How far can rules and cultural aspects affect brands in the Middle East? Obviously, in some cases like HSBC Bank, it can cause major changes on the brand, resulting a totally new brand name; SABB.

Reviewing Saudi rules covering foreign investments reveals that the Kingdom, which is definitely considered the largest market in the Middle East, is enforcing a law whereby local shareholders own a majority in any international bank that operates in Saudi Arabia.

HSBC, which stands for Hong-Kong Singapore Banking Corporation, is now known in Saudi Arabia as SABB “Saudi British Bank”. Another example is the Saudi American Bank “SAMBA”, which used to be a shared venture between CitiBank and Prince WSaleed Ben Talal until AlWaleed acquired the whole bank.

But is it only the governmental regulations that affect brands in Saudi Arabia? In a country with a majority that speaks Arabic only, brands found it vital to write their names in both languages to ensure proper awareness and understanding among the populatio. You don’t see this thing in the rest of the Middle East.

International brands are keen to create a global image, and losing a circle in the chain could affect that image. But, it seems, the experiment works in Saudi Arabia.

via [ mediaME ]