Business culture in Algeria

Algeria has a unique business culture due to its location at the crossroads of Africa and the Mediterranean basin, its ethnic diversity of Arabs and Berbers, and its 130-year history of French colonization followed by the war for its freedom and independence.

Algerians are very friendly and love to build business relationships based on trust and respect. Therefore, the most important aspect of working with Algerian colleagues is to gain their trust and fully participate in the business process. Personal contact is the cornerstone of business relationships in Algeria, and leaders of Algerian organizations expect meetings with colleagues.

Their concept of personal space is very different from the European concept. Algerians usually stand very close and sometimes hold each other's hands. It's just part of the culture and it's best for you to emulate it. Never put your client in an awkward position — especially publicly — and keep in mind that any service you provide will likely be rewarded.

Personal communication is necessary to demonstrate or promote a product or service. Algerians consider PowerPoint presentations trivial, so it is best to physically demonstrate your product or service.

Business attire in Algeria is formal. Men should wear a suit and tie, and women — business suit or dress.

Greetings

Greetings — it is an experience and should be treated with respect. Extend your hand when greeting others and make eye contact.

If a man meets a woman, keep in mind that shaking a man’s hand — this is the choice of the Algerian woman. Therefore, the best thing to do is wait and see if the woman reaches out to you in return.

As for women dating men, keep in mind that some Algerian men do not shake hands with women for religious reasons. In these cases, the man will not offer his hand or retreat slightly from the handshake offered by the woman.

Meetings

Business appointments are best made in advance and confirmed a day or two before the visit. Algerians can be lax in scheduling appointments, so typical delays can be up to 15 minutes.

Meetings may be interrupted by strangers and this may temporarily distract the people you are meeting with. The conversation will likely return to the topic at hand as soon as the person leaves.

If you plan to use business cards, it is usually recommended to translate them into French and/or Arabic and remember to always use your right hand to give and receive.

Business negotiations

In Algeria, negotiations require a detailed approach that respects cultural norms and traditional practices. Algerians prioritize building relationships before getting into details. The concept of relying on social connections plays a significant role. Introducing proxies can make the negotiation process easier. It's important to take the time to get to know your colleagues, build rapport, and demonstrate genuine interest.

Negotiations in Algeria can be lengthy and include several rounds. Decisions are often made through a consultative process and patience is highly valued. It is extremely important not to rush the process or be overly eager to close the deal.

Letters faxed in French on letterhead are more likely to elicit a response from Algerians than communications via email. Algerians rarely respond to emails.

Indirect communication

Algerians often avoid the direct word “no” in order to maintain harmony and respect for hierarchy. Instead, they may use phrases such as "this will be difficult" or “we need to look at all options.” However, they can also be quite frank, especially with close colleagues or when urgently required. It is important to listen carefully to key messages and be prepared to understand their meaning based on body language and nonverbal cues. Direct confrontation is usually avoided and suggestions are presented in a more suggestive manner.

The power of nonverbal communication

Nonverbal cues play an important role in communication in Algeria. Body language, facial expressions and gestures can convey a wealth of information beyond spoken words. For example, maintaining eye contact signifies attentiveness and respect, while looking away can indicate disagreement or discomfort. It is very important to understand these nonverbal cues. A raised eyebrow can indicate skepticism, and pursed lips — for disapproval. Cultural awareness training can help decipher these nuances.

By understanding the interplay of directness, formality, and nonverbal cues, you can more effectively navigate workplace communication in Algeria.

Price negotiations

In Algeria, initial proposals are expected to fall short of the desired result. Negotiations are seen as an ongoing process and concessions are made gradually. Be prepared to gradually adjust your proposal and demonstrate flexibility.

Understanding hierarchical structures

Algerian enterprises often have a clearly defined hierarchical structure. This system shapes decision making, team dynamics, and leadership styles, requiring an understanding of the cultural context to navigate effectively. Algerians place great importance on titles and hierarchy, and companies should direct requests, invitations and proposals to the head of the organization.

French colonial rule and the emphasis on government control in the past contributed to a preference for centralized decision-making. Authority rests with senior management, reflecting a more bureaucratic organizational structure. Information flows upward and lower level employees are expected to follow directives.

Decision-making authority rests with senior management. While consultation may take place, the final choice often rests with those at the top. This can be seen as a reflection of a culture of power distance. Employees are less likely to challenge decisions made by their superiors.

