Second senior investment banker leaves Morgan Stanley's Middle East operations

Morgan Stanley's head of investment banking in the Middle East, May Nasrallah, has left the company, according to sources close to the situation. This marks the second senior regional departure in as many months.

According to sources, May Nasrallah left Morgan Stanley two weeks ago, although the firm has yet to announce her departure. She has been replaced by Cyrus Behbehani, who is currently a managing director focusing on industrials at the bank's London office, and is in the process of relocating.

Morgan Stanley did not wish to comment.

Nasrallah is highly-regarded in the regional investment banking community, particularly because of her close client relationships in Qatar and Abu Dhabi. She's believed to be taking some time out of the industry.

She's been working in the region since February 2006, after relocating from London, where she was head of Middle East investment banking.

This is another blow for Morgan Stanley's Middle East investment banking division. Last month, David Law, chairman of investment banking for the Middle East and North Africa, left to join Standard Chartered as managing director and regional head of origination and client coverage.

Law is one of the biggest names in M&A and private equity, and only moved to Dubai from London last year to oversee Morgan Stanley's investment banking operations.

Morgan Stanley's investment banking revenues for the first half of this year have actually been slightly better than the same period in 2008, according to figures from Dealogic. It has made $32m, up from $31m in 2008, and has a 9.2% market share. It has, however, slipped from second to third in the rankings.

In December last year, Morgan Stanley made 15% of its Dubai-based team redundant.