The departure of key bankers at Morgan Stanley and Goldman Sachs in Qatar shows the renewed appeal of local banks

International investment banks appear to be losing their allure in the Middle East, even in the comparatively buoyant Qatar market, with key deal-makers instead seeking the security and greater pay potential at regional banks.

When both Goldman Sachs and Morgan Stanley, organisations both known for the fierce loyalty of their employees, lose key staff in the region it’s time to start worrying. Khalid al-Subeai , Morgan Stanley’s Qatar head, has left to join Barwa Bank and Goldman’s chief executive in the Peninsula, Tamim al-Kawari, has also resigned to join QInvest, according to Reuters.

Both job security and bonus potential among the international banks in the region has diminished this year as they scale back globally and struggle with an arid deal landscape in the Middle East. Recent redundancies in the Gulf – at Deutsche Bank, Credit Suisse and Nomura – show that investment banks are now including senior employees in the cuts, rather than simply paring back juniors as was the case in previous cost-cutting initiatives.

By contrast, Qatar’s banks – notably Qatar National Bank – have been expanding and willing to pay well for the right people. And, as the 60% pay increases for Qatari nationals announced last year demonstrates, they’re able to pay well when needed.

Part of the motivation for these big ticket hires appears to be Qatarization, with Reuters pointing out that the “grooming the young talent to take up bigger roles” would be aided by the recruitment of such experienced professionals.