International financial organisation Essay Example | Topics and Well Written Essays - 2500 words

International financial organisation - Essay Example This will also include marketing tools used by the organisation, customers of the organisation, issues such as customer care, current issues faced by the organisation and control systems used by the organisation. Background of HSBC Saudi Arabia Limited The financial organisation, HSBC Saudi Arabia Limited was developed through the joint venture of international financial institute HSBC (Hong Kong and Shanghai Banking Corporation Limited) and SABB (Saudi British Bank). The Saudi Arabian Capital Market Authority (CMA), the controller and regulator of the capital market and stock exchange has provided its sanction to SABB and HSBC in order to create the initial full-service autonomous investment bank in the Kingdom of Saudi Arabia that has been certified under the new Capital Market Law of Saudi Arabia (HSBC Saudi Arabia Limited, 2011). SWOT Analysis Strength The financial condition of the economy can be evaluated from the overall economic development and expected growth. For the past f ew years, the government of Saudi Arabia has planned for the five year plan and invested in social and physical infrastructure for successfully transforming the economy of Saudi Arabia into a modern state with diversified economy (Saudi Arabia Monetary Agency, 2011). The diversified economic condition with government spending in different segments will strengthen the economy and it will be beneficial for the banking sector. The HSBC Saudi Arabia Limited, with the government planning for the economy, can take advantage out of the economic development. The economic progression of Saudi Arabia market has raised the domestic income and has also enhanced the performance of the banking sector (Saudi Arabia Monetary Agency, 2011). Saudi Arabia has an open policy for foreign investment. This policy of the nation will assist in bringing capital in the country through the banking operations. The HSBC Saudi Arabia Limited can attract foreign direct investments (FDIs) through the policies from foreign clients for the Saudi market. The inflow of foreign currency will assist the bank to increase it operations and also benefit from such activities (EDC, 2011). The stock of ‘foreign direct investment’ in Saudi Arabia was US$ 167 billion in 2009 that rose to US$ 204.3 billion in 2010. Within one year, there has been an increase by US$ 37.30 million. This represents the development of the economy in terms of foreign direct investment of the nation. The stock of foreign direct investment from abroad was US$ 11.41 billion in 2009 that rose to US$ 18 billion in 2010. The increase of foreign direct investment enhances the economy. The banking sector will get benefited from such increase in the investments from foreign and home country. This is a positive sign for HSBC Saudi Arabia Limited to operate in such economy where there are possibilities to increase the foreign investment in the future (Index Mundi, 2011). Marketing Tool HSBC Saudi Arabia Limited has used its â €˜fund management’ schemes to tap the growing economy market. They have a variety of fund management schemes through which they were able to generate huge capital from the Saudi market. This marketing tool is normally implemented according to the