Regional Expansion of Emerging Market Banks: Evidence from the Middle East

Abstract

This study investigates challenges and opportunities that regionally expanding emerging market banks face. We focus on four leading Middle Eastern banks' internationalization trajectories and performances by employing a case study approach. We first examine the four banks' choices of target markets, entry sequencing, and entry modes over time and then analyze their entry strategies and post-entry financial performances in one of their key markets, Turkey. We show that the success of regional expansion strategies depends on parent bank characteristics such as scale and capital strength, strategic decisions regarding entry mode and timing, and host market structure and competitiveness.