Navigating your way through the unknowns of bidding in the Middle East.

If you would like to take advantage of a relatively buoyant Middle East market or if you have tried bidding in the Gulf in the past and been burnt, read on for how best to apply best practice in a dynamic, emerging marketplace.
As austerity measures and budget cuts bite deep into Western markets, the Middle East remains relatively buoyant with opportunities abounding for those interested in Defence, Oil and Gas, Infrastructure, Construction, Supply and Travel. The Gulf Cooperation Council (GCC) is made up of the Kingdom of Saudi Arabia (KSA), Kuwait, Qatar, Bahrain, Oman and the United Arab Emirates which is often better known for its major cities, Dubai and Abu Dhabi. The GCC has grown fast and furiously in the past decade as the region tries to carve a niche out for itself as a global hub for business and travel. Many organisations have taken advantage of this and won significant business and established offices locally. Despite the downturn, there are still numerous bidding opportunities. The big difference since the downturn is that for the first time, companies have to aggressively compete to win. So, the question is how to bid effectively for Middle East contracts?

Salaam Aleykum. Welcome to Bidding in the Middle East.

The bidding environment in the Middle East is characterized by particular rules of engagement: Traditional Marketplace The customer is known and there may be opportunities to meet with the customer. The Middle East The actual decision maker may never be known. Instead you may have to deal with advisors and influencers. Stakeholder relationships are of a professional Familial relationships take precedence and may nature. be further complicated by historical or tribal factors. The competitive environment is known or can be Competitors can appear overnight with little or assumed. no apparent credibility yet winning business. Procurement and bidding processes are Processes may be poorly defined or nonestablished. existent. Severe penalties for breaching the rules. The rules change to suit the situation. Submission times are challenging but do-able. Submission times are extremely aggressive and unrealistic. Figure 1: There is a Gulf between Us pardon the pun! The Middle East is an immature business environment and many of the differences between bidding in a more established market and a new one are apparent. Whilst this presents challenges it also presents opportunities to introduce and define best practice and share knowledge for the benefit of all.

Shall we go to war? Can we infiltrate the tribe?

Given this background, the Bid/No Bid process needs to include questions that may not usually be considered so that a conscious and informed decision can be taken. 1. What family connections are at play? 2. What is the local political situation? Is it being governed by the Diwan, (the local parliament) or the majlis (informal meeting place for coffee and chat amongst men)? 3. Do we need an agent? These are individuals who have historical associations with the region or stakeholder community. 4. Who is the decision maker? Decision makers may be very much in the background particularly if they are a member of the ruling family. 5. Are incentives involved? This is a contentious point but I wouldnt have done a good job in this article if I didnt mention it. There is, as there is everywhere, corruption and bribery present in the Middle East. If this is going to be a factor, better to find out quickly so you can avoid any issues.

What bad things will happen to us if we dont bid?

This is a question that most of us will be familiar with as a part of our understanding of the risk situation within our bid. In the Middle East, this question takes on more significance. Arabic peoples dont like giving or receiving bad news. Some cultures find it very difficult to say no. Companies may be forced to bid: You wont win but we will lose face if you dont bid. If you ever want to work with us again, you will bid for this, for example. A no bid may be taken personally.

Understanding the risk in taking a no bid decision or carefully selecting how you choose to deliver bad news is important and should form part of the decision making process. You may decide to make a personal visit to the procurement team, or ask the most senior person in your organization to write a personal letter. It may be that you decide as a result that you will bid but give the proposal a lower priority than others.

It IS who you know and not WHAT you know.

We all know that gathering intelligence is important wherever you are in the world, not just the Middle East. Culturally, forming relationships is very important and business can only be discussed once trust has been established. For this reason, networking in the Gulf is VITAL. For example, over 70% of my own business has come through networking events and contacts. In the West, we are very quick to talk about business. Time is precious and our clients may not appreciate us wasting their time or talking in an unfocused manner. The exact opposite is true over here. DONT be in a rush to talk business: expect to talk family and local chit chat first. DONT interrogate. Question gently and slowly. DO expect lots of emotion and personal involvement.

DONT underestimate the skill level of the individual if they are slow to come to the business part. A good example of this last point is often seen with procurement teams. Solicitation documents are often of dire quality which can lead to people making assumptions that procurement teams are not well qualified to do their jobs. Actually nothing could be further than the truth. Most of the individuals in procurement have grown up in barter economies and they are very comfortable negotiating and cutting the deal.

Are you speaking my language?

Most Arabic people speak some level of English although language shouldnt be the only consideration when dealing with people from another culture. It is not uncommon to have numerous nationalities at a meeting. An example from a meeting I recently attended concerning a US Navy contract: American, British, Indian, Lebanese, Pakistani, Filipino, Hungarian, Kenyan and Jordanians were all in attendance! Different nationalities have different work ethics which may need to be considered on the bid plan. Religious demands are important and in particular it is helpful to have some understanding of the religious calendar for Muslims. For example, prayer times, Ramadan, Eid Al Fitr and Eid Al Adha. Body language can be much more animated than is seen in Western office spaces.

And finally the Top 10 Tips for Bidding in the Middle East.....
1. Consider getting the Executive Summary translated into Arabic this is a nice touch where you have an Arabic decision maker. 2. Research local networking groups: the US and British embassies both have vibrant groups; The International Womens Business Group is helpful if you are female as is Heels and Deals. 3. Women are generally encouraged in business in the Middle East. There may be some issues operating in Saudi Arabia but for the most part being female is not an issue. Similarly conservative dress is wise but covering up is not necessary. 4. A little bit of Arabic goes a long way: learning to say hello and thank you in Arabic will always go down well: Salaam Aleykum and Shukran! 5. Gulf communities respond very well to opportunities for their own improvement. They will welcome the opportunity to learn from you. 6. Use colors innovatively in your proposal. Arabic people like vibrant, jewel like colors, emerald green, ruby red and regal purple for example. 7. Dont underestimate the ability to negotiate. Most people have grown up in an environment where haggling is the norm. Typically Middle Eastern people are much more comfortable haggling than Westerners. 8. Business travel is generally safe. Check out information from the local embassy website on safe travel. 9. There are great opportunities to be innovative and to test concepts and ideas in such a dynamic market place. 10. Contact me! Having been here for over 5 years I am always happy to meet for a coffee and chat about bidding in the Middle East.