Marhaba to Dubai: communicate with your Arabic investor. Part I

How not to pitch investor the Middle East? Is it true that Arabs don’t say no and does that mean they are willing to invest? These and many other questions are answered in Part II.

The UAE has one of the highest percentages of expats in the world who come here for business and to live. Many of them come from cultures with low-context or direct communication, which is not typical of Arab culture. In this step-by-step guide, we have compiled scientific theories and practical knowledge to help people from other cultures better understand the Arab mindset and approaching business.

Fine-tuning to the communication culture

Knowing what kind of communication culture your dialogue partner has can help you avoid getting lost in translation.Anthropologist Edward T. Hall (Columbia university) divided communication cultures into two types: high-context and low-context cultures. In short:

  • Low-context cultures ppl (USA, Canada, Germany, Russia) tend to speak directly, they want to hear a clear “yes” or “no” right away.
  • High-context cultures ppl (Arabic and Asian countries) lean towards a more subtle way of speaking.

In this article, we will focus more on the latter. If you want to read more about business approaches with low-context cultures, click here.

Features of high-context cultures: 

  • people often use connotations: what is not said (context) has the same meaning as what is explicitly said.
  •  eye movements, facial expressions, gestures have great significance.
  • people need to know the cultural context well in order to understand the essentials when their dialogue partner glosses over something or uses polite phrases.

Step 1. Connect online

Cold outreach in email won’t be very effective when pitching Arabic investors.Before reaching out to an Arabic investor with your business proposal by an email, try to connect with them personally at events, via shared network, or at least on LinkedIn, where you can introduce yourself in a personal message, advises Vera Surzhenko, an independent communications coach, based in Dubai.

A zoom call won’t replace a meeting in person for establishing a trusting relationship. No serious decisions can be made if partners only communicate in zoom. It also helps immensely if you’re based in the UAE: arabic investors will be more interested to discuss an investment round if even only a part of your team is based here.

"When it comes to business, it’s much better to talk in person because our first value is trust, and you can't trust technology in the same way. There are also cases when people have been deceived by deep fakes. So face-to-face dialogue offers the opportunity to build real trust".
Dr Alzubaidi, media manager and TV presenter.

Timing of emails 

There should be a deadline in the email, said Dr Alzubaidi. It’s better to take into consideration longer deadlines in case you and your Arabic investor are doing a joint project for the first time. There should be enough time for both of you to get to know each other and learn more about the startup product. So don’t rush your first deal.

 

In a typical situation in the startup world, when a company sends a pitch to the investor in an email, the response can take two or three days, Dr Alzubaidi said. Urgent questions can be discussed in messengers, said Mikhail Tugin, client relations specialist at NSV Consulting.

Email Cheat Sheet

To burn interest: tell your investors if other firms also want to back you

✉️ We are currently negotiating with investors from Saudi Arabia. They want to buy a stake in our project. Since you also wanted to participate in the investment, please tell me how much you intend to invest in the project and in which part? I value our relationship, we met earlier and can communicate better, so I am willing to give you exclusive conditions

To give update: show that your project goes according to the plan

✉️  Good afternoon, (investor’s name)! How are you feeling? I hope everything is great for you and your family. I would like to share the news that we have an update. You can read more detailed data-room of our project, where there are financial and legal documents, marketing plan and product specifics. I also invite you to participate in the beta test of the product.

Kristina Bell, CIO at RedPad Games AG

Follow-ups

Mrs Surzhenko recommends sticking to a general guideline:

  • it’s reasonable to wait for about one to two weeks before first polite following up. This follow-up is crucial as it demonstrates your interest and commitment without being overly persistent.
  • If your follow-up still doesn’t elicit a response, you might consider waiting another couple of weeks before attempting one last follow-up. Beyond this point, it’s generally advisable to refrain from sending more emails to avoid appearing pushy.
  • Expert does not advise to send a second follow-up. One should be enough.

In the opening phrase in a letter to an Arabic investor it’s respectful to acknowledge the investor’s position and reputation, advises Mrs Surzhenko: “I am writing to you with great respect for your expertise in …and your well-known contributions to…”

Step 2. Prepare for negotiations

Finally, after successful emailing and messaging, you’ve come to discuss your future meeting.

Ask investor if you could meet in one of these places:

  • Your office. In this case prepare drinks and snacks in advance.
  • Office of your partner. When offered food, it’s polite to accept it, compliment its quality and hospitality.
  • A neutral place like a cafe.

If you are the one who has to make a choice, go for a mid-priced place in the city centre, advised Ms Pogodaeva. The best option is a well-known coffee house chain, as these establishments have service standards and will therefore not cause any inconvenience.

Don’t choose an extravagant place:

Arab investors don't like a person who is showing off”.
Mohammed AlMajid, CEO of KAFADS

note: it’s possible that your investor will ask you to join them on a dinner at their home. “It doesn’t happen often, but when it happens, it means that a personal relationship has been established,” said Mr AlMajid. However, as he noticed, it doesn’t guarantee that there’s an agreement on the investments so don’t get over excited.

coming up next
Don’t be greedy.
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