CorpComms Magazine

Think Saudi Arabia and the mind may conjure up a diverse range of images from an oil rich nation swathed in deserts, to a land steeped in heritage and established traditions to possibly a country almost immune from the harsh and real economic realities of the ongoing global financial crisis.

These perceptions could have validity but in the Middle East they paint a picture of a robust economy that can currently direct and control its own future and destiny... and by world standards today that makes it fairly unique.

It is within this environment that a journey is beginning. That journey is the discipline of corporate communications. It may lag approximately three to five years behind more sophisticated environments but it is now on the business agenda and radar and given Saudi Arabia's stated ambition to be a top ten globally competitive economy by 2012 - it looks like it is here to stay.

The current pre-occupation is to get better at extracting more value from it, to understand its consequences more and to develop better capabilities to deliver the outputs. No different to the aims the world over in corporate communications - the difference is the starting point.

The distinctive Saudi Economy

The operating environment for corporate communications to build its credentials and evolve within Saudi Arabia is distinct. Saudi Arabia continues to build, boosted by oil revenues and average annual growth rates of three to four per cent. The Kingdom has delivered a $400 billion five-year financial stimulus package without fear of debt and with the advantage of evolving key strategic infrastructure and capital projects to further boost the economy. This strong economic background has served to push new disciplines, such as corporate communications, into the business psyche.

Another important factor in the potential rise of corporate communications is the increasing number of domestic companies looking to expand regionally and internationally.

This move into merger and acquisition activity brings new mindsets and a need for greater levels of communication capabilities. For example at NCB, the acquisition of Istanbul-based Turkiye Finans two years ago resulted in the first significant overseas foray for the business, the creation of an international division within the group and the communication challenges of working across two continents.

Yes, there will be those who say that Saudi Arabia is a difficult market to break into, that relationships and trust matter more in this part of the world than capability and that Saudis will only do business with Saudis. Well, some of this may have substance but as the first ex-pat (of proud Scottish origins) to head a corporate communications function for the biggest bank in the largest economy in the region - I would argue that it is not a 'closed shop' as some would suggest.

The changing demographics

Finally, and perhaps most significantly for both the economy and the progress of corporate communications, is the significant demographic changes taking place within Saudi Arabia.

Approximately, 65 per cent of the country's 22 million population are under the age of 25. The growing importance of the youth market across all walks of life is being deeply felt.

Corporate communications is no exception to this phenomenon with more young people wanting to experience careers in media and PR, the significant and tangible rise of social media channels and awareness amongst a new customer elite and an increasing appetite amongst the young to learn more from other geographies.

This is significantly changing the ways companies are thinking about the medium to long-term and the 'engagement piece' with this body of future customers, employees and opinion formers is well underway.

Corporate communication challenges

Anyone with working experience of Saudi Arabia will highlight some significant challenges that need to be overcome if the country is to be truly welcomed at the top table of international powers.

Change is unquestionably happening but change, as we all know, takes time. It also needs to happen within the development of corporate communications in Saudi Arabia.

Here there are three significant challenges to address:

• use of evaluation in strategic and tactical delivery
• the employment of women within business
• the real absence of PR network forums or equivalent counterpart contacts

Evaluation techniques within the Arabic culture can often resemble a perceived 'name and shame' exercise rather than extracting value or long-term beneficial lessons.

Its deployment has to be handled professionally, sensitively and with great planning. In its infancy, its techniques are rudimentary but a lot more of it needs to be done if corporate communications is to justify its business value on a Return on Investment (ROI) basis.

Another challenge is women in the workplace, but this is gradually being addressed by government, business and society and numbers are increasing. Corporate communications is benefitting from this movement and whilst numbers employed in PR/communications is low, the proportion of females within this group is above other professional averages. This is to be encouraged if corporate communications is to make a long-term impact on business.

The final challenge is the ability to network, to exchange ideas and best practice and to generally 'chew the fat' with counterparts and colleagues within the discipline.

Presently Saudi Arabia lacks the PR networks and forums to do this and this can be personally and professionally frustrating.

The future

Looking ahead, Saudi Arabia has the potential to be a significant communication player both within the Gulf Region and the wider global community.

Admittedly, a number of factors have to come together to make this happen but its significance and contribution as both an economic and political player in the region can only help the transition in the coming years.

There are distinct capability, educational and social challenges to overcome but there is a willingness to learn, a strong desire to adopt best practice and a deep recognition that reputation matters.

It is no longer a question of Why communications? but rather What can it deliver and how should it be deployed? It is a journey and one with a long way to go. But it is underway and for those of us with a 'building blocks' mentality... it is a fascinating and challenging environment to operate within.

Where the end destination will be for our discipline in Saudi Arabia remains a fascinating question. Will it become an established reality in business or a perceived mirage masquerading as a fad? Time will tell but the early signs are encouraging.

share me: del.icio.us | digg | reddit | Tweet