Libyans also place great importance on the values of social status, respect and personal dignity, which is where the concept of face comes into the world of Libyan business. As a result of this, business dealings and partnerships are based primarily on trust and reputation; meaning that any prospective Libyan partners will want to get to know you if they are to do business with you.
A large majority of Libyans follow the Sunni sect of Islam and the very traditional Muslim etiquette. Religion, Islam, is very deeply rooted in the society of Libya, and is present in just about every aspect of their daily lives. The Islamic laws also provide the framework for the behaviour of individuals, both in social and business situations. Therefore, dress codes must be adhered to at all times, with men’s attire usually expected to be formal to show respect, and women expected to cover arms and legs to below the knee.
The business hours in Libya vary widely from those in most Western countries and are arranged around a seasonal schedule. In the summer months, business is generally conducted between the hours of 7am and 2pm, whereas the rest of the year, business hours are usually 8am to 1pm and 4pm to 6.30pm. The weekend tends to be Thursday and Friday, or Friday and Saturday.
A constant awareness of social status is of absolute importance when conducting business in Libya since it has a strongly hierarchical society. The maintenance of proper respect for social positions, family name and professions are essential components to a successful business venture in Libya.
Ensure that you shake hands when doing business with your Libyan associates. As part of Islamic etiquette, it must always be the right hand that is used for this, and one should wait for the other to withdraw their hand first before doing likewise.
If meeting with a female business partner, then wait for them to extend their hand first. Also, whilst a compliment about their appearance may be polite in Western business meetings, it can cause offence in Libya to compliment women in such a situation.
Exchanging business cards is also of great importance in Libyan meetings, and you should ensure that your card is double printed, with one side in English, and the other in Arabic, specially for your Libyan business contacts.
When in meetings, it is likely that you will be referred to by your title followed by your first name. For instance, John Borg would be referred to as Mr John, rather than Mr Borg. And don’t be in a rush to discuss business, since usually conversations will begin with a more informal general discussion and small talk. This enables you to build up a rapport with your Libyan contacts, and construct that relationship of trust which is so important in their culture. Learning polite greetings in Arabic may also be a good idea to convey respect.
Avoid, at all costs, public displays of affection or anything that attracts unnecessary a attention to yourself as this will be frowned upon and will likely cause offence.
Once the relationship has been established and the groundwork has been laid, you should expect to find yourself immersed in some tense negotiations, since the Libyan people, and perhaps most Middle-Eastern peoples, are widely known for their hard negotiation skills. In business, these negotiations are often used as a way of gaining honour and respect from counterparts. You should definitely allocate a considerable amount of time for such negotiations.
When talks are finally over you may be surprised to find that no formal written contract of agreement is provided since it is common for such agreements to be solidified by a handshake or spoken decision. Although written contracts are becoming more common within the Libyan business world, especially when large businesses are involved. If these are provided, then ensure that there are two copies of the contract; one in Arabic and the other in English or your own preferred language. This will ensure that all parties involved understand the formal agreement which has been made.
After all of this, it will likely be time to consider your marketing techniques if appropriate to your field. While it is true that the phrase ‘sex sells’ rings true throughout much of the western world, you should refrain from using any form of sexual imagery when marketing your product. Libya, and similar nations, are often very conservative and consider such matters to be more private and personal. Stick to focusing on the quality of the product or service, rather than dressing it up with innuendos or sexual themes.
On the whole, Libya is a vast country with a wealth of business opportunities for those who are willing to adapt to the cultures and ideologies of the nation. The most important part of doing business in Libya is allowing enough time to develop a solid business relationship, upon which trust and reputation are of paramount importance. Should you manage this, then your relationship and market will prosper alongside it.