In doing business with the arabs, it will depend a lot on which country you want to do business. Arabs are known for hundred of years as trustworthy and keeping to their promise. That can not be apply to todays scenario. After a while, these arabs has been influenced by outsiders and they are now even worse because more and more of them are dealing with the thiefs and daylight robbers. So they have to change in order not to be eaten alive. But as bad as they are now, they still can be trusted and they still hold to their promises.

As usual, the best rule to deal with them is still receive payment upon delivery. Most of the arabs that I have dealt with, in fact hundreds of them, they do have money but they will hold to their money by asking us to give them credit payment term. They will ask for 90 days which is of course NO WAY we can give them. Be firm with your term. They will always come to you, if not they will never ask for price quotation in the first place from you. Normally when we negotiate with them, we have to quote them higher price because they will always ask for discount. The first transaction is the worst that you will face. But after that first, you just have to sit at your couch and receiving orders from them. They based their business dealing on trusts. Once they trust you, their balls is already in your hand.

In most of GCC countries, it’s very hard for you to meet the arabs owners or to deal with them directly. Arabs in these countries are known as rent collectors. Most of them are very rich and comfortable with what they have. Their country has been blessed with oil. So, they will never try to look for more. Most companies in GCC countries are run by the expatriates from India, Pakistan and neigbouring arabs countries. So, the chances to deal with the workers are high and please don’t be surprise if some of the companies is actually owned by the expatriates. They form partnership with local arabs to start business. That is why I said most arabs are rent collectors. How lucky they are…

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