Question:  We are in the final stages of negotiating with a Qatari firm. I am new to the Qatari market, but have done projects overseas before (but not in Qatar).  I have a list of questions and would like your office to guide me through the negotiation process.  I hope to travel to Qatar in a few weeks to finalize the contract.  Thank you very much.

1. What should a U.S. company expect when doing business in this part of the world? In other words, how is it different than doing business here in the U.S.?

• Observing the culture is important in Qatari business dealings. Things do not move quickly.
• Qataris normally gather in their Majlis (http://en.wikipedia.org/wiki/Majlis) to have coffee and discuss issues in a relaxed setting.
• Meetings are not easy to arrange, as businessmen frequently travel. Although Qatar has strong financial resources, there is a dearth of highly skilled labor.
• It is advisable to have all verbal agreement buttressed by written ones / contracts.
• Regarding methods of payment, local businesses prefer to deal on a Letter of Credit basis. Cash in advance is only used when there is enough trust and a long-lasting business relationship.
• Understand that opening an office can be an extremely documentary intensive process. Be prepared for plenty of certification, authentication and approval of documents.
• e-commerce is not widely practiced.

2. What are some of the main cultural differences U.S. companies should be aware of before visiting or doing business in a country in this region?

• Be prepared to drink plenty of tea, coffee, juices and water during business meetings, as they are generously offered to visitors.
• Know the geography of the region and do not confuse countries in the Gulf as this may be taken as an offense.
• Qatari businesspersons do not like to talk about business straight away. An icebreaker is always needed – i.e. talking about the country, the family, the studies, and anything that could kick-off the meeting.
• Qataris like to be flattered about their country, its development, its safety, its leadership. This is extremely important, especially if the US businessperson is meeting with a government official.
• Slow decision-making and less than perfect management of resources in public projects is the norm. Expect delays to occur.

3. What are some do's and don'ts U.S. companies should not engage into? For instance, this can be about religion, body language, questions or comments US companies should never bring up in their conversations with their new business partners.

• Click here to see our list of do's and don'ts.

4. Communication is said to be an obstacle when conducting business, however, what communication techniques you would share with a U.S. client to overcome communication barriers?

• Avoid using lots of idioms, unless you explain them, because they may be misinterpreted and misunderstood.
• Speak at a slower pace than normal.

5. How important is bargaining with new business partners in this region of the world? Do you have bargaining examples U.S. companies can use with potential clients?

• Local businessmen are old time traders, and therefore very shrewd negotiators. Leave yourself some room for price negotiations and discounts.
• Often times, local clients change the scope of work. That could be very beneficial to the US company as the variation could be priced at a different rate.
• Do never rely on the word of mouth. Everything should be documented. No verbal agreements.

6. What is the best approach to negotiating with companies in this region of the world? At the beginning stages of negotiations, how should a U.S. company enter their negotiations? For instance, how important is building a relationship based on value. Value meaning taking the time to understand and handle their new partner product or service needs or being a reliable and caring supplier.

• Build the trust, show support and be very responsive.
• Qatari value honesty and transparency with their counterparts.
• One of the keys to successful negotiation is tapping the right person. Even though you have the best price, product and service in the world, you have to have to interface with the right decision maker and contact.

7. At the beginning stages of negotiations, how important is quality and pricing of products and services?

• Qatar is a small country; people have perfect information; it is important to have competitive pricing and service.
• Generally, customers are very price sensitive, unless there are mega-projects where there is a huge risk at stake and deadlines need to be met because of political pressure to deliver on time and on benefit.

8. What about the negotiation process, for instance, is the negotiation a slow process, fast process and should they expect large groups of people in the meeting?

• The negotiation process will be driven by the complexity of the project or deal. Larger projects take time, if they are not driven by a sense of urgency at the macro level.
• For example, straightforward export transactions move at a quicker pace than mega projects.

9. What are some of the do's and don'ts U.S. companies should not engage into? This can be about religion, body language, questions or comments US companies should not mention, etc…

• Avoid discussions on US foreign policy in the region related to terrorism, religion, and public freedom.

10. How soon should the U.S. company begin discussing business with his new partner in this region of the world? In other words, is it rude to begin negotiations immediately or should they wait for their new partner to open negotiations first?

• Qatar is a relationship-based society, not a transaction based one. It is advisable to develop a rapport and then proceed with business discussions once a certain comfort level is attained on both sides.

11. Does this part of the world seek to build trust through written contractual agreements?

• Personal relationships combined with written contractual agreements are the superior combination. They are not mutually exclusive conditions to building trust. Both are necessary, and by themselves are not sufficient.

12. How important is follow-up when conducting business in this region of the world?

• Though electronic innovation is the trend nowadays, meetings and personal contact goes a long way in this region. Local businessmen prefer meeting “face to face” and shaking hands.
• Following up through emails is acceptable but not always very fruitful.

13. When is the best time of year to conduct business in this region of the world?

• Any time, except the summer season and more specifically the month of August, i.e., Ramadan, Eid Holidays followed by “Haj” period.
• Plan your trip early and check back with us to ensure that hotel rooms are available and that key contact people are not outside the country.
http://www.qatar-conferences.org/activity.php

13. When is the worst time of the year to conduct business in this region of the world (e.g. holidays, vacation season)?

• Religious Holidays such as Eid, Ramadan and August timeframe.

14. What other important tips would you suggest to a U.S. company before entering a market in this region of the world? Also, what other question(s) I should have asked that you want to share?

• Identifying the right sponsor or business partner on the ground is one of the most important keys to business success in this region. Primary contacts and connections play a great role in business dealings.