Why one rain-maker’s departure shows why the Gulf is not the place to be for investment bankers

In 2009, when Standard Chartered hired David Law to co-head its wholesale banking unit for the Middle East, North Africa and Pakistan in Dubai, it was considered something of a coup.

Law had moved out to the region from London in 2008 to oversee Morgan Stanley’s Middle Eastern investment banking operations, and by all accounts was something of a rain-maker. So, now that he’s moving to Standard Chartered’s Johannesburg office, what does it say about the prospects for investment bankers in Dubai?

Law’s full job title when he was originally recruited was managing director and regional head of origination and client coverage for MENA.

Investment banking deals have been thin on the ground in the Middle East for some time now, and in the first quarter of 2012 M&A volume fell by 40% on already anaemic levels. Despite an increase in debt capital markets, the outlook remains generally bleak for investment banks in the region.

Law will be replaced by Morad Mahlouji, who will be the regional head of origination and client coverage for the Middle East and North Africa, but his departure sends out a clear message – the Middle East is not the place to be for prominent investment bankers.

Last year, Barclays also relocated 120 back office staff from Dubai to a new office in Johannesburg.