Bankers seek work in Middle East, ignore war fears

War may be looming in Iraq, but that is not deterring financial services staff from seeking work in the Gulf.

Recruitment firms report healthy interest in the region, especially Dubai and Bahrain, which hope to attract many more jobs in the next few years.

An advertisement last month for a risk manager to work for a private equity company in Bahrain attracted about 100 applications, according to John Sleigh, of recruitment consultants Sleigh Select.

'Considering the political climate, I hadn't expected this much interest,' said Sleigh, who was contacted by candidates as far afield as Idaho and Australia.

Another recruiter advertising financial services vacancies in the Middle East said she had received numerous applications from people who had lost their jobs in London or New York. 'People are nervous about working there, but the market is lousy elsewhere,' she said.

Vacancies currently advertised in the region include derivatives, foreign exchange and money market traders and a senior US dollar interest rate swaps trader.

Interest in the Middle East may grow. Dubai is setting up an international financial centre which, it says, could lead to the creation of thousands of new financial services jobs by 2005 in everything from asset management to banking operations and reinsurance.

Deutsche Bank is among the organisations to have expressed an interest in running corporate finance, private banking and asset management operations from the Dubai International Financial Centre. Julius Baer, the Swiss private bank, has established its regional headquarters there.

Dubai's regional rival Bahrain is also planning a waterfront 'Financial Harbour' to house fund management companies and other financial institutions. The centre is to open in 2005.

Abu Dhabi (part of the United Arab Emirates (UAE), as is Dubai) also aims to develop as a financial centre.

Kevin Daly, managing consultant at FSS Recruitment, which is among the companies advertising financial services vacancies in the Middle East, said the United Arab Emirates was becoming an increasingly popular destination with expatriates. There was also interest in neighbouring Oman.

'While there is a downturn in London, the Middle East is more appealing. Expatriates can earn a tax free salary, enjoy the sunshine and get their kids into a good international school,' said Daly.

David Leithead at Michael Page said base pay in the UAE is comparable to pay in London. Bonuses are lower, but income is tax free and the region offers a high quality of life

Other areas are less buoyant. Sherif Samy, chief executive of Skillrate Advisors, a recruitment firm handling financial jobs in Egypt and the Gulf, said some financial services staff in Egypt were facing redundancy.

'In the go-go years of 1995-1998, young professionals with limited experience were grossly overpaid. Over the last two, consolidation and the slow market have led to unprecedented redundancies, and the availability of extremely well qualified professionals,' he said.

In many countries concerns about personal safety are unlikely to disappear. Kroll International, which advises on security issues, has issued a warning to people working in Kuwait: 'The threat of another attack by the Al Qaeda network or its sympathizers on foreigners, especially Americans, is high.'