GUEST COMMENT: The poaching frenzy in Gulf wealth management
Wealth management has stood out as being something of a hive of recruitment activity within the Middle East financial services sector recently. However, with talent on the ground limited, many banks are chasing the same pool of people.
The motivations for international banks increasing their wealth management presence in the Middle East are obvious: wealth continues to expand; the region is still relatively underdeveloped and being on-the-ground presents an opportunity to gain greater access to high-net-worth individuals.
Part of the difficulty in attracting talent is that the Middle East remains a difficult place for private bankers from developed markets to cover. Having a physical presence in the region doesn't guarantee a successful business, but possessing a 'little black book' with access to the right people does.
Much of the wealth is centralised in family offices, and having a strong and trusted relationship with these firms is key to success. Such private bankers are a rare breed, however, and a highly sought after commodity by multiple global banks.
If banks manage to get a foothold with these family offices, it gives them an opportunity to leverage their relationship to sell more sophisticated products and services to key players in the region.
The result is that there's an old-fashioned 'war for talent' emerging in this market, with wealth management firms fighting over the very best people.
In April, Deutsche Bank unveiled Serene El Masri as its head of private wealth management for the MENA region, joining from BNP Paribas. Mark Winzenried joined Lloyds TSB Private Banking from Arab Bank while Abu Dhabi Islamic Bank has just named Stuart Crocker as head of private banking from HSBC.
Contacts in the region are even more valued than specific experience within wealth management. In May, UBS hired Albert Momdjian, previously head of investment banking for MENA at Credit Agricole, for a senior wealth management position.
Another interesting issue in this market is that when a bank recruits a senior hire from one of their competitors, often talented team members will follow to continue working with that person. As a result, seasoned private bankers usually bring a team of 2-5 trusted people with them who are fast on the way to becoming the sought after wealth managers of the future.
The downside of all this is that the Middle East remains a hard place to break into for those wealth managers with aspirations to move to the region. But, for those in the privileged position of being among the elite few, it's currently a very good time to be in wealth management.
The message for wealth managers seeking a move to the region is to begin cultivating a MENA client base as soon as you can. It can take time to build solid, trusting relationships and the sooner you invest in them the sooner you can reap the rewards. Much 'book' growth can be based on referrals from existing customers, so you can grow your client base organically once you get it started, as long as you can meet and exceed the needs of your clients.
Jonathan Gould is manager, financial services at Morgan McKinley in Dubai
