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Dubai bankers fear getting the boot

1 May 2007

eFinancialCareers Gulf

Our recent poll suggested bankers in Dubai are the most fearful for their futures.

We asked bankers across our sites in Europe, the Asia-Pacific region and Dubai to rate their chances of losing their jobs over the next two years. The bad news? Almost half the respondents – 48.9% – from the booming emirate reckoned the chances were “high to very high” that they would be packing their bags within the next 24 months. And almost three quarters – 72.2% – thought they had a "fair" or worse chance of getting the boot.

This compared to 66.7% who rated their chances “fair” or worse in the UK and 66.1% in Asia. Most worryingly, almost a quarter of those polled in Dubai – 23% – thought their chances of being shown the door were “very high”. This compares with just 16% in Europe and the Asia-Pacific region, including Hong Kong, Singapore and Australia.

Is the Dubai phenomenon set to be a flash in the pan? The Dubai International Financial Exchange is less than two years old and has already attracted the likes of Deutsche Bank, Goldman Sachs and Morgan Stanley to its sun-drenched shores, but rumour has it trade has been disappointing. Do the poll respondents know something that we don’t?

Comments (13)

Once we start getting to Q3, I believe we will hear about layoffs in Dubai, particularly within international banks that came rushing to the region, and failed to deliver. A classic over estimating trap…

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Comments (13)

  • Foreign banks and individual bankers coming into the region have to realize that inorder to succeed and acquire deals they must first develop a specific plan or strategy focusing on local demographics and market segmentation. Getting the right information is challenging though, and reliance on template business models or projections from elsewhere would not really be appplicable given the unique cultural considerations.




    The question is not whether there is enough supply of banking skills around; rather the issue is what type of relationship skills can foreign banks bring here that is not yet available. The right fit of people skills should be based on a reasonable market-read assessment. Without going through this kind of preparation, there would be lots of frustrations due to miscalculations.

    Reykard Valiente 23 May 2007

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  • The UAE, especially Dubai, has huge growth potential. I feel that there is allot of "briefcase bankers" flocking to Dubai/DIFC with short-term expectations of making quick money.




    Business in this region is based upon long-term relationships. Local banks and financial institutions have attracted excellent talent from local pools as well as from international banks, which has improved the performance of theses institutions therefore competing head to head with the international players.




    The other local phenomenon is the local stock markets. We've had ups and downs; allot of money made and lost and there is minimal interest of HNWI and institutions to invest into offshore markets; especially equities - listed or unlisted. There have been some very high profile international deals out of DIG, Dubai Holdings etc. but these are not the norm. Saudi is a closed market other than the local banks and the few international players licensed by SAMA. Primary focus today is the overheating real estate market.




    We need to give this region a few more growth years before attracting real capital market activity. Regulatory controls are still juvenile with young and shallow equity markets.

    Andrew 10 May 2007

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  • “an average of two IPOs per month in Saudi--thats huge business” <<< I don’t agree with that. IPO deal flow in Saudi remains limited to local Saudi / Saudi based banks, due to CMA and other legal reasons. Plus, you need to have an onshore local retail network to be able to take the IPO successfully. So far, none of the Dubai based banks managed to land an IPO deal in Saudi.


    Once we start getting to Q3, I believe we will hear about layoffs in Dubai, particularly within international banks that came rushing to the region, and failed to deliver. A classic over estimating trap….

    Anonymous 03 May 2007

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  • This is something that is expected. All these bankers have flocked to the region believing that this would be the "new eldorado" of M&A and IPO activity. Shock and horror, there is no M&A (within the region) and no IPOs that would see the new boys in town executing them. Dealflow is a problem and without which you will have a generation of bankers with very limited tangible skills. They put together great pitchbooks but can do very little else.


    Another point relates to the grand delusions of many of these "foreign banks" believing that by having a team of quasi-arabs that they will be able to penetrate the pockets of wealth that are found in some corners of the region.




    As the old bedouin saying goes, "on somedays you look into the desert you see the oasis, but on most the heat shows you a mirage"...

    Anonymous 02 May 2007

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  • I think that business is booming in the mideast and it is geared for more growth especially in the corporate finance/capital markets areas. The key is being able to establish and maintain long-term regional relationships that will add value to both ends, add to that the increasing demand for innovative solutions by clients.




    Think about it, an average of two IPOs per month in Saudi--thats huge business and more to come. Some banks choose to be located in dubai because of its huge growth in real estate and hence, real estate finance. However, most M&A business comes from Saudi.




    As for regional bankers seeking jobs, you ought to select the right recruitment agent who is regionally connected and capable of getting you an interview.

    Anonymous 02 May 2007

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  • Having lived and worked in the UAE for a number of years I would suggest that the gulf market is much smaller than people think. It is totally over-banked.




    Unless there can be stability and Dubai can capitalise on its nearness to a peaceful Iraq and an Iran welcomed into the international community one has to remember that Dubai is built on sand.

    Osmond 02 May 2007

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  • Re: Sick of Dubai: Why does it suck, you don't have any work to do or you don't like the city?

    Looking into Dubai 01 May 2007

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  • I've worked in the Gulf for two years and would dearly welcome getting a redundancy payout and taking myself elsewhere. This place sucks.

    Sick of Dubai 01 May 2007

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  • And brendan, I don't think the archaic labor laws have anything to do with it. You can lose your job in london or new york just as easily.

    Alan 01 May 2007

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  • Not sure the region's potential has been overestimated here - there is a lot of work and the cake is big enough and come one we are not talking about hundreds of bankers. There are barely a handful of bankers here. But deals will not come to them, they will get and have to do some selling.

    alan 01 May 2007

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