MIDDLE EAST MOLE: The real way to win business in the Gulf
The role of the suitcase banker in the Middle East was never a glamorous one - pack a spare shirt, business cards and passport, then catch the redeye from London to one of the regional financial centres while hoping to avoid catching a cold from the aircon.
Once there, you sit down with Mr Big Local, get straight down to business, leave within 90 minutes and then rinse and repeat this routine for rest of the day. Later check into a swanky hotel, endure dinner with an irritating mid-level colleague and then do it all again the next day before flying home again.
The bad old days
In previous years, this was the typical agenda for numerous suitcase bankers and financial services professionals seeking to do business in the Middle East - it sort of worked, but it mostly irritated the local business leaders and it didn't really make you many friends. A few 'lucky' ones got relocated to the region, got large expat packages, then got canned when things took a turn for the worse and were consequently 'black marked' on return to Europe or the US.
This typical way of doing business in the Middle East was a by-product of the good old days, when bankers' time was tight and when the western professionals had no desire or need to learn how business is really done the region.
Their clients, mostly long-established family conglomerates or government related entities, many of which are still very much around and sitting on dry powder for investments, financing requirements and the like. Most of these bankers are long-forgotten, having never really established real relationships with their so called 'clients', with meetings mostly at some fancy DIFC office (or other financial centre as relevant) or at most, at clients' corporate offices - rather than their homes in the Majlis, where the real business gets done.
Much ado about nothing
But some westerners who made the effort to understand how business is conducted out here. A good friend of mine, let's call him Mr. John Smith, Head of MENA for Mega Bank Corp. moved to the region 5 years ago.
His suitcase banking colleagues were gobsmacked at 3-hour meetings with Mr Big Local where no business was discussed; shisha sessions at midnight where no deals were mentioned; several follow up meetings where again nothing work-related was brought up - again and again over 6 months
Then, suddenly, there was an invitation to the Majlis one Thursday night... "Mr. John, Assalamu alaykum - we are selling some businesses and need your help, you want the job?" The M&A mandate (at 5.0% fee thank you very much) had just been 'won'...and if his institution had a principal investment operation; he also just won the 'auction'...financing - done; hedging - done; research coverage - done; advisor to the board - done, and anything else you may want - just ask.
Those 6 months of adapting to Mr. Big Local's style got John his meal ticket. He quit Mega Bank Corp. and I now see him regularly at Majlis sessions with several of the region's powerful business elite, being updated on the latest political and business developments of the region (and which invariably are unknown to the press or his industry ex-colleagues) and being 'consulted' on their latest venture (as marketed by John's ex-colleagues) - and they are only too happy to line his pockets with large 'consultancy' fees.
Understanding the small things
John made the effort to integrate that few of his colleagues could be bothered to - he didn't call on Fridays; didn't ask how Mr Big Local's family is; didn't go straight to business, kept his business cards in his pocket, took his tie off and didn't stress when meetings were cancelled at the last minute (and didn't set the meeting too far in advance anyway).
Learn a few words of Arabic (even that few make you stand out), don't swear, don't drink alcohol with them (even if you do privately), learn a little bit about their religion - it forms part of the essence of both professional and personal cultures and don't look back at your colleague when I step out to pray.
Many westerners have been burnt and bunched up with the other suitcase bankers for failing to understand even one of these concepts. Those who have been and are able to grasp and remember these, as well as put them into practice regularly and consistently (easier said than done) have and will continue to be successful - ultimately Mr. Big Local did not become big by shear luck - he knows he needs help and he knows you have the skill-set and experience that he needs, just make it easy for him to give you the chance!
Jamal Bahir (a pseudonym) is seasoned senior private equity and investment management industry veteran based in the Middle East and Europe. He is an advisor to several ruling and trading families from the Middle East, as well as select European governments and private equity funds, advising on their investment, financial and regional political strategy. The author may be reached on jamal.bahir@gmail.com.
