Prospects for Middle Eastern financial services recruitment in 2013

2012 was something of a watershed year for the Middle East financial sector. On the one hand, it was when global investment banks rethought their strategy on the region and started to retrench, but it was also a period when its appeal increased to internationally mobile financial professionals. What does this year hold?

We’ve spoken to financial services recruiters in the Middle East to gauge their opinions on how 2013 will pan out. Compliance and risk are likely to remain hot, but the investment banking landscape could change dramatically.

Bill Allum, managing director, Execuzen executive search

“The big theme for 2013 will be the domestication of the Middle East investment banking market. We’re expecting international investment banks to continue to retrench this year, and the large regional banks will continue to expand into the space left behind. We’re already witnessing local banks skilling up to increasingly move into DCM and other investment banking activities and expect this trend to accelerate this year.”

Magdy El Zein, managing director, Boyden Middle East

“We expect to see more senior financial services talent in Europe orchestrating a move to the Middle East, but at the same time there’s likely to be limited movement within the region itself since employers’ requirements remain relatively subdued.

While investment banking will remain quiet, we’re anticipating continued activity in private banking, particularly within the large regional family offices. Generally, local institutions will be more active than international firms, and I wouldn’t be surprised to see further redundancies within the large global banks at the end of the first quarter after the bonus season.”

James Maidlow, manager, Robert Half Financial Services (UAE)

“Companies under pressure to do more with less are expecting employees to be both specialist and generalist, demonstrating high-level experience and knowledge across multiple areas.

Many organisations are looking to expand their operations, investing in profitable areas as well as increasing headcount to manage critical initiatives such as risk, compliance and regulatory. In an already tight candidate market, companies may be challenged in finding the requisite talent.

The Eurozone crisis has prompted more expatriate financial services professionals to look to the Middle East, with audit, compliance, risk and regulatory specialists seeing the strongest demand and remuneration prospects. Companies are looking for candidates who have worked in a developed market and can bring their outside expertise – particularly in Basel III, AMA and sanctions – to the local marketplace.

With a decrease in the number of financial products within the region, investment banking within the multinationals is less prominent, particularly in areas such as equities. Instead we are seeing growing demand in rates, FX and fixed income.”

Stephen Barker, director of financial services, Michael Page Middle East

“International banks have paid hefty fines to regulatory bodies this year so we expect to see roles created within compliance, anti-money laundering and statutory reporting and risk in 2013.

Brought forward from 2012, Emiratisation will continue to be a priority along with expansions of the retail and corporate banking divisions. Within capital markets, banks in the region are observed to be focusing on emerging and European markets and as a result opportunities for coverage bankers are expected to surface.”

James Collin, senior consultant, Morgan McKinley UAE

"There is still a need for debt financing and with low interest rates on offer from the banks, corporations who have been careful over the last few years may look to take advantage of good deals in the market. This will be helped by increased government spending that has been promised in the UAE, Qatar, Saudi Arabia and Kuwait, as well as emerging opportunities for financing in Iraq and Libya.

We are not expecting any major job cuts this year, I think most banks have retrenched their businesses and therefore it is not likely that any major cut backs will happen in first half of the year, with many analysts and recruiters feeling buoyant about a possible resurgence in H2 2013."