Since I started assisting international companies in Saudi, I have witnessed numerous companies failing there, if not hundreds. The majority of them made one of the following five mistakes, which jeopardized their chances of doing business in Saudi. To be honest, I made some of these mistakes myself in the early days of my ventures. Therefore, here are five pitfalls you should avoid to succeed in the Saudi market as an international B2B company:
Chasing meetings with clients without proper preparation: knowing their pain points, demands, and expectations. Most companies also come unprepared without researching their competitors' offerings. Also, it could be useful, before meeting the “big fish” clients to seek a meeting with someone who knows them well, or meet a few potential clients with less importance.
Offering the same product as they do on their core markets: In 99% of cases, they are likely to fail because every product or service, whether from a global brand or a smaller international company, typically has specific requirements for its use on the ground. Companies of all sizes must adapt their specifications, terms and conditions, pricing, and other elements of their offerings to a new market.
Relying too much on local partners: They expect that local partners who have impressed them with their connections and hospitality will make every effort to bring them new clients. It's crucial to remember that hospitality is merely a tradition and may not reflect genuine motivation. Partners' priorities may change over time, causing them to focus on existing revenue streams rather than potential opportunities. Companies should not rely solely on their local partners for client acquisition but mainly use them for contracting purposes while leaving room to approach and pitch new clients independently.
Selecting a wrong partner: Very often, companies choose the wrong partner. Influenced by someone's family name, wealth, or hospitality, they tend to overlook their expertise, network, and motivation to dedicate time to their product. Typically, wealthy individuals have multiple revenue streams and little incentive to go the extra mile for a new opportunity.
Granting too much exclusivity: Exclusivity terms are the most critical aspect of partnership contracts that every local partner in Saudi Arabia demands from their foreign counterpart. Many companies have fallen into a trap by giving up too much exclusivity for unjustifiably long periods. After showing some activity at the beginning of the collaboration, many of their partners have vanished from their radars, leaving them with no chance to terminate the contract or sign with another partner. For such companies, partnering with Saudi partners effectively closed the doors to the Saudi market forever.
