eFinancialCareers

The world’s biggest global custodians are hot on the heels of fund managers flocking to the GCC and are set to build their teams up over the coming months.

Standard Chartered has just announced plans to expand its securities services business in the Middle East with the opening of an operation at the Dubai Financial Market. But it faces some stiff competition from the world’s largest custodians.

Bank of New York Mellon, the biggest player in this space, announced the establishment of a team in the DIFC at the end of June, in order to better service its clients and get closer to the growing volumes of fund management in the region.

Algebra Capital, a fund manager which recently teamed up with Franklin Templeton, expects asset management to triple to $200bn in the GCC within five years. It’s no wonder global custodians, which administer those assets, are keen to get in on the act.

And regional fund managers are increasingly willing to outsource custody functions, says Rafiq Al-Gailani, VP fund services MENA at Deutsche Bank, which started a fund administration operation in the GCC late last year.

“While fund managers concentrate on identifying investment opportunities and maximising returns, the efficient administration of the fund can be just as crucial for success,” he says.

And the global custody space is becoming increasingly congested. JPMorgan Worldwide Securities Services (WSS) opened a Bahrain office last October and is currently expanding the team after the appointment of Tim Peters as head of business development and relationship management for the region.

Francis Jackson, head of business development and relationship management for JPMorgan WSS in Europe, Middle East and Africa, said: "The Middle East and North Africa region is one of our focuses for growth, and we want to provide the best possible service to the fund management and institutional investor community there.”

Northern Trust has also entered the region this year, as have BNP Paribas Securities Services, SEI and Maples Finance. Shuaa Capital’s new Saudi operation also includes custody services.