Revealed: Why investment bankers heading to UAE

Many investment bankers are heading to the UAE and the GCC because of an increase in the number of opportunities for these professionals in the region.

According to Sovereign Wealth Fund Institute, an increasing number of sovereign wealth funds and other large public institutional investors have boosted their activity in direct investments, participating in acquisitions globally.

And, a big portion of those deals and capital raises are occurring in the GCC, attracting a number of investment bankers and they are seeing opportunities in the Middle East M&A market.

The figures released by SWF Institute show an increase in the transactions taking place. In 2013, the institute’s database shows that GCC-based sovereign wealth funds made $20.2 billion in direct transactions, an increase from $18.32bn in 2012.

Big banks are also expanding in the region, opening more opportunities for bankers here. For example, JP Morgan Chase is expanding in the Middle East, trying to keep up with others in the competition like Lazard.

Other US banks such as Charlotte-based Bank of America Merrill Lynch (BAML) and Moelis are also in the fray. JP Morgan was one of the joint global coordinators and bookrunners in Emaar Properties’ $1.6bn initial public offering, as per SWF Institute.

According to efinancialcareers, investment banking recruitment is picking up in the Middle East. “So far, the only international investment banks really talking up expansion in the region are Renaissance Capital, JPMorgan and Natixis, which intends to bolster headcount by 50 per cent this year. The volume recruitment is still within the local institutions,” says the website.

Local banks are looking to increase their headcount in this area. Big names that feature here are Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, National Bank of Abu Dhabi and Emirates NBD.

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