Should asset managers now be considering a move to Qatar?
Qatar has long conceded the number one spot as the preeminent Gulf financial centre to Dubai and is instead looking to carve a niche as the regional centre for asset management. So far, however, job opportunities are still thin on the ground.
There have been some recent developments to boost Qatar’s ambitions to develop its asset management industry. Last week, Credit Suisse formally announced its joint asset management venture with Qatar Holding, Aventicum Capital Management, and appointed Hashem Montasser, previously head of asset management at EFG Hermes, as CEO and CIO of the operation.
QInvest’s takeover of EFG Hermes has meant that jobs have been lost in its asset management division, but Barclays has been shifting portfolio managers out to Doha after Qatar co-invested with its natural resources private equity fund and Axa Investment Management has a small distribution team in the Peninsula. Then there are other local players, with Qatar National Bank, Al Rayan Investment and Amwal all expanding in this area.
A spokesperson for the Qatar Financial Centre Authority (QFCA) cites the 10% corporation tax, business-friendly environment and “world-class” regulatory regime as selling points for attracting international asset managers. However, so far just six firms are based in the financial centre.
Nigel Sillitoe, chief executive of Middle Eastern asset management research firm, Insight Discovery, says that they expect more firms to develop a presence in Qatar as companies are required to gain a local license in order to do business in the country.
“Currently, few international fund managers have portfolio management teams based in either Qatar or Dubai. Usually it’s three or four people – sales, distribution, compliance and perhaps an office administrator,” he says. “This could change if Qatar’s asset management industry reaches critical mass, but so far large teams are restricted to the local players.”
Stuart Smith leads the banking and finance team for recruiters Reed in Qatar and says that asset management roles are still few and far between. When they do emerge, most firms favour regional experience, rather than looking to recruit from Europe, the US or Asia, he says, which usually means either recruiting Qataris or swaying expats across from Dubai.
Much of the focus, therefore, is on what will happen in the future. As well as wanting to be close to the local sovereign wealth funds, there’s one big development that could attract more asset managers to Qatar – the infrastructure investment as a result of the 2022 in the country.
“There are huge opportunities for asset managers arising from Qatar’s massive investment in infrastructure. Projects worth over $200bn are due to be completed in the next 10 years,” says the QFCA spokesperson.
Sillitoe agrees that the long-term growth prospects for asset managers in Qatar are good, largely because of the GDP growth – 6-7% this year – and the high savings rate in the country. The savings rate in Qatar is 58%, against a global average of 23%.
One challenge that remains is persuading expat asset managers to lay down roots. It’s easy to commute between Dubai and Qatar, and anecdotal evidence suggests that many take full advantage of this.
“Currently, there’s more demand for expat financial services professionals to come into Qatar than move out to Dubai, but there’s still a flow of people looking for roles in the DIFC,” says Smith.
