MIDDLE EAST MOLE: The secret plans hatched during Ramadan

In theory, Ramadan is a time dedicated solely to reflection, family and friends - but finance professionals in the Middle East know better.

It's also the time where some of the most important business and networking at the highest levels take place in the Gulf. Whether it be the powerful local's 20-man VIP-only private Majlis Suhoor at 2am, the huge Ramadan tent at the Emirates Palace or the corporate events at the Jumeirah Beach Hotel, anyone who is anyone (or aspires to become someone) was busy (re)connecting after the summer lull.

This year especially saw a pick up in back-to-back networking events during the Holy month among investment banks, law firms, advisors, consultants, family offices, powerful and influential locals and various royal offices

Importantly, as is the case every year, Ramadan set the tone of the business environment for the rest of the 2010 - what industries, themes, investment professionals and institutions are hot and which remain in the ice cold freezer of the global recession.

Interestingly, the number of private Iftar and Suhoor events hosted by powerful individuals saw a marked pickup, whilst corporate events (more social than anything else) were certainly less prominent this year than last.

A new attitude

In the pre-downturn years, the Majlis during Ramadan was abuzz with talk of the latest mega deal, trophy-acquisition or international expansion plans. Since late 2008, however, talk has been mostly social, filled with nods of agreement about how bad things are and how it would all be OK in the long-term.

This year was different - by far and away the overriding message from the nightly feasting was that, for the first time in a long time, sentiment has improved and people are willing, albeit timidly, to put money to work. Some banks have new headcount targets, search firm mandates are up across the region, private investment offices are actively seeking new deal opportunities and even some private equity funds have been muttering something about deploying capital.

Smaller deals for the select few

Another message was the old adage that 'small is beautiful' - the mega deals, with some exceptions from the sovereign funds, are still dead, with high-quality established SMEs being the way forward.

The stock of suitcase bankers has also plummeted further - only trustworthy market participants who have become part of the furniture and stuck it out during the downturn were visible at the more select Suhoors in our homes.

Specifically, we awarded investment mandates to two types of investment professionals: one the investment office of an established local family, the other a seasoned Western investment professional with strong entrenched relationships who understands the real way of doing business in the region.

The tone generally was upbeat, but hot air is not only confined to the sweltering temperatures outside the Ramadan tents - this region is known for a lot of talk but little walk.

While my team and some of my fellow regional businessmen are certainly upping the game and putting our money where our mouths are, how the investment and M&A landscape unfolds over the next few months will be closely watched. After a month of overeating, it is time not only to exercise our bodies but also our brains and investment muscles to execute the opportunities we have all been talking about over the past month.

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.