Has UBS lost its global head of Islamic finance in Dubai?

Islamic finance is the place to be as an investment banker in the Middle East. While most deal activity remains in the doldrums, debt capital markets activity in this area is booming. Why, therefore, has UBS let its global head of Islamic finance go?

Dr Hussein Hassan took up the role of managing director, global head of Islamic finance and head of MENA securities structuring (based in Dubai) at UBS in September year. He joined from Deutsche Bank, which has been relatively successful in the Middle East Islamic investment banking space, where he was head of Islamic structuring.

Sources tell us that, less than a year into the role, Hassan is leaving the organisation. UBS didn’t respond to our requests for comment, and the reasons for his departure remain unclear (although our sources suggest redundancy).

It’s fair to say that UBS hasn’t enjoyed the success in Islamic banking that it might have expected after making an investment in such a senior banker. Year-to-date the value of Islamic bond deals stands at $18bn, according to figures from Dealogic, up from $3.4bn at this point last year.

HSBC remains top of the pile, with a 44.5% share of the market, while Deutsche Bank comes in second with 11.2%, according to Dealogic’s figures. Standard Chartered and Citi are also doing well, but UBS doesn’t feature at all.

Despite redundancies elsewhere in the world, headcount in UBS’s MENA operation is still increasing; 172 people are employed there at the end of June, compared to 154 at the same point in 2011.

However, while the bank is still recruiting in the region, it does appear reluctant to hang on to senior staff when business isn’t being won. Last year, Mohamed Sammakia, chief executive officer for Saudi Arabia and Chris Niehaus, its head of investment banking for the Middle East, both relocated back to London.