GCC banking pay holds up better than anywhere else

Bankers in the Middle East are in an enviable position. Though job cuts and salary reductions are very much on the agenda for firms in the Gulf, they are the lowest in the world, according to a new survey.

Total compensation packages for financial professionals in the Middle East fell by 10% last year, according to the 2009 salary survey by executive search firm Napier Scott.

This might not be the greatest news, but compares favourably against an average slump of 55% in other areas of the world.

The study took in responses from 4,000 front office bankers across the world and reveals that London saw one of the biggest reductions in compensation - down 62% on last year - and that New York is the highest paying financial centre.

In spite of some international banks reducing their Middle East teams, it still pays the most to work for one in the region.

For instance, a managing director working in corporate finance within an international bank received an average compensation of $566k, while the same position in a GCC bank paid $402k.

At the associate level, however, you can earn slightly more working in corporate finance within a local institution. Total packages come in at $134k, whereas it's $127k at an international bank.

But, it seems, you might have a better chance of securing a job within a local firm this year.

In the 'State of the Financial Services Industry 2009' study by Morgan Stanley and Oliver Wyman says local banks will look to secure staff from troubled western institutions in order to "bolster capabilities".

Average compensation in the Middle East

Corporate finance

Global banks (Dubai-based):

Managing director: $283k (base), $283k (bonus)

Executive director: $208k (base), $208k (bonus)

Director: $164k (base), $96k (bonus)

Associate director: $127k (base), $75k (bonus)

Associate: $82k (base), $45k (bonus)

GCC banks (Dubai-based):

Managing director: $201k (base), $201k (bonus)

Executive director: $164k (base), $164k (bonus)

Director: $134k (base), $97k (bonus)

Associate director: $112k (base), $75k (bonus)

Associate: $82k (base), $52k (bonus)

Private equity:

Global banks (Dubai-based):

Managing director: $224k (base), $224k (bonus) + carried interest

Executive director: $194k (base), $194k (bonus) + carried interest

Director: $149k (base), $149k (bonus)

Associate director: $75k (base), $37k (bonus)

Associate: $45k (base), $22.3k (bonus)

GCC banks (Dubai-based):

Managing director: $224k (base), $224k (bonus) + carried interest

Executive director: $164k (base), $164k (bonus) + carried interest

Director: $134k (base), $67k (bonus)

Associate director: $104k (base), $52k (bonus)

Associate: $74k (base), $45k (bonus)

Asset management (portfolio manager)

Global firms (Dubai-based):

Managing director: $224k (base), $149k (bonus)

Executive director: $149k (base), $89k (bonus) + carried interest

Director: $127k (base), $60k (bonus)

Associate director: $104k (base), $45k (bonus)

Associate: $82k (base), $45k (bonus)

GCC firms (Dubai-based):

Managing director: $208k (base), $60k (bonus)

Executive director: $149k (base), $74k (bonus)

Director: $119k (base), $47k (bonus)

Associate director: $97k (base), $37k (bonus)

Associate: $67k (base), $30k (bonus)

Private Banking (client relationship managers)

Global bank (Dubai-based):

Managing director: $298k (base), $380k (bonus)

Executive director: $223k (base), $290k (bonus)

Director: $149k (base), $223k (bonus)

Associate director: $104k (base), $164k (bonus)

Associate: $74k (base), $112k (bonus)

GCC bank (Dubai-based):

Managing director: $261k (base), $186k (bonus)

Executive director: $194k (base), $119k (bonus)

Director: $164k (base), $89k (bonus)

Associate director: $134k (base), $60k (bonus)

Associate: $89k (base), $45k (bonus)

Source: Napier Scott