eFinancialCareers

Equity capital markets (ECM) has been teetering on the edge of exploding into action in the Middle East, but now it’s in full flow. ECM professionals are, therefore, increasingly becoming hot property.

At least 120 initial public offerings (IPOs) are planned in the GCC through to 2010 as more and more firms turn to equity markets to raise funds for expansion, according to investment bank Gulf Capital.

IPO volumes in the Middle East have been good so far this year and already look to surpass 2007 – at least in value. There have been 23, worth nearly $8.5bn, as at July 2008, according to data from Dealogic. This compares with 82 deals worth $12.3bn throughout 2007, and 15 deals totalling $4.7bn in 2006.

Zawya IPO monitor says there are 109 IPOs schedule to take place in the GCC this year.

“This may be due to a lack of existing public equity investment opportunities present for GCC investors due to high market capitalisation concentrations,” said Sameer Abdi, group head of Islamic Financial Services Group, Ernst & Young.

International banks are vying for business in anticipation of this predicted surge in business, with UBS, Deutsche Bank and Credit Suisse all expanding their equity research, sales and trading teams in recent weeks.

More generally, Russell Adam, director of Akamai Dubai says that demand for ECM professionals is picking up, but has yet to match that for private equity and investment bankers.

“There is certainly a huge demand for people in the lower ranks, but for the top end we do get a call for recruitment once in six months,” adds Vera Holt, director of operations, McArthur Murray.

She says a person with five to seven years’ experience can expect a base salary of $130k to $160k bonus and housing if relocated by the bank.

Another recruiter estimates that a professional with similar experience can haul in between $120k and $170k.