HSBC’s Play for Mideast Wealth Marred by Exits, Regulatory Curbs

At HSBC Holdings Plc, a star hire who was supposed to reinvigorate the firm’s private banking business in the Middle East is facing a reality check.

Aladdin Hangari’s efforts to build HSBC’s wealth offerings in the region have been hindered by a bevy of high profile departures — including his predecessor Sobhi Tabbara — and fresh regulatory restrictions that will limit his ability to bring on Gulf royals and their associates as new customers, according to people familiar with the matter.

For years, HSBC has topped the league tables for capital markets in the Middle East. It’s landed ...