Team dynamics: respect for hierarchy

Team dynamics are determined by the hierarchical structure. Collectivism, a characteristic feature of Algerian culture, emphasizes group harmony and respect for authority. Junior team members show respect for senior team members, and open disagreement is rare. This can lead to a more siled work environment where information sharing between teams may be limited. However, fostering a sense of community can also create a strong sense of team spirit and loyalty.

Leadership styles: authority and paternalism

The Algerian leadership style is often described as paternalistic. Leaders are expected to be knowledgeable, decisive, and provide guidance to their teams. They can be seen as mentors who care about the well-being of their subordinates. This leadership style is consistent with the cultural emphasis on respect for elders and authority figures. However, a strong paternalistic approach can stifle the initiative and creativity of lower-level employees.

Wind of change: a look into the future

Although hierarchy still prevails, there are signs of a shift towards more participatory leadership styles, especially in young multinational companies. As education levels increase and exposure to global business practices increases, a more collaborative approach to decision making may emerge. Understanding the hierarchical structures within Algerian businesses is critical to effectively managing the work environment.

Giving gifts and inviting guests

Giving gifts — another way to build and strengthen relationships in Algerian culture. It is the gesture of giving that is important, not the size or nature of the gift. Giving the host baked goods, flowers or fruit is always acceptable when invited into an Algerian's home. If there are children in the house, they will definitely appreciate sweets. If your gift is wrapped, don't be surprised if it isn't opened right away, it doesn't mean it won't be appreciated. Hand the gift to the recipient with your right or both hands. Do not give alcohol unless you are absolutely sure that your hosts will accept it!

Hospitality and food are inextricably linked in the Algerian home, and an invitation to join a family dinner is considered a great honor. It is likely that your host family will be Muslim, so be aware that you will have to remove your shoes at the door and men and women will be seated separately for meals. When entering a room, always greet the older person first, after which you can move around the room to the right, greeting each person individually. Politely offer to help the hostess prepare food and clean up after eating. This proposal will most likely be rejected, but nevertheless appreciated. Food is usually picked up with your hands, and you only use your right hand to eat and pass food.

Holidays and observances affecting business activities

Algeria's rich cultural heritage is reflected in its festivals and rituals, an understanding of which is critical to planning business transactions and ensuring a smooth workflow.

Official holidays of national importance

• National Day (July 5): This day commemorates Algeria's independence from France in 1962. All businesses and government offices are closed, and public celebrations and parades are common.
• Ashura (10th day of Muharram): This is the holy day in Islam commemorating the martyrdom of Imam Hussein. Although this is not a public holiday, many businesses are operating with reduced hours or may close entirely.
• Eid al-Fitr (end of Ramadan): This is a three-day holiday marking the end of the holy month of Ramadan. During this period, businesses are usually closed and travel is higher than usual.
• Eid al-Adha (Feast of Sacrifice): This is a four-day festival in honor of Abraham's sacrifice. Just like Eid al-Fitr, most businesses close and travel becomes common.
• Moulid Ennabi (Prophet Muhammad's Birthday): This day celebrates the birth of the Prophet Muhammad. Although this is not a public holiday, some businesses may have shorter hours or close completely.

The Algerian Ministry of Labor determines the official list of public holidays through annual decrees.

Regional holidays and cultural holidays

Algeria's diverse cultural landscape encourages regional celebrations specific to certain regions. These holidays may not be national holidays, but may affect local businesses.

• Yennayer (Berber New Year): Celebrated on January 13th in Berber communities, mainly in Kabyle. Businesses in these regions may experience reduced activity.
• Sehba (Date Festival): Celebrated in the Sahara region, especially in Touggourt, this festival celebrates the harvest of dates. Local businesses may adjust their operating hours during this period.

Understanding the importance of regional holidays demonstrates respect for Algerian culture and promotes positive business relationships.

During public holidays and major religious holidays, expect most businesses to be closed or have limited hours. Plan meetings, deliveries and other business events accordingly. Consider offering flexible work arrangements during these periods to meet employee needs.

Keeping up to date with Algerian holidays and observances will help ensure your business runs smoothly and avoid delays. Demonstrating cultural sensitivity through awareness of these important events goes a long way in building trust and developing positive working relationships.