The Untold Realities of Business Development in Saudi Arabia: Why Most Fail Without Understanding the Unspoken Rules

Saudi Arabia’s booming economy is a siren call to businesses worldwide, offering a wealth of opportunities in one of the most dynamic markets in the world. But for all the success stories, there are just as many businesses that fall flat. The reason? They don’t understand the unwritten rules of business development in the kingdom.

Saudi Arabia is not a typical market within the Gulf Cooperation Council (GCC). It operates on a different frequency, where deals are not struck through hard-selling tactics or aggressive pitches. Instead, success in Saudi Arabia comes from building trust, exercising patience, and positioning your business strategically. Those who don’t take the time to understand these nuances often find themselves sidelined, despite having the best product or service.

One of the biggest misconceptions foreign businesses have when entering the Saudi market is the importance of relationships. Networking here goes beyond exchanging business cards or connecting via LinkedIn. It’s about showing up, physically and regularly. If you want to build credibility and close deals, you have to be present—not just for a few days, but consistently. In Saudi Arabia, trust is paramount, and trust is built through repeated, face-to-face interactions. Deals are forged in intimate settings like dinners and coffee meetings, not through cold calls or emails. If you’re not here on the ground frequently, don’t expect to be taken seriously.

The pace of decision-making in Saudi Arabia also follows its own rhythm—slow, until it isn’t. This is particularly true when dealing with family-run businesses or government entities. Often, months may pass with little to no progress, and it can feel like you’re going nowhere. But then, out of the blue, everything can change, and you may be asked to move swiftly on a deal or project. This sudden urgency can throw many companies off balance. Being able to maintain patience while staying agile enough to execute quickly when the time comes is crucial for success here.

Another crucial, yet often overlooked, aspect of doing business in Saudi Arabia is Saudization. Many foreign companies view it as a mere compliance requirement—a box to tick to meet legal obligations. But in reality, Saudization offers businesses a competitive edge. Hiring local talent isn’t just about meeting quotas; it’s about tapping into insider knowledge, gaining a stronger network, and establishing credibility. The best companies here understand that a diverse, local workforce is invaluable, and they use it to their advantage in ways that others fail to see.

What many businesses fail to realize is that in Saudi Arabia, the government isn’t just a regulator; it’s also a competitor. Unlike markets where the government simply oversees business activities, Saudi Arabia’s government is a direct player in many sectors. It actively participates in business ventures and initiatives, which means that for foreign companies looking to enter the market, aligning with Saudi Arabia’s Vision 2030 is non-negotiable. If your business doesn’t fit within the broader national development strategy, your chances of success are slim. Those who align their offerings with the kingdom’s transformation agenda have a significant advantage.

And then there’s the critical role of local partnerships. Foreign businesses often underestimate just how vital it is to partner with a well-connected local entity. Some believe they can make it on their own, but that’s a dangerous misstep. A local partner isn’t merely a liaison; they are your access point to the market. They can open doors, vouch for your business, and help you navigate the complexities of the Saudi market. Without the right partner, your chances of succeeding in Saudi Arabia are drastically reduced.

Saudi Arabia may be open to investment, but it’s not an easy market to crack. The businesses that succeed are the ones who recognize the importance of relationships and are willing to invest the time to build them. They understand the local culture, comply with Saudization policies not just to check boxes, but to strategically integrate themselves into the market. They position themselves as part of Saudi Arabia’s Vision 2030 and ensure that they have the right local partners to help them thrive. These businesses know that the market is not just about closing transactions, but about taking the time to build lasting connections and positioning their brand as a trusted and integral player in the kingdom’s ongoing transformation.

If you don’t understand these unspoken rules, you’ll quickly find yourself stuck in an endless loop of unfruitful meetings and missed opportunities. But those who get it—the ones who invest in relationships, exercise patience, and align with the national vision—will find themselves at the forefront of one of the world’s most exciting economies.