eFinancialCareers

Pay in the Middle East is spiralling. It now makes up almost 60% of banks’ operating costs. A survey by consultancy Hewitt Associates suggests salaries in Oman and Qatar lead the way when it comes to eating into banks’ profits. But pay across the Middle East banking sector is becoming a problem – particularly when you consider that the average US bank aims to keep compensation costs below 50% of... Read more

Jobs are plentiful, talent is scarce, competition is fierce and fickle financial services professionals in the Middle East are now changing jobs every seven months. The skills shortage in financial services in the Middle East is well known and it seems bankers are using this to their advantage – bolting after bonuses and shifting jobs for extra cash or a better position. Speaking at a recent conference, and citing headhunter... Read more

Losing your job is never nice, but in Dubai it’s a particularly horrible experience – especially if you’re an expat. The root of the horror is that both residency and the right to work for expats working in Dubai’s finance industry are dependent on sponsorship by the employer. If you’re laid off, this goes up in smoke and you have 30 days to leave the country, unless a new employer... Read more

Islamic finance is already hot, and it looks set to reach boiling point, with the Middle East emerging as one of the major players. But a lack of talent could threaten future growth. In its report ‘Oiling a virtuous banking cycle’, Goldman Sachs predicts that total Islamic banking assets in the UAE will reach $87bn by 2010. This represents 11.3% of global market share, and an annual growth rate of 28%. “There are... Read more

Both Lehman and Morgan Stanley have appointed bankers to liaise with sovereign wealth funds (SWFs) in the Middle East. It looks like the start of a new trend. This week, Lehman announced that it had appointed private equity veteran Makran Azar in the newly created role of global head of sovereign wealth funds. Lehman follows hot on the heels of Morgan Stanley, which has taken on three senior... Read more

It might not be the most glamorous facet of the financial sector, but if you want a job in a retail bank, employers are falling over themselves to take you on. The Middle East is a land of new banks and mergers among existing ones. The establishment of Noor Islamic Bank kick-started 2007, for instance, and the merger of Emirates Bank and the National Bank of Dubai, also last year,... Read more

Slow on the uptake they might have been, but banks are realising the value of having graduate schemes in the Middle East. Why the Middle East? For a start, while international banks look to slice headcount, talent in the Middle East is hard to come by, particularly as nascent sectors such as equity capital markets and derivatives seek to increase their global footprint. What’s more, banks desperate for new revenue streams... Read more

As M&A volumes take a nosedive in the west, investment bankers are being lured to where the action is – the Middle East. Data from Bloomberg suggests the value of announced mergers and acquisitions globally has slumped to $656.2bn in Q1 of this year, down from $971bn in 2007. In contrast, Bloomberg says M&A volumes in the Gulf have doubled from this time last year, to $55bn. Meanwhile, research from... Read more

Rules forbidding the issue of stock options to expats in the Middle East are a major deterrent to foreign talent, so are banks offering any alternatives? The concept of Employee Stock Ownership Plans (ESOPs) is a standard part of compensation packages in developed financial markets like the UK and US, but laws in the Gulf mean that expat employees are forbidden from owning stock in local companies. Lynda O’Mahoney, senior... Read more

It might be wise not to be too rude to a financial headhunter scoping you out for a job in the GCC – it could be the bank itself in disguise. EFG-Hermes, a Middle Eastern investment bank, has revealed that it has its own in-house team of headhunters, which it claims is both a cheaper and a safer option. Declan Ball, global head of corporate human resources at EFG-Hermes, says:... Read more

Banks are splashing the cash on locals as they struggle to meet nationalization targets within a limited talent pool. But what do they really think about this? The government in the UAE has decreed that in all firms 40% of employees should be locals, which is no mean feat when you consider that only 20% of the population are Emiratis. Add niche banking skills to the mix and it becomes... Read more

As multinational banks feel the pinch in the wake of the credit crunch, could local banks in the GCC become a more attractive option for talent? Alex Cormack, director, head of Middle East at recruiters Sheffield Haworth, says: “Local banks have had to start to recruit more aggressively, and the trend is for them to look very seriously at senior-level bankers from top-tier investment banks and move them to the... Read more

Where there’s money, there are law firms and they’re popping up in the Middle East like wild fires, looking to advise financial players on an increasingly diverse range of products. Both European and US law firms are heading eastwards to get a piece of the rapidly expanding financial services pie in the GCC. Last month law firm Latham & Watkins opened three new offices in Dubai, Abu Dhabi and Qatar... Read more

With the value of private equity deals in the Middle East tipped to soar to $670bn over the next 10 years, it’s no wonder firms are scrabbling to bolster their teams in the region. If the ambitious target is achieved, it will vastly overshadow the $22.8bn raised by private equity firms in the region between 2002 and 2007. Growth will be driven by sovereign wealth funds and industry leaders in the GCC,... Read more

With energy investment in the Middle East set to go through the roof, banks are looking to secure a piece of the action. According to figures from the International Energy Agency’s World Energy Outlook 2007, the energy infrastructure in the Middle East and North Africa region is going to need investments of $56bn every year until 2030. This mouth-watering figure is attracting new entrants to the sector. Last month, Gulf Finance House,... Read more

Dubai could soon be hit by a wave of hedge fund managers fleeing the UK. Proposals for increasing the amount of tax that wealthy non-domicile residents pay in the UK are threatening London’s position as the financial centre top spot. If it goes ahead, hedge fund managers could be on the first plane out of there. Dubai is tipped to benefit. A staggering 84% of respondents to a survey of... Read more

Middle East financial centres are making hay on the global stage, but are still unlikely to attract big-hitting bankers. In the latest Global Financial Centres Index, Bahrain and Qatar were some of the most improved cities. While Dubai came in at 24th, Bahrain and Qatar were 39th and 47th respectively. These positions – slotting in behind such minnows as Glasgow and the Isle of Man – hardly set the world... Read more

Financial techie types can cash in on Middle Eastern banks’ focus on security. Middle East and North Africa Financial Action Task Force predicts banks and financial institutions in the region are set to spend $2bn on IT this year and next – mainly centred on risk management to guard against fraud and money laundering. Henry Pretorius, head of risk practice at IT vendor SAS, says: “Amidst the region's booming economy and... Read more

Keen to work for a credit ratings agency? They’re looking to beef up their Middle Eastern offices to cash in on the boom. Standard and Poor’s is the latest ratings agency to set up shop in the Gulf, following in the footsteps of Moody’s, Fitch and the Islamic International Ratings Agency (IIRA). “Gulf companies are increasingly accessing the global capital markets to address their financing requirements, and recognise the benefits that... Read more

As international interest in infrastructure deals in the GCC revs up, experienced structured and project finance professionals are hot property. Credit Suisse, which recently teamed up with General Electric and Abu Dhabi-owned investment firm Mubadala for a Middle Eastern infrastructure fund, estimates the opportunity for infrastructure investment in emerging markets at $1trn over the next five years. Indeed, Credit Suisse reckons investments worth $395bn will be required in the Middle East... Read more