eFinancialCareers Q&A: The key differences between Arabs and Westerners that bankers absolutely must be aware of

If you’re applying for jobs in the UAE, doing business in the UAE, or simply meeting clients and colleagues from the UAE, then be aware: there is potential for significant cultural misunderstanding.

Jeremy Williams, a former British diplomat and author on culture in the Middle East highlights the dangers.

What are the 6 main mistakes Western bankers make when dealing with Arabs?

• Using the word ‘Arab’ in a homogenous sense:  you need to understand the specific country (even city) of your client.
• Being condescending and/or impatient.
• Not proposing undertakings that involve mutual participation - ie just asking for money.
• Not understanding the meaning and impact of the word ‘riba’ (interest).
• Not studying the acceptable Islamic banking practices of Ijara, Ijara wa’ iktina, Musharaka, Murabaha and  Mudaraba which form the basis of many banking products.
• Not recognising that there are vast Islamic banking opportunities, especially in developing products already approved under Islam.

What are the 6 main mistakes Arabs make when dealing with Westerners (and Western bankers)?

• Being unaware that many westerners (and others) see ‘Arabs’ as a single group of people
• Not understanding that some westerners may (out of ignorance) offer a banking product first and seek Islamic endorsement afterwards.
• Missing a meeting without sending a text or making a call first to cancel or reschedule. For the westerner this is probably THE most consistently annoying aspect of all business in the Middle East.
• Being too polite – ie. not speaking clearly in terms of whether or not an offer is acceptable.
• Not realising that most westerners will find it hard to understand the power and importance of ‘wasta’ in business in the Middle East.
• Not fully understanding the increasing power of laws in the West to put people in jail for bribery at all levels.

Do you have any examples of deals that have gone wrong or business relationships that have come to an end because of these cultural differences?

Coming down in price too much. “So you started me at $30 million and finally agreed my counter offer of $13 million? What sort of fool do you think I am that I could be started at $30 million?”  The moral is: always provide some sort of doorway for your client not to lose face.

Are there cultural variations across the UAE that Western bankers should be aware of?

There are differences of business style and capacity between the emirates of Abu Dhabi and Dubai. Treat all seven emirates that form the UAE as different clients.

Dubai, for example, has a strong trading and entrepreneurial background and tends to be fast paced.Abu Dhabiis less rushed.

In terms of expected behaviour and clothing there are few differences, although Sharjah will probably expect more demure clothing thanDubai. A good rule: dress well and behave modestly for all business throughout the UAE, and in the wider Muslim World.

If you're going to do one thing when you meet an Arabic banker, what should it be?

Have a good offer that respects Islam, and make time to get to know him or her well.

If Arabic bankers are going to do one thing when they meet Western clients, what should it be?

Be on time. Come to the point a little earlier than with Arab clients.

Jeremy Williams’ book ‘Don’t They Know It’s Friday? (Motivate Publishing Dubai - A cross-cultural guide to life and business with Gulf Arabs) is in its second edition. More information @ http//www.handshaikh.com