Five hiring hotspots in the first quarter

Now that we're into February and most banks have paid bonuses for 2010, there's a better picture of where financial services firms in the Middle East are looking to expand this year.

As a general point, it's already looking a little better than last year, but based on conversations with regional recruiters, here's our opinion on where the bulk of the jobs are emerging currently.

Fixed income sales

More Middle Eastern firms are looking to the debt markets for financing. A recent example includes Emaar Properties, which executed the first public offering in the region through its $500m sukuk and appointed HSBC, Standard Chartered and Royal Bank of Scotland to run the deal.

Generally, though, sentiment around the region's debt markets is picking up, and firms are recruiting to get in on the act. Nomura recently added four to its regional fixed income team, Standard Chartered has been recruiting and we understand Macquarie is currently building in this area.

"Global banks are building their sales and origination teams, particularly in fixed income," says Bill Allum, managing director at headhunters Execuzen. "Very few banks have adequate resources in this area to take advantage of new opportunities when they emerge."

Private banking

The race to gain a bigger slice of the growing Middle East wealth management market has continued unabated going into 2011. Citigroup, HSBC and RBS Coutts have already made key hires, while the JP Morgan has stated its intention to post double digit growth in its regional private banking business this year.

"International banks' desire to develop relationships with the region's wealthy individuals continues, which is spurring recruitment of top private bankers," says Ally Ho, head of financial services - Middle East & Africa at Pedersen & Partners.

Global transaction services

The importance of this relatively low profile aspect of banking was highlighted by the Wall Street Journal recently, which profiled Citi's global transaction services business - it has posted a compound annual growth rate of 24% since 2006, even as other divisions struggled during the financial crisis.

The likes of cash management, trade finance and other back office services are carried out on these divisions. Banks to look out for in the Middle East include Citi, Deutsche Bank, JP Morgan and Royal Bank of Scotland, as well as local banks like Abu Dhabi Commercial Bank and National Bank of Abu Dhabi.

"We've placed two heads of cash management since the beginning of the year, and are seeing lower level roles begin to emerge," says Claire Swann, senior consultant banking and finance at Hudson. "We'd expect this to be an area of expansion in 2011."

Risk and compliance

Financial services firms in the Middle East have been playing catch up when it comes to achieving Western standards of risk and governance, which means the ongoing recruitment spree in these areas has continued into 2011.

"We're seeing roles in credit risk, and to some extent in operational and market risk," says Jonathan Gould, manager, financial services and finance division at Morgan McKinley in Dubai. "Banks are lending again, which is driving hiring, and some recent senior hires in compliance suggest this is likely remain a growth area."

Qatar and Saudi Arabia

If M&A bankers are looking to move this year, it's best to set their sights on either Qatar or Saudi.

The 2011 Middle East M&A Barometer, produced by Zawya and M: Communications, is predicting a 20% uptick in deal activity this year, but the bulk of activity is likely to be down to Qatar's World Cup developments or from the Saudi mid-market, it suggests.

"A number of international banks have been looking to add to their Qatar and Saudi offices so far this year, either through internal relocation or external recruitment," says Steve Barker, business manager, investment banking at Huxley Associates in Dubai.

Expect recruitment to be selective and demanding, however. Most banks are looking for Arabic speakers with at least five years' MENA experience combined with a stint in either London or New York.