Hope for M&A hires in the Gulf

M&A volumes in the Gulf are down by nearly 70% so far this year, but the feeling is that they will pick up going forward as a result of increased numbers of distressed deals. This is likely to result in some hiring in this sector, as Calyon's decision to expand its Middle East team demonstrates.

Figures from Ernst & Young show that M&A deals in the Gulf fell by 66% in the first three months of 2009, compared the same period last year.

However, with the economic situation deteriorating in the region, distressed deals (particularly among financial institutions). In fact, Kuwait's central bank governor Sheikh Salem Abdul-Aziz Al-Sabah has urged the country's banks and investment firms to merge this year.

Calyon, the corporate and investment banking arm of Credit Agricole, is anticipating increased levels of M&A later this year, and is building its Middle East team.

"Critically, at a time when companies are downsizing, Calyon is strengthening its regional team through selective new appointments," said Albert Momdjian, managing director of Calyon.

It's not the only one, says David Howell, managing director of recruiters EM Group.

"Anyone with experience of M&A under a distressed scenario, particularly in the FIG space, will find themselves been particularly highly regarded at the moment," he says.

However, in the current environment, it's unlikely any firm is going to be rapidly building its M&A team in the Gulf, and any expansion will follow Calyon's "selective" approach.

Peter Jones, director of Middle East focused recruiters MRK International, says: "Bahrain in particular is likely to see consolidation among the many financial institutions there. But while we're seeing some demand for expertise in distressed M&A and there are positive signs, current vacancies are still relatively slim."