The British Iranian and Middle East Bank, which was transformed into the British Bank for the Middle East, opened its branches in Jeddah and Khobar in 1950. Depends on the amount of profit earned by the bank on the pilgrimage to Mecca. One of the main reasons for establishing banks is to serve the financial needs of hajj pilgrims. Hong Kong and Shanghai Banking acquired The British Bank of Iran and the Middle East in 1959. in 1979, Saudi Arabia began the process of saudization of all financial institutions. This means that foreign banks with a majority of shares do not have the right to carry out financial and commercial activities in Saudi Arabia and to use the profits they receive in the Kingdom. All banks that own the lion's share of foreign capital were to merge with companies in Saudi Arabia, i.e. become companies with Saudi capital. HSBC Holdings PLC has become an integral part of the financial system in Saudi Arabia. In 1978, it opened its first branch and was renamed The Saudi British Bank. 40% of The Saudi British Bank is owned by HSBC Holdings PLC which has a maintenance agreement with The Saudi British Bank.