To read this content please select one of the options below:

The challenges foreign banks face in developing markets: an exploratory study

Najla Alomar (Faculty of Business, Government and Law, University of Canberra, Canberra, Australia)
Milind Sathey (Faculty of Business, Government and Law, University of Canberra, Canberra, Australia)
Peter Graham (Faculty of Business, Government and Law, University of Canberra, Canberra, Australia)

Qualitative Research in Financial Markets

ISSN: 1755-4179

Article publication date: 29 December 2022

20

Abstract

Purpose

This study aims to explore the challenges faced by foreign banks in the Kingdom of Saudi Arabia (KSA). It is important to explore the challenges as extant literature provides limited guidelines about this issue.

Design/methodology/approach

A mixed-method approach was used by canvassing 71 questionnaires and 36 semi-structured interviews. The sample included senior managers of foreign bank branches working in the Saudi market by the end of 2019. The quantitative data were analyzed using the distribution fitting algorithmic approach, and it is supported by the qualitative data analyzed using the thematic analysis method.

Findings

Results indicate that foreign banks encounter various challenges including government policies and regulations, the Saudi legal system, high “Saudization” ratio of the workforce, technological advances, high competition and overall economic change (oil price change). It seems that these challenges represent the KSA’s specific business environment.

Originality/value

This study will advance the extant literature on foreign bank entry with evidence from a unique context. This study could also help regulators, policymakers and bankers to better understand foreign banks’ entry into emerging and developing markets.

Keywords

Citation

Alomar, N., Sathey, M. and Graham, P. (2022), "The challenges foreign banks face in developing markets: an exploratory study", Qualitative Research in Financial Markets, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/QRFM-12-2021-0207

Publisher

:

Emerald Publishing Limited

Copyright © 2022, Emerald Publishing Limited

Related articles