More sales staff than money managers for Middle Eastern fund rush
Reason dictates there should be a rush of asset management hiring in the GCC - local fund managers have posted stellar revenues, and international firms are setting up in the region. But while sales and marketing roles are in demand, firms are holding off taking on portfolio managers.
Global investors' ample appetite for GCC assets is demonstrated by some recent results. Shuaa Capital's asset management division saw an amazing 636% increase in operating profits over the last year. At the same time, assets under management swelled by 118.7%.
Meanwhile KIPCO Asset Management in Kuwait posted a 57.31% leap in profits for the first quarter of 2008.
BNP Paribas Asset Management has just set up in Bahrain, following the likes of Pictet Asset Management, Schroders, BNY Mellon Asset Management, Pioneer Investments and Thames River Capital, who have moved to the region in an attempt to cash in on sovereign wealth funds' appetite for global products.
But asset managers are either keen to sell their GCC products to international investors, or aiming to tout global funds to Middle Eastern institutional investors. Therefore, most of the recruitment is around the sales space rather than money management, says Elizabeth Hackford, vice president at recruiters Sheffield Haworth.
"Most multinational firms now offer MENA funds, but these tend to be manufactured outside the region; very few have portfolio managers on the ground. The vast majority of hires in the region for these firms are for sales roles."
Tel Rashid, regional manager Middle East and Africa at headhunters Spengler Fox, says most firms bring people in from overseas: "It's very difficult to find people for asset management roles and you have to look abroad. I wouldn't say people are coming over in droves, but they're definitely more willing to make the move now."
International asset management firms, like investment banks, are keen to transfer top people out to the Middle East, says Hackford, but there's very little external hiring going on.
"Local firms are building up their teams rapidly," she adds, "but in reality it's a very small market and asset managers often use their own contacts to make hires directly."