Even if you lose your job, the best option currently may be to stay in the Gulf

If you're working in an international bank in the Gulf it's looking pretty grim. Senior bankers are being pulled back to other regions, teams are being cut or entire divisions are being closed down. However, despite this, the best decision currently could be to stay in the Middle East.

This may seem like a slightly odd observation; investment banking activity shows no sign of picking up any time soon and few firms are expanding. However, by staying in the region and gaining precious experience, you're likely to be in demand when things get better.

"Investment banks always overshoot," Florence Eid, founder and chief executive officer of Arabia Monitor, a research and advisory firm, told Bloomberg. "There were too many bankers here at the height of the boom and the current retraction is also too aggressive. This region is not going to fall off the edge of a cliff and still needs bankers."

One recent example of bankers who have stayed in the region is that of Credit Agricole's regional M&A team, a function that was relocated back to Paris in September. Four ex-employees of the French bank - Kanhaiya Rathi, Kawtar Benkhraba, Pravin Chelluri and Rami Barazi - have all rejoined their former boss, Albert Momdjian, at UBS, according to reports.

"Many bankers have bought into the lifestyle here, and are reluctant to relocate," says Peter Greaves, director of financial markets at headhunters McArthur Murray. "People also have children in schools, have bought property or simply enjoy their tax-free status. There may not be many career opportunities here currently, but that will be a short-term phenomenon."

There's also the fact that many investment bankers are witnessing the jobs carnage in Europe and the US, as well as realising how difficult it is to break into Asia, and deciding it's best to chance their arm and try and find a new opportunity in the Middle East, suggests Mark Swan, director, MENA at Principal Search.

New opportunities for investment bankers are currently scarce, but some firms are taking the chance to build their regional teams. Sources suggest that Russian bank VTB Capital is looking to recruit 3-4 senior bankers, while independent investment bank Jefferies has highlighted the Middle East as a region where headcount is increasing.

Meanwhile, both JP Morgan and UBS are blending their investment banking business with wealth management and this is creating new positions.