Credit Suisse is shifting investment bankers from Dubai to Qatar
Qatar was a sweet spot for Middle East M&A activity throughout 2010, and in a sign of its growing importance, we understand that Credit Suisse is relocating the majority of its front office investment banking staff from Dubai to the Peninsula.
Seven of the team of 10 investment bankers based in Credit Suisse's Dubai office are due to move to Qatar by June, according to sources. The bank declined to comment.
Credit Suisse is, of course, fairly unique in its close ties to Qatar. As well as the 10% stake the Qatar Investment Authority (QIA's) took in 2008, Qatar Holdings more recently subscribed to the bank's $6.17bn contingent capital bonds issuance.
More significantly, perhaps, the Credit Suisse is now Qatar's investment bank of choice and it's been involved in some of the bigger deals in the region.
The bank was fifth in the Middle East M&A league tables in 2010, according to figures from Dealogic. Qatar Holding's $2.2bn acquisition of Harrods was overseen by Anthony Armstrong - formerly head of Middle East head of M&A at Credit Suisse, who moved to Qatar Holdings last year - and advised upon by Giuseppe Monarchi, Credit Suisse's head of M&A for EMEA.
But Credit Suisse's team on the ground is still relatively small, and Rami Touma, its head of investment banking in the state, is instrumental in managing its relationship with government entities in Qatar.
The decision to switch investment bankers from Dubai may be a strategic decision to be closer to deal activity, but it could also feasibly come from pressure from Qatar. The state has, after all, been trying to attract more investment bankers in recent years, and if Credit Suisse develops a significant presence, other banks could follow suit.
However, it's questionable whether there will be an influx of willing volunteers willing to forgo the Dubai lifestyle for the more sleepy existence in Qatar. Recruiters are already reporting instances of Credit Suisse bankers looking for new positions elsewhere.
