Saudi Arabia Market Entry: Why Leadership and Shared Values Are Critical

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Saudi Arabia Market Entry

When Hans Nilsson, Chairman of 7startup’s Advisory Board, took the stage at the Global Project Management Forum (GPMF) in Riyadh, his message resonated far beyond traditional project management circles. His presentation on “Leadership and the Importance of Robust Values and Culture” also struck a chord with western technology companies seeking Saudi Arabia market entry to scale and contribute to Vision 2030.

Drawing from his extensive experience as former CEO of multinational industrial technology group Spectris plc and his early career with Silicon Valley giants Hewlett Packard and Flextronics, Hans delivered insights that are particularly crucial for Series A and B tech startups considering Middle East expansion.

The HP Way: A Cultural Blueprint for Global Success

Hans opened his presentation with a powerful statement: “All good habits I learned in management came from HP, all bad habits from somewhere else!” This wasn’t just nostalgia—it was a masterclass in how shared values create sustainable competitive advantages, especially when expanding into new markets like Saudi Arabia.

Saudi Arabia Market Entry

The HP Way, which Hans highlighted as “one of the most admired and emulated corporate cultures of the 20th century,” was built on five enduring organizational values:

  • Trust and respect for individuals
  • High level of achievement and contribution
  • Uncompromising integrity
  • Teamwork
  • Flexibility and innovation

For Western startups entering Saudi Arabia’s market, these values aren’t just nice-to-haves—they’re essential for building the trust and credibility needed to secure those crucial first Proof of Concept (POC) engagements with Saudi enterprises and government bodies.

Why Culture Matters More in Cross-Border Expansion

Hans’s experience managing over 6,000 people across 40+ countries at Spectris provides unique insights for startups considering Saudi Arabia market entry. As he explained during his GPMF presentation, “In many countries with ethical challenges… shared values [are the] cornerstone to success.”

This is particularly relevant for go-to-market strategies in Saudi Arabia, where relationship-building and trust are fundamental to business success. Western tech startups that fail to establish clear shared values often struggle with:

  • Saudi Arabia Market Entry
  • Cultural miscommunication between Western headquarters and Saudi operations
  • Inconsistent customer experiences that damage reputation in tight-knit business communities
  • Regulatory compliance challenges due to unclear ethical guidelines

The Strategic Framework: What to Praise, Monitor, Ignore, and Address

Hans presented a comprehensive framework that’s directly applicable to startups scaling into Saudi Arabia. His “complete example” provides a roadmap for building culture that supports successful market entry:

What You Punish, Praise, Ignore and Pay Attention To

What to Praise (Building Success Behaviours)

  • Taking initiative in unfamiliar market contexts
  • Meeting team goals despite cross-cultural challenges
  • Creative problem-solving for local market needs
  • Positive communication across cultural boundaries
  • Eagerness to adapt to Saudi business customs
  • Knowledge sharing between Western and local teams

Pay Attention To (Early Warning Signals)

  • Communication effectiveness across cultures
  • Time management with different business rhythms
  • Adaptability to local feedback and customs
  • Initiative in solving market-specific challenges
  • Attention to detail in regulatory compliance
  • Team mental health during international expansion stress

Ignore (Energy Drains)

  • Cultural comparison complaints
  • Minor process differences between markets
  • Individual bad days during adaptation periods

And What to Address Immediately (Culture Killers)

  • Withholding market intelligence or local insights
  • Any form of cultural insensitivity or dishonesty
  • Behaviours that damage relationships with Saudi partners
  • Actions that create negative work environments during high-stress expansion phases

The Power vs. Influence Principle for Saudi Market Success

Perhaps the most profound insight from Hans’s presentation was his closing quote: “Power gets depleted when exercised whilst influence, if accepted, multiplies and grows.” – Hans Nilsson

This principle is particularly powerful for Western startups entering Saudi Arabia, where relationship-based business culture means that influence—built through consistent values-driven behaviour is far more valuable than attempting to impose Western business practices through positional power.

