Rising Demand for Talent in Dubai
Kuwait’s Global Investment House and United Arab Emirates investment firm Al-Qudra Holding have announced plans to set up an investment bank in Abu Dhabi to tap growth in the second-largest Arab economy, according to Trade Arabia. The report suggests that banks across the region have been expanding abroad as they seek to capitalize on an economic boom fuelled by a near five-fold increase in the cost of oil since 2002. In fact, new research indicates that the coming year will be a turning point for the UAE banking sector.
What’s behind the boom? Soaring oil prices have made the Gulf not only one of the fastest-growing regions but also a vast pool of wealth, making the Middle East a growth priority for banks around the world. According to executive search firm, A.E. Feldman, there is a lot of investment in the Gulf and with that comes increasing demand for talent. The recruiting firm also notes that Dubai seems to be emerging as a hub. The firm reports that salaries are skyrocketing as banks seek to lure top candidates. Investment bankers, risk managers and real estate professionals are among those in short supply. Those able to demonstrate strong modeling skills, transaction experience and excellent communication skills are in a prime position to capitalize on the trend.
Anticipating a rosy economic picture, 2008 is on track to be a watershed year for the UAE banking sector. That’s according to the UAE Research Yearbook 2008 issued by Cairo-based investment bank, EFG-Hermes, according to Emirates Business 24/7. The research report states, “The sector is expected to see expansion and consolidation, with more domestically focused banks looking towards consolidation and larger banks engaging in expansion across the region.”
Wall Street banks are also tapping into the vast resources of the Middle East. They are expanding overseas in search of high-growth markets with the potential to boost revenue and subsequently offset volatility at home. According to research compiled by Boston Consulting Group (BCG), petrodollars and infrastructure investments will drive macroeconomic growth in the Gulf over the next 5 to 10 years.
In the past few years, Citigroup has moved its headquarters to Dubai from Bahrain. Operations have more than doubled in size and expansion is at the forefront of management plans. Goldman Sachs International was granted a license by the Qatar Financial Centre Regulatory Authority to operate as an authorized firm in the Qatar Financial Centre back in July 2007 and has been ranked as a top adviser for M&A in the Gulf region. Morgan Stanley also set up shop in Dubai last March and is generating significant investment banking revenue there. JPMorgan also opened an office in the UAE city of Dubai in April 2007. Lehman Brothers and Lazard have also followed suite.
As banks seek to capitalize on opportunities emerging in the Middle East, a shortage of banking professionals in the region has given rise to serious poaching, according to BCG. Wall Street firms are jockeying for position to benefit from the surge in bond issuance, IPOs, M&A and Shariah-compliant transactions.
