and the equipment is very modern. The budget for health care was 11.8 billion US dollars in 2008 and rises by about 10% each year.

People can do good business here, but the time that you could ask any price you liked is over, says Van der Meer. Saudi’s are tough negotiators, confirms Vincent, and they expect that of the other too. The notification ‘We are now partners’ is to be used with caution, because then the partner will ask for a discount.

Apart from that, the differences in cost awareness are high among the state hospitals and the private hospitals for the rich elite. As everywhere in the world. Private hospitals negotiate sharper and the purchasing department has a ‘heavier’ voice there. Normally, the doctors simply tell the purchasers what they would like to have.

The first contacts are therefore made with doctors. This happens mostly at fairs. That’s the way Endesoft did it too. A doctor was interested in their software and one thing led to another. Van der Meer: “Arab health in Dubai is the exhibition for the Middle East.”

Source: Buitenlandse Markten
Text: Arnoud Veilbrief
Date: 6 Oktober 2009
Remark: LEX posted only an abridged version of the article. 
 
 

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