Dubai bankers fear getting the boot

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.

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.

"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....

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"...

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.