Does Credit Suisse Saudi expansion equal recruitment?

Credit Suisse has further extended its footprint in the Middle East with the majority ownership of a local player in Saudi. But does this mean it's actually hiring in the kingdom?

It's been an active year in the GCC for Credit Suisse, which has so far bolstered its equities team in Dubai and gained a licence to operate in Bahrain. After setting up shop in Saudi in May, it has now joined forces with Saudi Swiss Securities to undertake private banking, investment banking and asset management in the region.

Credit Suisse tells us it has plans to expand this venture in Saudi, but has yet to finalise numbers or where these hires will occur. But headhunters close to the situation tell us it's unlikely to snap up new recruits any time soon.

"It's doubtful they'll take on anybody before the end of the year," says one. "They'll be assessing the quality of the people they've bought, and I would expect it to expand, albeit slightly, going into 2009."

Another headhunter tells us there's a mixed response when it comes to international banks hiring in Saudi: "Some are going ahead and finding people, while others are holding off until 2009. The fact is, if you've bought an institution with a view to making a play for that market, it would be silly not to find staff reasonably quickly."

Still, it remains a challenge to recruit in Saudi, with banking talent scarce locally and many international candidates still viewing it as a hardship posting. Entering into joint ventures with local companies is an easy way for international banks to acquire experienced staff.

Headhunters tell us Credit Suisse has been actively transferring staff from Europe to its Dubai operations this year. One high-profile example was Michael Phillip, who switched from European chief executive to chairman of Middle East operations in April. However, employees have so far been more reticent about making the move to Saudi.