(MENAFN- Gulf Times) Deutsche Bank AG and Bank of America Corp are among financial institutions seeking to hire traders in Saudi Arabia as the nation prepares to open its stock market to foreign investors, people with knowledge of the matter said.
Deutsche Bank is hiring for stock sales and trading, administrative staff and some junior roles, three of the people said, asking not to be identified as the plans aren't public.
Bank of America is expanding its trading desk, three other people said, while Credit Suisse also plans to hire for equities after losing traders to rivals, another person said.
"Saudi Arabia is a sizable opportunity for the large institutions," Bassel Khatoun, Dubai-based co-head of Middle East North Africa equity at Franklin Templeton Investments (ME) Ltd, said by phone on February 26. "Hiring is happening on the back of confirmation that the market opening is on track." Banks are rebuilding trading teams in preparation for the opening of the largest Arab bourse in the first half after cutting back during the financial crisis. Morgan Stanley and Credit Suisse cut their equities business in Dubai in favor of Saudi Arabia about two years ago, with some traders from the Geneva-based bank then hired by Russia's Renaissance Capital.
Some US banks are trying to poach staff from competitors including HSBC Holdings to fill positions, according to three of the people. The London-based bank has one of the largest teams among international lenders in Saudi Arabia and owns 40% of Riyadh-based Saudi British Bank. Paul Harris, a spokesman for HSBC in Dubai, declined to comment.
Saudi Arabia is "the most significant opportunity in 2015/16," Arshad Ghafur, president of BofAMerill Lynch in the Middle East and North Africa region, said by telephone on March 1. "We have been growing our team strategically over the last three years." The bank moved its frontier market research business to Dubai from London late last year and has increased its sales, trading, and research operations, he said. Sofia Rehman, a spokeswoman for Credit Suisse in London, declined to comment.
"A potential further opening of the Saudi stock market would allow for banks to further grow their businesses in the Kingdom and to implement more resources," Jamal al Kishi, chief executive of Deutsche Securities Saudi Arabia, said in e-mailed comments, without giving details on hiring plans.
The largest economy in the oil-producing Gulf Cooperation Council may open the stock market to overseas investors from April, three people briefed on the plans said in December.
Opening the $542bn exchange may prompt MSCI Inc to include the bourse in its emerging market gauge by 2017, luring as much as $40bn of foreign cash, Schroders Plc. said in July. Investors from outside the six-nation Gulf Cooperation Council aren't allowed to invest directly in stocks and have to get access to the market through equity swaps and exchange- traded funds.
"It's a positive sign that the large institutions are coming to Saudi Arabia and a promising indicator of the institutionalization of the market," said Khatoun. "This region is quite complex to manage from outside so it's vital to have a local presence."
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.