Why do Dubai bankers fear the chop?

9 October 2007

1 minute read

Business in Dubai is booming, so why do bankers in the emirate feel so jittery?

Despite the turmoil in the credit markets, business has continued pretty much as usual in Dubai, according to a report last month in the Financial Times. Commercial banks in the region have shied away from the credit markets in favour of their own consumer market. And the city looks as aggressive as ever, having teamed up with Nasdaq in pursuit of positions in international exchanges.

Yet, in our late August poll on redundancies, 46% of you feared the chop, more than in any other region globally. Bankers in the Middle East were also the most twitchy in our previous poll on the subject last May.

Metin Mitchell, managing director Middle East, at Korn/Ferry International, reckons certain sectors should be looking over their shoulder: "They [financial services firms] have over-employed and over-paid in investment banking and private equity. The underperformers not delivering against business plans should be worried."

Tell us what you think. Is there cause for concern or are bankers in Dubai paranoid for no reason at all?

AUTHORPaul Clarke

In
In U.S.
5 December 2007
H-1B (work) visa cap in the U.S. was 65,000 this year. That's less than the amount of internationals Microsoft, Google and IBM alone tend to hire in a given year.
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Du
Dude
18 October 2007
Pretty immature comments coming from an investment banker. Besides strategic, cash goes everywhere. Japanese went on a buying frenzy in the 80's, today Arabs are. nothing wrong with that. Caps as highlighted above would apply to unskilled labour if voted. Nothing to worry about. There are quotas all over the world. open your eyes
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An
Anonymous
11 October 2007
the residency caps do not apply in most other countries. it's particularly unique to the arab world. I say these caps should apply to arabs too all over the world
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An
Anonymous
11 October 2007
you are naive. There is already a view that arab investments should not be allowed in key western strategic assets. Arabs cannot be trusted to own those.
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Me
Me
10 October 2007
First of all, the cap thing is 1) A proposal only, 2)Only for unskill labor. Besides, the are caps in most countries at least, in principle. Finally, regarding putting caps on arabs investments, well..I just don't think that will happen. The arab world is growing increasingly powerful and it seems that will continue, at least for 5 more years.
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