Compliance professionals are about to become a hot commodity in the Gulf.

Right now, headhunters say only the biggest banks like HSBC have large compliance departments in their Gulf operations. But this is all set to change as smaller banks adjust to new international banking regulations.

“Local banks have to increase their demand for compliance people… I expect the market is going to grow very quickly,” says Samar El Gazar, managing director of Dubai recruitment firm Leaders Solutions.

El Gazar says the impetus for hiring at smaller firms is the Basel II international banking regulations, which are due to be implemented in phases, starting this year.

Regulation and compliance rose top of international banks’ agendas in Dubai following a minor crisis in 2004 when the heads of the local regulator, the Dubai Financial Services Authority, were unexpectedly dismissed. Headhunters say the large international banks in the emirate made a visible effort to raise compliance standards as a result.

James Mackenzie, managing director of Mackenzie Executive Search in Dubai, says the effect was a noticeable increase in hiring.

“Demand has been increasing since everyone got to know about the new compliance rules,” he says.

Now the smaller banks need to hire to keep up. El Gazar says a middle-level compliance professional with five or six years’ experience can now expect a base salary of about US$100k, plus a 50% bonus. Pay is expected to rise due to the shortfall of talent.