Standard Chartered may be setting the pace for Middle East expansions
Standard Chartered's recruitment of its most senior executive ever in Dubai suggests international banks are again eyeing growth in the Middle East. But is the bank the exception rather than the rule?
V. Shankar has been named as CEO, Middle East, Africa, the Americas and Europe for Standard Chartered, and will be based in Dubai - unlike the role's previous incumbent, Gareth Bullock, who performed the role from London.
Peter Sands, group chief executive of the bank, pointed to the fact that Shankar is the bank's most senior executive ever to be based in the Middle East, which is "strong statement of our commitment to the region".
Standard Chartered is also on the hunt for a chief executive for its new Libya operation as well as a number of other roles throughout the Middle East. This, combined with other recent senior appointments and the launch of offices in Saudi, Qatar and Bahrain, suggests the bank is actively expanding in the Middle East.
It's easy to see why. While the majority of investment banks suffered in the Middle East last year, Standard Chartered posted a 25% increase in revenue for the region.
It's tempting to conclude, therefore, that Standard Chartered's emerging markets focus means it's one of the few international banks looking to expand in the Middle East this year. However, this isn't entirely true.
Citigroup moved its co-head of capital markets for EMEA, Atiq ur Rehman, to the post of CEO for the Middle East in January, adding that it was a "priority growth region".
Similarly, Royal Bank of Scotland hired Simon Penney as regional head of its global banking and markets division in MENA, while Rothschild moved Herve Sawko from New York to Dubai to lead its investment banking business in the region.
"We're speaking to a number of international banks about senior appointments in region, which suggests many are looking to grow their operations here," confirms Magdy El Zein, managing director of Boyden Middle East. "It's a slow process, but there are a healthy number of deals in the pipeline."
"Dubai's viewed as a relatively inexpensive alternative for certain functions when compared to London," suggests Matthew Lewis, managing director of Correlate Search. "For example, we're seeing firms beefing up regional research capabilities on the ground rather than running them out of western locations."
