UK
Project finance specialists are in such short supply in the Middle East that the oil-fired trajectory of infrastructure investment in the region risks crash landing.
Local recruiters say there are simply too few experienced project finance people to plan, oversee and execute the US$1.3 trillion worth of oil and gas, petrochemicals or infrastructure schemes lined up by Gulf Cooperation Council governments and companies between now and 2012.
Barbara Van Meir, director of financial services at WoodHamill Ingram, says: “As many teams in the region are expanding, and have often doubled in size over the past year or two, there is an increasing dearth of project finance professionals, particularly in Qatar, Abu Dhabi, and Saudi Arabia.”
The result, says Alastair Chell, banking consultant with Charterhouse Partnership, is that candidates with no regional experience are being recruited from Europe to fill the void and local corporate and structured finance folk are being pressed into project finance roles.
Van Meir tells us she is recruiting suitable project finance expertise from mature financial centres such as London or Edinburgh, but equally from less well-known locations including Johannesburg or Sydney.
The varied backgrounds of candidates makes generalisations on the value of compensation packages difficult, say recruiters. But Chell tells us someone at director or VP level with six years’ project finance experience can command a basic of US$165k to US$250k a year and a benchmark 100% bonus.
But he warns that while firms with deal flow from day one can guarantee bonuses, some start-up shops are struggling to gain deal traction which can leave bonus potential in doubt.
The article does not appear too convincing. There may not be such an acute shortage of skills locally as is being presented.
i highly question the opportunity and the money (if indeed there is that kind of money in the middle east) – there simply isn’t enough deal flow. Even Abraaj Capital – alleged to be the largest so called private equity firm hasn’t got enough deal flow in the pipeline and is trying to buy assets in pakistan of all places. Come one efinancial, stop trying to convince us to go to Dubai and tell us the truth, that gulf experience will destroy your career.
Your going to mid east can only because of:
1. making money
2. taking in new challenges – the capital markets are very primitive
3. You just cannot a job elsewhere
Actually, there are plenty of projects in Middle East, but not many banks or private investment firms willing to take the risk, many lack basic equity investment. Whilst growth has been substantial in recent years, exposure limits for such deals are full. Additionally, there is caution by the smarter experienced risk managers in the market, that a project may fail, which could be the start of collapsing the pack of cards. Dubai is expensive, one Japanese banker today claimed rents in Dubai are more expensive than Tokyo!
here is another thing. friends in financial services in gulf say there is a big discrimination against brown skin. if you are white then its ok. The same attitude when it comes to bonus.
the only reason they are looking for project finance is because they dont want to use their own money for this. the question is, if the project is good, then why not? they have plenty of their own money?
I doubt very much the credibility of this story…
The salaries quoted in this article seem to underestimate the desire and compensation for Project Finance in the Middle East. A top-tier VP with 6 years relevant experience will expect considerably more than $300k for his / her services, this could be why said individuals have problems finding them.
It is true brown people are treated less favourably. Its so funny, we white people treat these dubai/arab folks less favourably in our Europe and yet we are king in dubai. Such a great way of living.
I’m in the UAE at the moment and I can definitely see the validity of this article. Most of you have got the wrong end of the stick – its talking about a lack of project finance experts within the public sector and very specific private sectors, namely Oil & Gas, utilities, and construction – Tom is pretty much on the ball. I think too many of you have been in finance for too long and look at everything job related from a financial services sector perspective! Snap out of it!
I’m not convinced about those salaries though. I doubt very much that London based VPs with 6 years under their belt would move for salaries as low as that. The amount of money there is in the three countries mentioned above waiting to be invested by those governments is sick-making – recent research from a specialist boutique estimates double digit trillions, so please read the first paragraph again without your banker goggles on. Project financing is a very specialist area which most people in financial services are not appropriate for.
