eFinancialCareers

Bankers lured to the Middle East under the promise of bumper bonuses may be disappointed – this year’s payouts look set to fall.

Last week, Bloomberg touted the GCC as an M&A oasis for investment bankers who want to reel in the kind of bonuses they’ve enjoyed in Western markets for the past few years. However, figures from data provider Dealogic suggest this theory is more hearsay than fact.

Revenues generated by investment banks in the GCC within M&A, syndicated loans and debt and equity capital markets reached $1.1bn in the eight months to August this year. This is 27% down on the same period last year and even slightly down on 2006.

However, the picture looks better here than it does Europe and the US – revenues were 34% down on last year, according to Dealogic.

A spokesperson for the firm said that the GCC region wasn’t sheltered from the credit crunch but admitted that the figures didn’t include the domestic deals in Saudi Arabia. It says this sector is not yet transparent enough to provide accurate figures on and could constitute a significant chunk of total revenues. Dealogic will include such deals starting next year.

Alex Cormack, director, head of Middle East at recruiters Sheffield Haworth, says bonus potential is still greater in the Middle East than elsewhere, although most international banks will pay lower bonuses than last year. “Star performers will be the exception and may receive an increase,” he says.

However, Jonathan Duckfield, head of executive search firm Options Group’s Dubai office, thinks other factors will come into play when dishing out bonuses this year.

He says: “I think bonus potential is far greater here, simply as a result of there being a continuing need for sophisticated talent as well as retention fears over those who are already on the ground.”

Cormack adds that regional banks in the GCC are now offering guaranteed bonuses in an attempt to compete for the best talent.