New Nomura licences, but does it mean jobs?

Nomura has gained a licence from the Dubai International Finance Centre to continue the investment banking, equities and fixed income business in the Middle East it acquired from Lehman Brothers in October last year. It also has plans to expand and to open other offices in the region going forward.

The Japanese bank inherited Lehman's Middle East team, comprising around 40 members of staff, during the deal last year and now has the green light to carry out investment banking and capital markets activities in Dubai.

Nomura's Middle Eastern activities were previously done out of its Bahrain office, where it employs 26. It was also awarded a licence to operate a Saudi office last year, which it plans to open shortly.

Philip Lynch, Nomura's chief executive officer, Middle East and Africa (who was previously at Lehmans before the acquisition), say the firm is due to "accelerate the development of the Nomura business in the Gulf".

It is also in the process of obtaining a licence from the Qatar Financial Authority.

Whether all this activity actually equates to more hiring is debatable.

A source close to the subject tells us that Lehman's Middle Eastern staff were relocated to London, and rather than take on more staff for the Dubai office, they are likely to be offered the chance to return to the emirate.

One headhunter is also sceptical of the job opportunities that will arise from this move: "People are likely to be moved from other global branches rather than let go. Banks will inevitably give all sorts of positive indications when they open a new office, but in reality they'll exercise a lot of caution before they expand."