International trade is the key to unlocking a country’s economy. Kenya is the largest economy in East and Central Africa, and this economic muscle is borne out of the entrepreneurial nature of Kenyans. Recently, there has been a sharp focus on not only exporting migrant labour to the Gulf but also increasing trade volumes between Kenya and the countries in the Gulf Cooperation Council. Thus, Kenya’s trade with Saudi Arabia is expanding fast.
However, one important issue that Kenyan businesses may not be paying attention
to is the key role cultural intelligence plays in doing business in other
cultures, especially in countries with closed and conservative cultures.
Looking at the trade between Kenya and Saudi Arabia, the numbers show why this matters. For example, in 2024, according to figures from UN Comtrade and the Kenya National Bureau of Statistics, Saudi Arabia imported about $171 million (about Sh22 billion) worth of Kenyan goods, while Kenya imported more than $1 billion (Sh129 trillion) from Saudi Arabia.
That trade imbalance indicates that Kenya is buying much more than it sells. If Kenyan companies with the support of the government, want to increase export to the Gulf and Saudi Arabia in particular, they must invest not only in products and strategies, but in learning the culture.
Doing business in the Arab countries is not just about paperwork and contracts, but more importantly, it is about building relationships. Unsurprisingly, a deal may often begin with building trust over a cup of coffee before it ever gets to the boardroom table.
In this part of the world, respect for traditions, patience in negotiations, cultural intelligence and awareness of hierarchy are not just small details but are a means of building credibility.
For instance, in Saudi Arabia, the day is punctuated by prayer times and businesses that ignore prayer times, schedule meetings during Ramadan afternoons, or rush negotiations risk being seen as disrespectful.
Equally important within the cultural context is the language of the host country. Speaking the Arabic language or even trying to speak it by mastering a few words can, for example, open doors.
In addition, observing modest etiquette by demonstrating respect for Islamic practices can send a powerful signal of goodwill. In that token, for the Kenyan businesses that are used to community-driven interactions, this cultural bridge may not be so strange, but simply needs to be extended to a new setting.
Built on its Vision 2030, what is at stake is not just etiquette but access, too. Among other sectors, from construction and health to ICT and renewable energy, Saudi Arabia’s market is growing and expanding across sectors. For Kenyan businesses that are ready to invest, there are extensive opportunities.
However, firms that adapt – that understand
decision-making in Saudi Arabia is hierarchical, that flexibility is valued,
may achieve success and that partnership grows out of respect.
Last year there was a Kenyan trade mission in Riyadh where 16 agreements were signed, worth hundreds of millions of dollars. This is an indicator that there is an appetite for doing business in Saudi Arabia’s business ecosystem. But if those agreements are to turn into long-term businesses, cultural learning must be treated as seriously as financial planning.
The writer is a consultant at OXUS Management Consultants and a lecturer
