Boston, MA 11/04/2013 (wallstreetpr) – Morgan Stanley (NYSE:MS) is seeking another foray into the Middle East, saying that the worst in the region which drove several banks away might be over now. But the company is coming back to Middle East and North Africa (MENA) region with a different strategy which is targeting clients looking for solutions to complex transactions which demand global expertise.
Following the financial crisis in the Gulf Arab region, global lenders retrenched staffs on large-scale and MS in particular switched its commodities operations to London and its equities trading to Riyadh at the height of the crisis in the Middle East. The Middle East is picking up in acquisitions and merger markets as well as equity and debt after several years of weakening activities on the markets. This is why the global banking company is hoping that offering complex transactions solutions and not just underwriting would bolster its standing in the region this time around.
The bank’s CEO and chairman of MENA is Sammy Kayello. He says that the international financial banking company is aiming to constantly improve its return on equity. Apparently, when it comes to finding a business model for the Gulf Arab region, several financial institutions are left herding cats. Many had flocked to the region with the allure of lucrative oil business and fast growing economy, but that well dried up and banks had to cut workforce as they reassessed strategies for the region.
The line of business that is showing signs of quick recovery in the Gulf Arab region is the deal activity which is getting buoyed by strong economic growth and improving financial markets. During the past nine months for F2013, banks operating in Middle East witnessed their investment banking fees hit $535.9 million, indicating a 22% gap up over the same duration in F2012. The latest numbers reveal the best performance in the first nine months since four years ago in the region.
