Saudi ECM surge fuels hiring spree

Equity capital market (ECM) volumes in Saudi Arabia have surged by a massive 162% in the first three quarters of this year, leading to an increase in demand for already scarce talent. However, many IPOs have been put on ice recently and recruitment could cool off during this uncertain period.

The latest quarterly report into activity within ECM has singled out the Saudi market as being particularly active, having secured volumes of $9.3bn to September 2008, compared to $3.6bn during the same period last year.

Alex Cormack, director and head of Middle East at executive search firm Sheffield Haworth, tells us: "ECM hiring in Saudi has been busy, along with more generic investment banking roles. The preference is to take on Saudi nationals, but the smarter Western talent is realising there are big opportunities in the kingdom."

Ian Thomas, head of international recruitment at Banque Saudi Fransi, says that the bank's requirement for ECM staff has increased this year, but it's incredibly difficult to find people to fill the roles.

"There's a scarcity of local talent, and of course the banks will do everything they can to retain them," he says. "What's more, expatriate workers are often tied to their existing companies due to visa restrictions, which means we've had to search both in other Gulf markets and internationally."

Expats in Saudi are dependent on employer sponsorship in order to work in the kingdom. They can't move firms without getting the nod from their existing employer, which means poaching is near-impossible and, with talent scarce, it's unlikely banks will let them leave easily.

Thomas reckons that Saudi's allure is increasing and that the number of unsolicited CVs and speculative applications from outside of the kingdom has risen significantly in the last month alone.

However, recent local stock market uncertainty because of concerns over the global crisis has led to 80 firms postponing IPOs worth an estimated $18bn, according to the Saudi Gazette.

This caution has begun to affect firms' appetite for hiring, says Peter Jones, director of Middle East-focused recruiters MRK Consulting.

"It's been an active year without a doubt," he says. "However, many firms are taking time to assess how the problems around the world pan out in the next two or three months before signing off new headcount."