For a lot of products working with a local sales agent or with a dedicated sales representative can be a good solution.
Especially if you have a customized product or service, or you want to work with a number of resellers in the country, an agent can be the one connecting these parties to your organization abroad.
Agents can be individuals, but I often recommend to work with established companies who already have a good network and where you are not dependent on just one person.
Saudi Arabia, the largest country in the Middle East, has a population of about 35 million as of 2023. It is the world’s largest oil exporter, deeply influencing its culture, economy, and politics.
With a high GDP per capita of approximately $23,000 USD in 2023, Saudi Arabia’s economy is heavily dependent on oil, which accounts for most of its export earnings and government revenues. The country is diversifying its economy, with significant investments in sectors like tourism, entertainment, and technology.
Saudi Arabian businessmen are hospitable. They spend time and effort over making outsiders feel comfortable in their country. They may appear lavish and showy but that’s their way. Saudis are gentle people who avoid conflict. In case any disagreements in business arise, these are resolved by intermediaries or middlemen. They are knowledgeable, especially about their country and their particular line of business. It’s usually a profession that’s passed down through the generations, one that they are proud of.
The principal language of Saudi Arabia is Arabic but most of its business people are well versed with English. Here, the working week takes a break on Thursday and Friday with Friday being a holy day.
A local sponsor or wakeel will be required to arrange your appointments and acquaint you. Build a level of trust before you engage in business talk with your Saudi counterparts. Make general small talk about the country, family etc, but refrain from enquiring about a Saudi’s wife! Dress well and present yourself in an impressive manner to the Saudi Arabians as they will judge you on appearances. Also, women are usually not included in any negotiation processes.
A local consultant can find possible business partners, or you have identified them yourself. But how to convince them to market and sell your products or services?
For this you need an export plan with a clear strategy and sufficient financial details.
If you don’t want to work with agents, you can always set up a local office yourself or try to sell your product from abroad. This all depends on the product or service and the ease to reach the right buyers. Be careful with the contracts that you close with agents. In many countries their status is well protected and you can’t take their recurring income easily away from them.
I always put a lot of emphasis on drafting a good distributor pitch. Even if you already have great sales materials for your end-users, this often does not make clear what the benefits are for a potential agent, distributor or retailer to work with you.
When you approach potential sales channels with your standard documentation, chances are high that they are holding of. If you make it crystal clear what are the benefits for them, like in the example presentation, you will get a much higher response rate.
Please note that it helps to put concrete data in your presentation. You may think it is sensitive, but just know the secret is in how you achieve the rotation or the low returns level, not in the data itself. So share it here, in order to get the right attention.
Entering a new market is an investment. Finding partners, contracts, translations and marketing costs money and you may need additional working capital.
Only with a good plan with enough financial data you can convince banks and investors to fund you. We help you with the complete business case and documentation.