Islamic interest rises

Oil-fuelled wealth creation is driving high-octane demand for Islamic bankers in the private banking sector.

Samar El Gazar, partner and managing director at Leaders Solutions, tells us international banks are running to catch up with local private banks offering Islamic products.

Raed Sater, managing director at Edward W. Kelley & Partners, says that in the past most of the region's private banking was done in London, Geneva or Luxembourg. Now the local market throughout the region is growing very rapidly; the result is huge demand for local staff employed for their customer contacts.

El Gazar says international banks have made the mistake of trying to build market share by paying candidates double the going rate. But she says the premium is a "poison" as many new recruits have been fired for failing to meet very demanding targets.

This contrasts with customers flocking to local Islamic banks where candidates do not have to chase after customers.

But Sater argues that international banks can pay candidates a 30% premium because they offer greater product sophistication.

He adds that for the first time banks are offering guaranteed bonuses to attract staff. As an example, he says a senior private banker in Saudi Arabia can earn a basic US$400k a year with a guaranteed first year bonus of US$200k. Someone with three years' experience can earn US$150k a year plus bonus.

Sater also identifies another market private banks are targeting - non-resident Indians, who are a major financial force in the region.