Are job cuts going to haunt the UAE banking sector again?

Firings are picking up pace at banks across the world, with industry professionals saying more rounds are set to come. The big question for those in the UAE is whether the banking sector here will be a part of this round of job cuts – a phenomenon that seems wide spread everywhere else? Headhunters and recruitment experts in the country believe that even though the regional banks may not be totally immune to global happenings but any major culling does not seem in sight.

“It is a bit too early to comment. However, world events will have a bearing on the local economy here. That said, the regional banking sector has proven to be resilient, so even if there were job cuts, in context, they would be minimal, and perhaps off-set with new opportunities being created locally do to home-grown demand/stimulus,” Hasnain Qazi, Middle East Business Manager at Huxley Associates told Emirates 24|7.

According to Shane Phillips, MENA Regional Practice Leader, Financial & Professional Services at Stanton Chase, job cuts will happen in some areas whereas other sections in the banking sector will see growth.“All the big multinationals will be seeing cut backs in the front office and non-core business lines. We can see this happening at brands like HSBC, Goldman Sachs, BofA, and others. While this is happening, the MNCs will be growing their middle offices in the areas of operations, IT, risk, compliance and legal. Big growth areas will be risk and compliance over the next 12 months while the front office will be clawed back. 

“Other pockets of opportunity will be in the regional banks in the UAE as they neither have sub-prime exposure nor heavy mortgage exposure. Most regional banks are driving a growth agenda for the second half of 2011 and into 2012,” he explained.

Peter Greaves, Director, Head of Financial Markets at McArthur Murray sees the ball rolling. “My feeling is it’s already happened within the international banks, maybe further trimming will be required if the bottom falls out of Europe, dragging the US with it! We’ll know soon enough! A number have/are moving staff to South Africa due to costs plus Africa is today’s strategic focus. There are a few international banks in limited growth mode though more private banking than investment banking where deal flow is still limited. In general, there’s less focus on MENA today where it’s still tough to raise capital.

"In asset management, GAM (global asset managers) are relocating back to London. With a client focus on SWF’s, this makes sense, there is as much, if not more credibility to fly in from London these days & GAM is a good name. Question is - will there be others?” he told this website.

“I don’t see the axe falling on the regional banks. Here, we have a mix of those with their own problems and exposure to regional debt issues and those in a strong position to take advantage and grow. It’s as always, all about money, if you’ve got it, flaunt it!” he added.

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