Investment Banking in Abu Dhabi – Market Overview
Abu Dhabi has been doing well in the investment banking arena. As per the report of Thomson Reuters, during the year 2017, the Middle Eastern investment banks made $912.4 million in total fees. Even if this is 0.1% less than the year 2016, still, we can say that it’s quite promising.
The reason we call it promising is that even if there’s a sharp decline in the M&A transactions in the year 2017, still the investment banks in the Middle East managed to receive an astounding amount in fees (just less than 0.1% less than the previous year). In the year 2017, the M&A transactions reached $43.8 billion which was 14% less than the amount of M&A transactions done in the year 2016. However, the inbound M&A has drastically increased, around $9.8 billion, that was a 117% increase from the year 2016.
Services Offered by Investment Banks in Abu Dhabi
As you can see, most of the investment banks in Abu Dhabi offer similar services.
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Below, we’re highlighting the most significant services that the investment banks in Abu Dhabi offer.
- M&A Advisory: One of the most important services the investment banks in Abu Dhabi offer is M&A advisory. The focus of each bank is relationship-based and before they ever take a step ahead, they think about the strategic objective of the company. From due diligence to risk analysisRisk AnalysisRisk analysis refers to the process of identifying, measuring, and mitigating the uncertainties involved in a project, investment, or business. There are two types of risk analysis - quantitative and qualitative risk analysis.read more to closing deals, everything is done with sheer ethic and personal responsibility.Equity Capital Market (ECM) Advisory: One of the major parts of investment banks in Abu Dhabi is equity capital market (ECM). From IPO to private placements, the investment banks in Abu Dhabi provide varied advisory services to their clients in equity capital market.Debt Capital Market (DCM) Advisory: Debt capital market fees have not dropped since the year 2014. That’s why it is one of the biggest parts of investment banks in Abu Dhabi. Investment banks in Abu Dhabi help their clients with advising, arranging, and contributing in a huge spectrum of financial instrumentsFinancial InstrumentsFinancial instruments are certain contracts or documents that act as financial assets such as debentures and bonds, receivables, cash deposits, bank balances, swaps, cap, futures, shares, bills of exchange, forwards, FRA or forward rate agreement, etc. to one organization and as a liability to another organization and are solely taken into use for trading purposes.read more.Transactional Finance: From underwriting to capital raising, the investment banks of Abu Dhabi provide a broad array of transactional finance services to help clients deal with operational and day-to-day activities.
Top Investment Banks in Abu Dhabi
Here’s a comprehensive list of all the investment banks in UAE (not only in Abu Dhabi) as per GlobalBankingandFinance.com –
- Abu Dhabi Investment HouseADCB Macquarie Corporate FinanceAJM Capital PartnersAkbankAl Fajer Investment and DevelopmentAl Mal CapitalAl-Arabi Capital LimitedAllied Investment PartnersAlpen Capital LimitedApache Management ConsultanciesArabian Capital Investment & Finance Company LimitedArqaam Capital LimitedATA Invest LimitedAttijariwafa Bank LimitedBaer Capital Partners International LimitedBDO Corporate Finance LimitedCAPM InvestmentCarlyle Mena Investment Advisors LimitedChescor CapitalCitigroup Global Markets LimitedClarkson Investment Services LimitedCommerzbankCredit Suisse AGDaman InvestmentsDelta PartnersDeutsche BankDIB Capital LimitedEFG-Hermes UAE LimitedEmirates Investment BankEmirates NBD Capital LimitedFFA LimitedFH Capital LimitedFull Circle InvestmentsGenero CapitalGoldman Sachs InternationalGulf Merchant Bank LimitedGulfCap GroupHC Investment Banking LimitedHSBC Financial ServicesJPMorgan Chase Bank National AssociationJulius Baer LimitedKCP CapitalKillik and CoLeader CapitalLootah Farazad InvestmentsMAC Capital LimitedMarisk Management ConsultantsMerrill Lynch Bank S AMillennium Finance CorporationMobilefour Holdings FZCO-LLCMorgan Stanley and Company InternationalMorra Capital LimitedNBK Capital LimitedNomura International Dubai BranchNoor CapitalPalma Capital LimitedPermal Investment Management Services LimitedPromontory Financial GroupRasmala Investment Bank LimitedReliance Capital Asset ManagementRussell Investments LimitedSaffar Capital LimitedSEI InvestmentsSHUAA CapitalThe Bank of New York MellonThe Emirates Capital LimitedThe National InvestorTitus FlaviusUBS AGUnifund Capital Financial InvestmentUnion De Banques Arabes Et FrancaisesVTB Capital plcYUSR Islamic Investment Bank Limited
Recruitment Process of Investment Banks in Abu Dhabi
As you can understand the investment banking in the US or in the UK is a completely different ballgame than what investment banks in Abu Dhabi. But the basics are always the same.
