Is investment banking currently beyond Emiratis?

Localisation efforts in the UAE financial sector are still heavily focused on the retail banking sector, with few Emiratis viewing investment banking as a viable career path.

The thorny issue of attracting locals towards the private sector is a debate that has been raging for some time now, with Emiratis making up just 1% of the workforce, according to experts' estimates.

Despite this, banks regularly wax lyrical about their graduate schemes designed to attract and develop more locals, with the likes of National Bank of Abu Dhabi, First Gulf Bank and Emirates NBD increasing quotas and international firms offering better pay to sway Emiratis away from lucrative government posts.

But much of this recruitment remains limited to retail or corporate banking positions, and investment banking in the region remains largely the preserve of expatriates.

The scale of the problem was pointed out recently by Majed Al Mesmari, a UAE national and head of financing solutions at Rothschild Middle East, who said he knew no other senior Emirati investment banker.

"It is still quite disappointing that there isn't effective awareness programmes for ... Emirati graduates to recognise the world of banking beyond retail banking," he told Reuters.

So, why the reluctance to move across to investment banking positions?

AbdulMuttalib Al Hashimi, previously worked for HSBC Global Markets before setting up Next Level Management Consultancy, which focuses on recruiting and developing Emiratis. He believes there is a cultural issue.

"Working in investment banking isn't perceived as a reflection of success, as it is in Western markets," he says. "Emiratis can see peers and role models within retail and corporate banking, which is something to aspire to. Investment banking is seen as something that requires a high degree of skill, long hours and a Western education. It's not an attractive prospect."

There's also the fact that government quotas for Emiratisation don't apply within the DIFC, which is where the majority of investment banks in the region base themselves.

"Most investment banks want red brick or Ivy League educated people with a depth of experience and a wealth of relevant skills. Unfortunately, most local candidates don't fit this profile," says Jonathan Gould, financial services consultant at recruiters IQ Selection.

One of the obvious ways to tackle this shortfall is to address it at a graduate level, with investment banks making greater efforts to attract talented locals and train them up to work in the industry.

"Sadly, few firms are making efforts to address this," says Al Hashimi. "Most open days and recruitment fairs for Emirati graduates still look to attract people to retail banking roles and there remains a lack of awareness about investment banking. There's even a lack of knowledge about how much it can pay, with many graduates believing the saturated public sector to be more lucrative."