Alternative employment options for redundant brokers in the UAE

Financial services recruiters in the UAE are being flooded with CVs from brokers, following a rash of closures and copious redundancies this year.

Unfortunately, there are few options within MENA-focused brokerages in the UAE, so what are the alternatives?

Last month, HSBC revealed it was stopping its retail brokerage operations, Al Mal Capital announced it was winding down and Shuaa Capital confirmed that Walid Shahabi - head of Shuaa Securities, its broking business - had resigned despite the bank "increasing market share". EFG Hermes Securities Brokerage, which claims to be the biggest in Egypt and Dubai, saw its brokerage executions decline by 31% in Q3.

These are just the latest examples of the woes hitting brokerage firms in the UAE, which have suffered in the wake of investors shying away from local equity markets. There are now just 59 brokerage houses in the UAE, down from 110 last year, according to the Emirates Securities and Commodity Authority. It has also been calling for more consolidation in the sector.

"It's an incredibly difficult time to be working in the brokerage space, and even the larger firms in Saudi Arabia have little appetite to hire currently," says Peter Jones, director of Middle East-focused recruiters MRK Consulting. "Other financial sector employers are also being very specific in their requirements, which makes a career switch even tougher."

Many brokers have simply cut their losses and moved out of the region, suggest headhunters with an international focus. However, there are other options.

"Sales related roles within the banking sector are an obvious alternative for brokers currently, particularly in regional institutions where there is still a reasonable amount of recruitment," says James Collin, business manager, banking at Reed Specialist Recruitment in Dubai. "However, a number of brokerages are based in the Middle East, but trade internationally, and are offering opportunities."

Similarly, some private banks are recruiting brokers in the hope that they can leverage their relationships, he suggests.

However, if brokers or dealers want to stay within their field (and the region), the best bet is looking towards Qatar.

Last year, Qatari banks were granted permission to open brokerage arms and a string of large regional players have been hired people for these new divisions. For example, Qatar National Bank launched its brokerage subsidiary, QNB Financial Services in May, while Al Khaliji has been building its team since launching a brokerage in July.

Don't expect a huge number of these roles, however, and recruiters suggest competition is incredibly tough. Employers are also demanding a minimum of four years' experience.