eFinancialCareers

After a bumper 2007 in the Middle East, is it going to be more of the same, or will some sectors lose out in 2008?

2008 will be a good year for…

Sovereign wealth funds

Sovereign wealth funds (SWFs) had a good year in 2007 – will 2008 be even better still? Last year, Merrill Lynch economist Alex Patelis predicted that Middle Eastern sovereign wealth funds would soon start acquiring asset management firms in order to tap their talent, such is the dearth of fund managers in the region.

SWFs want their assets to work harder for them. It’s not only behemoths like the Abu Dhabi Investment Authority that are looking to more exotic asset classes – the traditionally conservative Saudi Arabian Monetary Authority, worth about $248bn, is also contemplating more aggressive investments.

“SWFs will continue to increase headcount next year,” says Barbara van Muir, managing director of recruiters WoodHamill Ingram. “They are moving into alternatives, private equity and real estate.”

Hedge funds

Hedge fund recruiters in London may balk at the idea of the GCC region swaying managers away from Mayfair, but the region has already begun attracting talent and is expected to attract even more of it in 2008.

Bahrain is leading the way. It claims to have had some sort of hedge fund presence for 10 years, and expects a number of new players next year after liberalising regulations in 2007.

Russell Adam, managing director GCC, at Akamai Financial Markets Executive Search (Dubai), tips 2008 to be the year for hedge fund managers in the region: “We’re at the beginning of a phase where some international players are looking to manufacture alpha on the ground here, rather than seeing it as a distribution hub."

Sales

Client-facing business development roles are predicted by recruiters to be in more demand in 2008, as banks create more sophisticated product lines and look to tout them to investors.

“Revenue generating roles are the main growth area, and in 2008 we expect that to continue, but with demand for more technical and specialist skills in product lines we haven’t had before, like equity derivatives, for example,” says van Muir.

And 2008 will be a bad year for…

Wealth management

After the frenzied levels of recruitment over the last couple of years, 2008 might actually be the year when wealth managers might be asked to prove their worth and actually bring in the money.

“Banks are waiting for the new revenues to come in from the relationship managers,” says Adams. “So we’re expecting a slowdown from private banks recruiting in the medium term.”

Equity capital markets

OK, so we’re seeing some high-profile ECM deals in Dubai – such as the $4.9bn DP World flotation. What’s more, Ernst &Young has tipped emerging markets to bolster global IPO activity in 2008. But does this mean more jobs?

Unlikely. Recruiters in the region have said that firms stocked up on staff in 2006, and the flurry of activity tipped for the GCC in the New Year may just give them something to do.

But even if new jobs aren’t created, rising experience means ECM professionals with regional exposure are going to be a highly sought after commodity. “These people have a considerable advantage over those people who have a London, Wall Street or European pedigree,” says Michael Ketley, managing director of recruiters MRK.

The eFinancialCareers editorial team is taking a protracted Christmas break. We will be back in full force on January 8th. Happy New Year!