GUEST COMMENT: Why I'm ditching the Middle East for Hong Kong

5 February 2010

2 minute read

GUEST COMMENT: Why I'm ditching the Middle East for Hong Kong

I am a continental European by birth, but I'm currently working for a major investment fund in the UAE. Until a couple of years ago, I was working in an investment bank in London, but I got the chance to move into private equity when the market was in a bad shape and moved here. It was a good choice, but now I'm looking to move on again.

I feel like I've got two options: London, or Hong Kong.

London is like my second home. I've got friends there and family there. I did my MBA in London. I've lived there and worked there, and it was the perfect place to develop my skills and make some money. It's always been one of the few places in Europe where you have a chance, despite your nationality and background.

In a way, I'd like to go back to London. The roles there are challenging. It's very developed in terms of private equity - the transactions and deals are top notch and the legal framework is well developed. By comparison, the UAE is like an emerging economy - the legal framework is less strong; the deals are less challenging. I want to be back in a leading financial centre.

Equally, however, the UK tax regime is a big challenge for people like me. If I go back to London, I'll probably get a promotion. That will mean more money and more responsibility, but when I do the maths I'll end up with less than I'm earning now. That's annoying.

By comparison, Hong Kong is like the UK in terms of mentality. It was a British colony for years, the legal framework is pretty similar, and the tax rate is 15%. I also have a lot of friends there and I'll get the chance to work in emerging markets like Indonesia.

Then there's the attitude towards financial services. I go to Hong Kong every month and I've never seen anything adverse written about banking. It's a commercial place: people are there to make money and work hard; no one really cares about anything else. In the UK and the US, by comparison, politicians are stoking popular resentment against bankers because they want to blame someone for what happened.

Much as I like the UK, it's clear to me where I should be going next.

AUTHORAnonymous

Insider Comment

ws
wsf
9 February 2010
I was a banker in Hong Kong and here is why I moved to ME and have no plans to ever go back:
1. I get paid alot more here than in HK and I quite like that
2. Air is much cleaner here, when the wind blows from mainland China your ears will be black from all the pollution, not particularly something I want my son to breath
3. In HK you will get 15-20 days of annual leave and you can never take more than 10 in a row. Here I have close to 40 days.
4. In HK and in Singapore as well there is a lot of "face time" where nobody would dream of going home early even if work is slow. Here I finish my work and go home.
5. ME is tax free (HK taxes aren't horrible but still)
Sure HK is a more mature financial center but would I accept a much lower salary, polluted air, no holidays and hardly ever see my son during the week? Not a snowball's chance in hell! Everybody is different and HK has a lovely pulse to it, in my opinion HK is a brilliant experience for a young single guy. However you should also ask yourself what you know about Asian (especially Chinese) markets and what do you bring to the table as there are a lot of young and technically competent local people
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Cl
Claire
7 February 2010
I am a Head hunter in Dubai - I have made my fortune - im super duper rich - maybe I will look at Hong Kong now - I want to get even richer :-)
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no
norash
7 February 2010
being a veteran HK expat now in ME - there are a lot of similarities believe me but one thing is different - maturity within the industry in HK.
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Mo
Mongoose
7 February 2010
It is worthless, I have done these calculations one thousand times, agree that the financial markets in Dubai or the Gulf are not the most challenging or the most intelectually stimulating but the trade-off taxes, vis-a-vis cost of life, vis-a-vis quality of life is unbeatable.
In Dubai you make the most of your income and life is good, really good, incredibly good.
If you weight everything properly and rationaly, and assuming you were not fired, it is unlikely to think that anyone could leave this city for any other financial center
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PE
PE
6 February 2010
you don't like the fact that the Middle East is like an emerging market ... but you want to do PE deals in Indonesia ?!!! GOOD LUCK
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