If you’re someone that has completed her schooling from a top institution of Europe or the US, your chances in the investment banking industry in Abu Dhabi would be much brighter than someone that has done her schooling from a lower-tier school. You should also work on your networking skills so that you can get in touch with the top-notch executives of the investment banks of Abu Dhabi. And along with that if you can do a couple of internships from bulge bracket investment banksBulge Bracket Investment BanksTop 10 bulge bracket investment banks are - Blackstone, Goldman Sach & co, Morgan Stanley, J.P Morgan Chase & co, Bank of America Merrill Lynch, Credit Suisse, Citi, Deutsche Bank, HSBC, UBS.read more, your path would be much swifter and brighter.
Investment Banking Culture in Abu Dhabi
As they say, banking is banking. And in Abu Dhabi, you would experience the same. You would need to work 100+ hours a week. But there’s a subtle difference in the philosophy of work. In Abu Dhabi, the executives and partners stress more upon getting things done than how long you would stay in the office.
Every year, August is the slow month for investment bankers. Most of the senior partners take holiday during August.
Investment Banking Salaries in Abu Dhabi
The most promising roles in investment banks in Abu Dhabi are M&A advisory associates. And here’s the snapshot of the salary of the investment bankers at various levels in UAE (souce: roberthalf.ae)
- Managing Director – $ 271,400 – $ 400,100Director $ 238,700 – $ 322,100Compliance Director $ 130,800 – $ 228,900Compliance VP $ 98,100 – $ 163,500Vice President $ 160,200 – $ 235,900Associate $ 114,600 – $ 192,100Senior Analyst $ 98,100 – $ 120,000Analyst $ 75,200 – $ 106,800
As you can see that the salary of the investment bankers is quite good in Abu Dhabi. Moreover, the investment bankers don’t need to pay any income taxes. That means they’re able to save more money and have a bright future ahead of them.
Investment Banks in Abu Dhabi – Exit Opportunities
In Abu Dhabi, the scenario of investment banking is different. When someone joins an investment bank, they want to stay there for a long period of time. Rarely they think of quitting and changing their domain of work. As it’s said, Abu Dhabi is not like the US and that’s why people don’t exit after a couple of years of experience in the investment banking field.
But if someone looks for exit opportunities, two prominent options are there. The first option is going for wealth funds. And the next option is joining a private equity firmPrivate Equity FirmPrivate equity firms are investment managers who invest in many corporations’ private equities using various strategies such as leveraged buyouts, growth capital, and venture capital. The top private equity firms include Apollo Global Management LLC, Blackstone Group LP, Carlyle Group, and KKR & Company LP.read more.
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This has been a guide to Investment Banking in Abu Dhabi, their services offered, recruitment process, their culture, top Investment banks in Abu Dhabi, salaries and exit opportunities. You may also have a look at the following article for learning more about Investment Banking –
- Investment Banking in AtlantaInvestment Banking in Dubai OverviewPrivate Equity in DubaiTop Banks in the United Arab EmiratesInvestment Banking in Singapore