Staff in Gulf states faces uncertainty

Dubai: About 60 Gulf-based employees of Lehman Brothers faced an uncertain future on Monday as the leading US investment bank sought bankruptcy protection.

Lehman is engaged in investment banking and capital market operations in the region.

An official told Gulf News the Dubai staff had no clear communication about their jobs from the head office.

The 158-year-old bank received licences to operate in the Dubai International Financial Centre in August 2006 and the Qatar Financial Centre in April 2007.

It was one of the leading Western financial services giants that flocked to the Gulf amid a regional liquidity boom.

The major transactions in which Lehman was involved in the region included the merger of Emirates Bank and National Bank of Dubai, the Dh7.5-billion Jebel Ali Free Zone Authority inaugural sukuk, and $2.7 billion debt financing for Qatari gas projects.

With thousands of people at risk of job losses at Lehman, financial services firms in Dubai could be inundated with CVs from US investment bankers. "Some headhunting companies in the city have already received dozens of applications from Lehman employees in Asia, Europe and the US," said Benoit Demeulemeester, managing partner of Strategic Partners, a human resource consulting firm that specialises in the financial industry.

However, a senior banker said the job seekers may not find it easy to get lucrative positions in the Gulf as the regional market is already full of product experts.

"Lehman staff may be good product specialists, but what companies in the region are looking for is relationship expertise and local market knowledge," the banker said.