Banks Strengthening On-the-Ground Teams in the Middle East
While the U.S. economy is slowing, business is booming in the Middle East. Abu Dhabi, in particular, is experiencing a surge in mega-projects in real estate and infrastructure. Meanwhile, Qatar has both the highest GDP per capita in the world and one of the highest rates of economic growth, according to UBS. As a result, financial firms are expanding in the Middle East to capitalize on high-growth markets with the potential to boost revenue and offset volatility at home.
There is a lot of investment in the Gulf and with that comes increasing demand for talent. Mitch Feldman, President of executive search firm, A.E. Feldman, says financial jobs and legal jobs are opening up. Investment bankers, risk managers, private equity and real estate professionals are among those in short supply. The recruiting firm adds that candidates who are able to demonstrate strong modeling skills, transaction experience and excellent communication skills are in a prime position to benefit from the trend.
Banks Bolstering Mid East Teams
In the latest example of investment banks strengthening their on-the-ground teams in the Middle East, UBS recently unveiled several key measures aimed at significantly boosting the firm’s already rapid growth in the Middle East. UBS announced that it has been granted conditional authorization by the Capital Markets Authority (CMA) to set up operations in the Kingdom of Saudi Arabia. UBS says the move demonstrates UBS’s long-term commitment to the region.
Following the final approval of the CMA and other authorities, UBS Saudi Arabia plans to open by year end. John Fraser has been named Chairman of new the operation. He is also currently Chairman and CEO of UBS Global Asset Management and Group Executive Board member. UBS says its Saudi Arabia operation will focus on the bank’s global core securities businesses offering Wealth Management, Asset Management and Investment Banking services.
In its attempt to boost its Middle East footprint, UBS has also applied for license to operate a branch in the Qatar Financial Centre. The bank also plans to expand its Investment Banking Division (IBD) & Equity Research coverage in the region. In fact, UBS is already moving six bankers to Dubai, according to Dow Jones Financial News. The report says the shift will boost the bank’s current team of 200 staffers dedicated to the Middle East market.
Morgan Stanley and Lehman Brothers have also boosted their teams in the Middle East in the past several months.
Morgan Stanley recently announced the expansion of its asset management presence in the firm’s office in the Dubai International Financial Centre (DIFC). “Morgan Stanley opened its office in the DIFC two years ago and since then we have seen strong growth across all parts of our business,” said George Makhoul, Middle East and North Africa (MENA) President for Morgan Stanley.
Lehman Brothers also announced it is bolstering its Middle East effort with two senior-level appointments in the region. Jeremy Isaacs, Lehman’s CEO for Europe, Middle East and Asia-Pacific says, “We are witnessing strong growth across all parts of our Middle East franchise. It is critical that we have increased depth of resource to deliver the capability of the whole Firm.”
Law Firms Expand in the Gulf
Top law firms are also ramping up their practices in emerging markets, particularly the Middle East. Most recently, Hogan & Hartson announced plans to open an office in Abu Dhabi. The Abu Dhabi Executive Council recently approved the firm’s application to open a law firm office in the emirate. The new office will be Hogan & Hartson’s first office in the Middle East. The firm plans to open its new Abu Dhabi office in less than a month on August 1, 2008.
Hogan & Hartson’s current activities in the Middle East and North Africa range from private equity, investments, hotel development, oil and gas, power and water, port and other infrastructure initiatives to strategic policy advice to governments. The firm says its Abu Dhabi office will enhance its existing global capabilities in several practice areas, including: Energy, M&A, International Trade, Infrastructure, Renewable and Alternative Energy, Project Finance, International Business Transactions, Private Equity, Intellectual Property, Aerospace, Aviation, and Transportation, and Investments.
“We have been representing clients active in the Middle East for more than 25 years,” said J. Warren Gorrell, Jr., Chairman of Hogan & Hartson. “We have been increasingly focused on this region and this move further demonstrates our commitment to the Middle East practice and the clients we serve in this part of the world.”
Denton Wilde Sapte also recently added to its network of offices in the Middle East after taking on the Kuwait arm of U.S. law firm Bryan Cave, according to LegalWeek. The firm has also bolstered its corporate practice with the addition of Reed Smith Partner, Richard Hierons. Hierons cited Dentons’ presence in the Middle East as a driving factor for his move. LegalWeek quotes Dentons’ Corporate Co-Chief, Jeremy Cohen, as saying, “Hierons has a strong UK practice and good relations with investment bankers and brokers, but he has an ambition to expand his Middle East practice.”
