Getting in at graduate level

Slow on the uptake they might have been, but banks are realising the value of having graduate schemes in the Middle East.

Why the Middle East?

For a start, while international banks look to slice headcount, talent in the Middle East is hard to come by, particularly as nascent sectors such as equity capital markets and derivatives seek to increase their global footprint.

What's more, banks desperate for new revenue streams are upping their teams - Morgan Stanley, for instance, currently employs 100-120 people in its Dubai and Saudi offices and plans to increase this to at least 250 by 2010.

M&A volumes in China and the Middle East in the first quarter of this year have almost doubled, to $55bn, from the same period in 2007, according to Bloomberg.

Private equity has seen stellar growth since 2005, according to the Gulf Venture Capital Association.

And big ticket IPOs, such as the $2.8bn flotation of Inma Bank in Saudi and the $5bn DP World deal in the UAE, show the capital markets are taking off.

Meanwhile, the fledgling derivatives market is tipped to swell to $250bn-$300bn in the next five years, according to local investment bank Arqaam Capital.

International banks' programmes

International banks like Citi, Deutsche Bank, Lehman Brothers, Merrill Lynch, Morgan Stanley and UBS all have a Middle Eastern presence, and some now hire graduates to train up in the region.

Merrill Lynch has hired three graduates into Dubai for the first time this year on a rotational programme around its global markets, investment banking and global wealth management divisions. Citi takes on graduates to work in its corporate banking, equity sales and trading, global transaction services and operations and technology businesses in the Middle East.

Credit Suisse and Morgan Stanley intend to hire graduates for their Dubai offices for the first time in 2009. The numbers aren't huge - Morgan Stanley plans to take on 10 graduates to work across investment banking and sales and trading. Recruits will start off their training in London before making the move to either Dubai or Saudi, says Stephanie Ahrens, head of graduate recruitment at the bank.

Similarly, in the future, Merrill Lynch candidates could also be given the option of kick-starting their career in London after completing the initial six to eight-week global training programme in New York, before starting work in the local office in Dubai.

Unfortunately, the deadline for applications to international banks this year has now passed. If you want to work for a global bank in Dubai, you'll need to apply from September - when applications open again. Banks will take on a mixture of both UAE nationals and western students, but bear in mind that Arabic is a distinct advantage and, in the case of Morgan Stanley, a prerequisite.

The local option?

The other alternative is to apply for a trainee position at a Middle Eastern Bank. However, while this may be open to Arabic nationals studying in the UK, anyone else may struggle.

First Gulf Bank, RAK Bank, Emirates NBD and National Commercial Bank all have equity, treasury, Islamic banking or private banking divisions which take on graduates.

The National Bank of Abu Dhabi employs 'unlimited' numbers of graduates across its retail, accounting, commercial banking and investment banking divisions, according to Omaimah Khoori, assistant manager of Emiratisation. But don't get too excited - it's only available to Emiratis.

Similarly, Gulf Finance House (GFH) takes on eight graduates a year to work in its investment banking sector, but this is exclusive to Bahrainis.

Where are they hiring from?

International banks tell us they've been particularly active in the American University of Sharjah, British University in Dubai, American University of Beirut, American University of Cairo and Saudi unis - as well as western educational institutions.

Khoori at the National Bank of Abu Dhabi says she favours top UK universities.

Alison Abu, executive director of HR at GFH, says as well as the University of Bahrain, they use the Crown Prince Trust, which targets elite students from the likes of the London School of Economics and Yale.

Morgan Stanley says it is partnered with AIESEC, an organisation that runs programmes to allow students from all over the world, including emerging markets, to take part in international exchanges.