Time to migrate to an emerging market?

24 September 2007

2 minute read

New markets have stood up well to the credit crisis and most banks are still expanding local franchises. Is now the time to go emerging?

Based on rising oil prices, soaring Middle East M&A, and banks' untrammelled enthusiasm for all things East European, the answer is probably yes.

According to Bloomberg, Persian Gulf states have spent US$68bn on overseas acquisitions this year (including Abu Dhabi's recent purchase of a 7.5% stake in US private equity firm Carlyle Group) and with oil prices expected to remain high, the GCC M&A pipeline is unlikely to dry out any time soon.

Banks are equally keen to capitalise on the unreconstructed economies of Eastern and Central Europe. Recruiters in both the GCC and Russia say there's still plenty of hiring - Goldman has acquired a licence to operate in Qatar; Citi has bought into equities in Turkey; and Carlyle is pushing into Poland.

There are doubters, however. Back in July, James Montier at Dresdner warned that over-valued emerging-market equities showed the degree to which investors had lost touch with reality. And if there is a widespread rout, there's always the chance that banks will ditch their furthest-flung outposts first.

Let us know what you think - is a career shift to an emerging market a clever hedge against redundancies at home, or is it the last-ditch option of bankers whose careers are flagging elsewhere?

AUTHORSarah Butcher

Global Editor

Wo
Woman of the week
28 September 2007
Russia's banking system is less stable than everyone here might like think. Banks in the country are massively overvalued and interbank rates are rising. Look at the fundamentals before committing your career.
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La
Laert
27 September 2007
is it the last-ditch option of bankers whose careers are flagging elsewhere?
YES.
Maybe except BRIC.
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Vi
Visor Capital - London
26 September 2007
The emerging markets presents a great challenge and will be attractive to many but not all investors and professionals. It takes a different mind set to work in these markets but the rewards are there.
The dynamics are there to be seen and we believe people with market experience in the western world will add a great deal of value. Anyone thinking of getting involved in this exciting and developing market should take a closer look at the activity and huge upside that exists in Kazakhstan. Once you start finding out some of the facts you will be hooked into wanting to know more.
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An
Anonymous
26 September 2007
Dubai sucks. It knows it can't be a part of the West, where equality, freedom and respect prevail. They are just trying to get a bunch of Westerners who are fed up with paying taxes to come over.
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Em
Emerging Market Specialist
26 September 2007
One should understand dynamics of emerging markets- and should leverage their expertise of western world. I am an Emerging market analyst and have experienced market closely.I would strongly advise aspiring and even matured candidate to have a fresh look at the emerging market- rather I would call is New Growth Market !
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