eFinancialCareers

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 Middle East.”

Michael Ketley, managing director of recruiters MRK International, reckons there’s been a slowdown from international banks, and local banks are seizing the opportunity: “Local banks are desperate for people across the board. The problem still is, though, that while they might pay for the top executives, for the lower-level positions the sad fact is that they still pay less than international banks.”

Cormack agrees: “They are quite savvy recruiters, and are a competitive force in the local market. They might pay more for the right person, but they’re definitely not over-paying generally. The appeal of working for a local bank is that they are usually very well-connected with the local governments and corporates, and therefore have access to a good deal-flow.”

Ketley reckons that in Saudi Arabia, Riyad Bank, Arab National Bank and Samba are all desperate for people in the areas of project finance, syndications and structured finance. What’s more, new launches like Noor Islamic Bank in January and Gulf Finance House rolling out its First Energy Bank mean local banks are champing at the bit to take on staff.

While local banks might lead the way in sealing juicy corporate deals, figures from Dealogic reveal that the local banks fare badly in the M&A league tables – the top 10 positions all go to international banks. The UAE’s largest bank, Abu Dhabi Commercial Bank, comes in at 194th in the Top 1000 World Banks ratings compiled by The Banker magazine.

However, the rankings also reveal that pre-tax profits in the 94 banks in the UAE grew by 30% last year and the merger of Emirates Bank International with the National Bank of Dubai (to form Emirates NBD) has ensured the region now has a real big hitter. The new venture will have $45bn in assets, according to its chief executive Douglas Dowie.

One area where local banks rule the roost is Islamic finance, reckons James Mackenzie, chief executive of headhunters Mackenzie Executive Search: “A few years ago there was an element of people leaping from local into international banks. But working for, say, Noor Islamic Bank or Dubai Islamic Bank has its appeal for Islamic finance professionals because Islamic finance is its core product rather than a sideline, as is the case in big investment banks.”