I’m in the UAE at the moment and I can definitely see the validity of this article. Most of you have got the wrong end of the stick – its talking about a lack of project finance experts within the public sector and very specific private sectors, namely Oil & Gas, utilities, and construction – Tom is pretty much on the ball. I think too many of you have been in finance for too long amd look at everything job related from a finacial services sector perspective! Snap out of it!
I’m not convinced about those salaries though. I doubt very much that London based VPs with 6 years under their belt would move for salaries as low as that. The amount of money there is in the three countries mentioned above waiting to be invested by those governments is sick-making – recent research from a specialist boutique estimates double digit trillions, so please read the first paragraph again without your banker goggles on. Project financing is a very specialist area which most people in financial services are not appropriate for.
KK you are in UAE, it means you among those desperate finance professionals looking to leave and work in UK. Ive worked in UAE before, these people out there needs us European and American to take care of your business.
I am wondering how on earth can Mr “White guy” write this kind of comments without anyone saying anything. I am maybe a little bit “candid” but I was thinking that being brown or even black in today “efficient” financial markets was not an issue. Even if you are right in what you’re saying, and that the case, there are some way to say these kind of things and instead of being proud about these discrimination you better try to fight against them. I hope that you will nevr find yourself being a victim of these kind of things but maybe it could be good so your attitude will evolve a little bit.
White Guy is just trying to rile everyone up with his ridiculous (and ungrammatical) comments. I don’t know why he would assume that KK is not as “European and American” as he is.
KK sounds like anything but a “desperate finance professional”, his comments are pretty sound (as are Tom’s) – many of the investment opportunities in the UAE are staggering, and those who doubt this would do well to find out more about the region before jumping to easy conclusions (e.g. “the only reason they are looking for project finance is because they dont want to use their own money for this”).
Unfortunately, both of you “White Guy” and “Black IB” are right. White guy is right that the rather inmature hiring practices in Dubai, and perhaps the whole region favor white (European/Canadian/American) people. What a disgrace for humanity, and what a disgrace for these recruitment agencies..and above all, what a disgrace for the local banks/companies giving preferences and paying higher salaries to this white people.
I am graduated from a top-notch business school in USA, I am not white, rather dark-asian looking . ..and though I recognize that people from Europe and America have a good education, they are simply not better than me. Sorry to be so arrogant, having studied and lived with these people give me some insight on how they are. Do not get me wrong, many of my good friends are white, and my answer does not go to the white people getting better-paying jobs, it goes to the Recruitment Agencies..and above to the banks and companies hiring in such terms. You should be embarrased of yourself, and show more dignity, as White Guy say, people in Western countries see arabs are second-class people, and now it happens that you arabs keep with this practice in your own land!
Dubai has its pros and cons
A)Save lots of money(sometimes,see bwlow) and 30 days paid vacation is the biggie
B)Lots of sunshine and oil to power your 911 Turbo is cheap
However
a)Expensive to live if your package does not include housing allowance. You might make USD 100,000 a year, but after school fees, road toll, parking cards, car loan, and rental, you’ll be down to 20k a year in savings if your lucky.Want to rent a villa on the palm?. Read in the paper that some are going for 1m AED per year!.
b)Mortgage rates and home prices are ridiculous. Forget buying. The U.S is the place to buy now btw,great deals!.
c)Lebenese/Arab i-bankers who have more connections do more deals that well trained by the books i bankers. DCF,EPS,NAV have no meaning here. All gas is what this town runs on.
d)Traffic is a killer,and just recently, parking at the DIFC, the main financial centre, has become paid, so prepare to do some rounds looking for a free spot!
My thoughs- Singapore and HK are still the place to be. Want to be adventerous?. Move to either Bombay India or Calgary,Canada. I hear there is a lot of action there.
dubai is good for money booze and cheap xxx. if you are a white skin then you will be treated better than arabs are
Why is efinacial always trying to entice finance professionals to new markets. There is a skill shortage in certain areas because nobody wants to be there. Dubai has a lot going for it but a financier with 6 years experience will probably have a firm base and is not looking to dive into ‘emerging markets.