Saudi banks take advantage of Bahrain's distress
Saudi banks are actively recruiting financial services expatriates, taking advantage of executives' reluctance to work in Bahrain since the Arab Spring uprising began 18 months ago.
Saudi has ambitions to expand its financial sector, as plans for the huge new financial district in Riyadh demonstrates, and its reputation as a hardship posting for expats has softened over the past couple of years. With Bahrain being given a wide berth, banks across King Fahd causeway in Saudi Arabia are sensing an opportunity to lure expats themselves.
“There’s still a lot of hiring in Saudi in everything from trade finance, cash management and investment banking and banks in the kingdom are specifically targeting expats in Bahraini institutions,” says Matt Weldon, director, banking and financial services at Gulf Connexions in Bahrain. “There’s always been a flow between the two countries, but Bahraini institutions are struggling to keep hold of key employees.”
Recruiters say local institutions such as Banque Saudi Fransi – which we understand to be hiring for around 15 roles currently – are attempting to convince expats disillusioned with life in Bahrain to make the move across.
Bad memories
It’s not just the memories of working in a city in the throes of an uprising, plenty of bankers in Bahrain had their hands burnt by redundancy. While Credit Agricole, BNP Paribas, Robecco and Societe Generale relocated functions to Dubai last year, local institutions like Arcapita and Gulf Finance House have downsized. There may be more cuts to come: mergers between local institutions Capinvest, Elaf Bank and Capital Management House will undoubtedly result in redundancies. So will the proposed tie up between Ithmaar Bank and First Leasing Bank.
Recruiters in Bahrain are, however, more upbeat than they were last year. James Collin, senior consultant in the banking and financial services division of Morgan McKinley’s Middle East division, says that the “deep roots” of Bahrain’s strength of a financial centre have ensured that international institutions continue to develop their presence there and that large local banks are recruiting too.
Citibank is hiring 52 people in Manama, PineBridge Investments set up its regional headquarters in Bahrain and has promised to expand, as have groups like as have groups like Notz, Stucki & Cie and Altaira Asset Management.
Local institutions like Investcorp and Arab Banking Corporation are also said to be hiring – and are interested in expats according to recruiters.
Expats spurn Bahrain
Many expatriates, however, aren't interested in working in Bahrain, recruiters say, even when offered more money. While Bahrainis make up around 65% of the banking workforce in the kingdom, the financial sector remains heavily reliant on expats for senior and more specialist functions – including front office investment banking and risk and compliance.
“We recently had a head of compliance position, which would have been incredibly difficult to source from the local market,” says Weldon. “However, even when a significant uplift in pay was offered a number of good candidates already working in the region turned it down.”
The head of human resources at a large Bahraini bank agreed expats are staying away. In their absence, she said they’re investing more in training and developing Bahraini nationals so that they can fill senior roles themselves.
