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Time to migrate to an emerging market?

New markets have stood up well to the credit crisis and most banks are still expanding local franchises. Is now the time to go emerging?

Based on rising oil prices, soaring Middle East M&A, and banks’ untrammelled enthusiasm for all things East European, the answer is probably yes.

According to Bloomberg, Persian Gulf states have spent US$68bn on overseas acquisitions this year (including Abu Dhabi’s recent purchase of a 7.5% stake in US private equity firm Carlyle Group) and with oil prices expected to remain high, the GCC M&A pipeline is unlikely to dry out any time soon.

Banks are equally keen to capitalise on the unreconstructed economies of Eastern and Central Europe. Recruiters in both the GCC and Russia say there’s still plenty of hiring – Goldman has acquired a licence to operate in Qatar; Citi has bought into equities in Turkey; and Carlyle is pushing into Poland.

There are doubters, however. Back in July, James Montier at Dresdner warned that over-valued emerging-market equities showed the degree to which investors had lost touch with reality. And if there is a widespread rout, there’s always the chance that banks will ditch their furthest-flung outposts first.

Let us know what you think – is a career shift to an emerging market a clever hedge against redundancies at home, or is it the last-ditch option of bankers whose careers are flagging elsewhere?

Comments (10)

Comments
  1. Top tier banks are going to stop hiring in the CIS – we’re already seeing global headcount freezes imposed. Russian banks, there’s no problem though.

  2. All the macro statistics are moving in favour of the emerging world. The younger generation will need experience of emerging markets if they want to get ahead. My children are not going to get very far, whoever they work for, if they haven’t had experience of China, Russia, India, or one of these big markets. Everyone is pretty much of the view that in 10 or 15 years time you have got to have emerging markets experience on your CV.

    Ian Gomes, Head of Emerging Markets, KPMG Reply
     
  3. Does this trend work in other way? For example, I have 8 years of industrial management experience in Russia plus I’m in the middle of doing an EMBA at Ashridge (UK). What a chance do I get to be hired by a UK company for working in the Western Europe?

  4. One should understand dynamics of emerging markets- and should leverage their expertise of western world. I am an Emerging market analyst and have experienced market closely.I would strongly advise aspiring and even matured candidate to have a fresh look at the emerging market- rather I would call is New Growth Market !

    Emerging Market Specialist Reply
     
  5. For the newly-grads and yuppies, it would be smart move on their part if they opted to gain work insights and experiences in emerging markets. They may probably find the kind of excitement and challenges they are looking for in a career.

    Please visit http://www.kalambacal.blogspot.com to gain insights of the Philippines – another emerging market in Asia.

  6. Dubai is great, sunny, elegant and sophisticated. High salaries, no taxes, big houses and fancy cars. Shoping malls full of beautiful women, excellent food and the nightlife is great. Of course to enjoy all that you need to be making a decent money and this not different from any where in the world. And people are discriminated every where in the world: latinos in NY, poles in London, turkish in Germany, argelians in France and asians in Dubai.. this is the story of the world since the Romans.
    Dubai is still a great place to make money and have a fantastic lifestyle, find your tribe and enjoy and if you are not happy just leave it.

  7. The emerging markets presents a great challenge and will be attractive to many but not all investors and professionals. It takes a different mind set to work in these markets but the rewards are there.

    The dynamics are there to be seen and we believe people with market experience in the western world will add a great deal of value. Anyone thinking of getting involved in this exciting and developing market should take a closer look at the activity and huge upside that exists in Kazakhstan. Once you start finding out some of the facts you will be hooked into wanting to know more.

    Visor Capital – London Reply
     
  8. Dubai sucks. It knows it can’t be a part of the West, where equality, freedom and respect prevail. They are just trying to get a bunch of Westerners who are fed up with paying taxes to come over.

  9. is it the last-ditch option of bankers whose careers are flagging elsewhere?

    YES.

    Maybe except BRIC.

  10. Russia’s banking system is less stable than everyone here might like think. Banks in the country are massively overvalued and interbank rates are rising. Look at the fundamentals before committing your career.

    Woman of the week Reply
     

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