GF
Big opportunities, big money for M&A bankers
26 July 2007
Employment opportunities for investment bankers are increasing in the Middle East, as cash-rich local companies look for buyouts or mergers to build their international reputation.
It's a trend that's creating opportunities for global investment companies. Goldman Sachs, for example, is poised to reap US$11.3bn in advisory fees from a multi-billion dollar mega-merger in the Middle East.
Goldman, which moved into a new Dubai office in March after gaining a banking licence last September, is acting as the sole financial adviser to Emirates Bank International (EBI) and National Bank of Dubai (NBD) on their merger.
It's the second M&A mandate the Wall Street bank has completed in the region in less than two months, after it worked on the US$11.6bn sale of General Electric's plastics business to Saudi Basic Industries, Saudi Arabia's largest non-oil company, in May.
Lehman Brothers is offering a fairness opinion to EBI, while Morgan Stanley is doing the same for NBD. Both banks are also building their Middle East operations.
"The market is very active for investment bankers and we are doing a number of searches in the region," says Russell Adam of Akamai Financial Markets. He adds that demand is hottest for bankers across sectors such as financial institutions, industrials, leisure, and telecoms, media and technology.
With fees soaring, pay is commensurately healthy. An investment banker with seven years' plus experience can expect to get US$250k plus bonus (dependent on success and revenues) and a full relocation contract. Bankers with three to four years' experience can expect salaries of US$80k to US$150k per annum, plus family air tickets, full family insurance and a child education subsidy.
the thing is, if you lose your job in dubai, then you will find it difficult to come back to the west as your experience isn't worth anythingAnd don't forget, the arabs only give you 30 days to look for another job. I know a senior partner at one of the big 4 who has a disagreement with the local partner. He had to pack his bags and leave the country in a few hours. Is this worth the risk of going to Gulf?
They want your expertise, they will use you and then throw you away. The thing is the pay packages aren't high enough to take on that risk. Because it is really a one way ticket to a fools paradise.
Dubai has the worst traffic problem, even worse than egypt and also if you have a car accident and hit someone you go to jail first and then your insurance company has to pay blood money of 30000 pounds before you can be released even if you are innocent. If the person hit is in a coma then you stay in jail until the person wakes up. If the person stays in a coma for a year then you stay in jail. I would like to hear the success stories of people who came back from Middle east and got good jobs in the west. Also I don't buy this about big deals, what big deal is EBI and NBD??????
Anonymous 26 Jul 2007
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