eFinancialCareers

As the world has turned its attention to Lehman’s army of bankers in the US and Europe, the fate of the bank’s mere 40 employees in the Middle East has largely been ignored. Except, it seems, by headhunters.

With Nomura confirming the takeover of Lehman’s European and Middle East equities and investment banking business, investment bankers are suddenly on firmer ground. The Japanese bank said it would keep a ‘significant proportion’ of the 2,500 jobs across the UK, France and the Middle East.

Lehman’s activities in the Middle East span investment banking, asset management and wealth management, and are based in Dubai. Nomura’s move suggests the investment banking business should be safe. The London Times today said the asset management division may also be under offer, but that a sale could take some time.

Nomura itself appears to be in expansion mode in the Middle East, having recently acquired a licence to operate in Saudi Arabia. It also employs 26 people in Bahrain, according to Zawya Dow Jones.

But even if Lehman’s Dubai-based bankers are turfed out, the DIFC has promised that any expat employees will not be asked to leave the emirate. What’s more, if they find themselves out of work, they’ll have no shortage of offers.

Peter Greaves, director of financial services at Dubai-based headhunter McArthur Murray, says: “It’s currently very difficult for Lehman bankers because they’re being approached by headhunters at all levels. A number of them are receptive, and quite right to explore other options, but largely they’re sitting tight.”

Lehman has, however, already lost its head of sovereign wealth funds, Makram Azar, to private equity firm KKR, after just five months in the job.

Anthony Southam, managing director of Catalyst Search and Selection in Dubai, reckons Lehman bankers in the Middle East are keen to stay in the region.

“Given the state of the market in other parts of the world, they’d be silly not to look for other opportunities in the GCC, where there are plenty of good roles. Some Lehman bankers have become increasingly wary of calls from headhunters. One senior investment banker told me that the recruitment industry in the region is ‘a bit loose’.”

Greaves says it’s been a torrid week for Lehman bankers in the Gulf: “As well as the obvious job concerns, some are new to the region and have been sitting in hotels unsure of who will pick up the tab. I know one guy who has all his personal possessions in a container in the dock, but they won’t release it as they don’t know who will pay the bill.”