Saudi banks recruiting commercial bankers as lending defrosts

Banks in Saudi Arabia are tipped to expand their lending activities this year after a period battling bad loan impairments and are set to build their teams as a result.

A cloud has been hanging over Saudi banks for over 18 months in the form of the Ahmad Hamad Algosaibi Company - one of the oldest and most respected family conglomerates in the kingdom. The restructuring of its debt has forced many local banks to make provisions against potential losses and lending has been muted as a result.

But after fourth quarter results exceeded analyst expectations, and positive noises emerging from the central bank governor Muhammad Al-Jasser, lending is anticipated to increase by 20% on 2009 levels, he suggests.

From a recruitment point of view, there's a need to rebuild the commercial banking teams that have been shrinking over the last 18 months.

"We're certainly planning to recruit for our commercial banking team, as well as for our retail business, and I'd expect many banks to be doing the same this year," says Ian Thomas, head of international recruitment at Banque Saudi Fransi. "It's still focused, rather than aggressive, hiring, however," he adds.

Unlike investment banking, which still relies on a high proportion of expat expertise, the commercial banking sector is dominated by local candidates. Thomas estimates that around 80% of the workforce in this space are Saudis, on the back of strong localisation efforts in the industry.

"But it's still a relatively small pool of talent, and movement is not as great as it once was. Recruitment remains a challenge," he adds.

Although recruiters agree that Saudi banks are hiring again, they insist that the emphasis remains firmly on quality over quantity.

"There's always a lot of competition for good Saudi commercial bankers," says Jonathan Gould, manager, financial services and finance division at Morgan McKinley in Dubai. "Banks want Saudi nationals, with multiple language skills and a good network."