How Strong Culture Accelerates Saudi Market Entry

Based on Hans’s frameworks and our experience at 7startup helping Western tech startups scale into Saudi Arabia, companies with strong shared values see measurable advantages:

For Leadership Teams:

  • Faster decision-making when navigating complex regulatory environments
  • Enhanced collaboration between Western headquarters and Saudi operations
  • Higher employee retention during challenging market entry phases
  • Stronger ethical leadership when facing local business customs that may differ from Western norms

For Saudi Market Success:

  • Accelerated trust-building with government bodies and enterprise customers
  • More effective POC-to-contract conversion through consistent value delivery
  • Stronger local partnerships built on demonstrated reliability and integrity
  • Enhanced reputation in Saudi Arabia’s interconnected business community

The 7startup Advantage: Culture Meets Deep Tech Expertise

Hans’s insights reinforce why 7startup’s Venture Capital as a Service (VCaaS) model is particularly effective for Western deep tech startups entering Saudi Arabia. Our unique approach combines cultural intelligence with sector-specific expertise in areas critical to Vision 2030:

Saudi Arabia Market Entry

Cultural + Technical Integration:

  • Deep cultural intelligence from leaders like Hans who’ve successfully managed multinational technology expansions
  • Ground-level operational support in Riyadh handling sales, integration, and technical support locally
  • POC-to-adoption pathways that fast-track enterprise and government uptake while minimizing cultural and technical risks
  • Proven frameworks for building culture that supports sustainable deep tech deployment in the Middle East

The Vision 2030 Opportunity for Deep Tech Startups

Saudi Arabia’s Vision 2030 creates unprecedented opportunities for Western deep tech startups, particularly in industrial automation, AI-powered inspection systems, autonomous robotics, and sustainable technologies. However, success requires more than just cutting-edge technology—it demands the kind of robust leadership culture Hans outlined at GPMF.

Deep tech startups face unique cultural challenges when scaling internationally. Unlike software companies, hardware and robotics startups must navigate:

  • Complex regulatory environments for industrial and defense applications
  • Extended sales cycles requiring sustained relationship-building with government and enterprise customers
  • Technical integration challenges that demand local operational expertise
  • Cultural adaptation of training programs for Saudi technical teams

Startups that invest in building shared values around integrity, teamwork, and cultural adaptability—while maintaining technical excellence—are positioning themselves for the long-term partnerships that drive sustainable growth in Saudi Arabia’s rapidly modernizing industrial sectors.

Key Takeaways for Deep Tech Series A and B Startups

If you’re a Western deep tech startup with proven technology in industrial automation, AI-powered inspection systems, robotics, or sustainable technologies, Hans’s GPMF insights suggest focusing on:

  1. Establish clear shared values before entering the Saudi market, particularly around technical excellence and cultural sensitivity
  2. Invest in cultural intelligence and relationship-building capabilities for extended enterprise sales cycles
  3. Build influence through consistent technical delivery rather than relying solely on Western innovation credentials
  4. Create frameworks for decision-making that account for complex regulatory requirements in defense, energy, and manufacturing sectors
  5. Partner with embedded experts who understand both deep tech commercialization and Saudi operational requirements

Ready to Scale Your Deep Tech Startup into Saudi Arabia?
Saudi Arabia Vision 2030

The insights Hans shared at GPMF represent decades of experience scaling technology companies across cultures and borders, combined with 7startup’s team based in Riyadh deploying complex deep tech solutions in the Saudi market. Our VCaaS model bridges the gap between Western innovation and Saudi operational requirements.

We don’t just provide capital—we embed the cultural intelligence, technical expertise, and operational support that Hans’s framework demonstrates is essential for sustainable deep tech commercialization in challenging international markets.

Hans Nilsson serves as Chairman of 7startup’s Advisory Board, bringing decades of experience scaling technology companies globally. His insights from the Global Project Management Forum 2025 reflect 7startup’s commitment to providing smart capital with deep cultural and operational expertise for Western startups entering the Saudi Arabian market.

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