Citi hints at Middle East expansion after top level shuffle
Citi says that the Middle East remains a "priority growth region" despite losing ground in the investment banking space last year. And, in the wake of appointing a new chief executive for the region, has suggested that an expansion is on the cards.
Investment banking revenues in the Middle East slipped from $848m in 2008 to $660m last year, according to figures from Dealogic, and Citi's share of the pie shrunk substantially. It generated just $16m in 2009, compared to $50m in 2008, and slipped from second to eighth in the rankings.
Nonetheless, Citi has promoted Atiq ur Rehman to the position of CEO in the Middle East, who said that he was looking forward to "expanding our business in the region". Rehman relocated from London to Dubai last year as co-head of capital markets origination for Emea. The capital markets division for the region will now be run by Michael Lavelle.
One possible reason for Citi's bullish stance on the Middle East is that investment banking is just one of many business areas. It also offers corporate banking, private banking, equity research, global transaction services and Islamic banking in the region.
But many international investment banks continue to play up the region's long-term growth prospects and are keen to expand their Middle Eastern presence in anticipation of an eventual upturn. More immediately, fees of around $100m could be generated by the restructuring of Dubai World's $22bn debt, according to the FT, and firms are currently vying for this business.
Citi also lost some key people last year. Mohammed Al-Shroogi, MD for the Middle East and CEO for the UAE, resigned to join Investcorp in June, while Kaveh Samie, regional co-head of equities, MENA departed to join HSBC in October.
Alberto Verme, CEO of EMEA for Citi, said that the Middle East is a "priority growth region".
Headhunters we spoke to, however, suggested that there has been little indication of the bank's intention to hire so far in the region.
