To be effective and successful, an executive must have a basic knowledge of the business community in Saudi Arabia and the Saudi legal system. The first decision for any business is the type of operation to establish. Because a great deal of business in Saudi Arabia involves government contracting, a foreign company should be aware of the basic rules and practices for this area. Before a business establishes its presence, it should develop a basic understanding of the laws governing its operations. Finally, a business should know how to resolve legal disputes if and when they arise.