JPMorgan has widened its activity in Dubai as it targets medium-sized companies across the Middle East and surrounding regions, according to comments given to Reuters.
The U.S. lender has been broadening its work with firms outside the large corporate tier, seeking what it describes as an additional revenue stream beyond its traditional client base.
“There’s a global focus on doing more in the midcap space.” Stefan Povaly stated.
The bank’s latest step involves shifting senior banker Tushar Arora from London to Dubai. Arora, who has spent more than a decade at the firm, is the first member of a team aimed at smaller, venture-backed companies. Povaly said, “The Middle East is of course a priority … This is the first step for an expansion into the midcap space.”
Financial institutions have been increasing their presence in the United Arab Emirates as they look to engage with oil-linked wealth and expanding commercial activity. The environment has created a competitive setting that encourages firms to sharpen their services while taking advantage of a relatively predictable policy landscape.
Citigroup, which has operated in the UAE since 1964, is among the established players watching JPMorgan’s moves.
Alex Stiris of Citi’s commercial banking arm described the country as “a location with one of the greatest opportunities for increasing market share” and said the bank has a “natural advantage.” He added, “We have seen more competition come into the UAE… Obviously the more competition, the more we have to be on our tiptoes. So it worries me to some extent… We can’t rest on our laurels.”
The bank recently hired Marcin Pietrucha from Santander to build its presence in Poland, while work with Austrian clients is being overseen by Philippe Bull in Frankfurt. The bank is also assessing activity in Turkey. As Povaly noted, “Over time, we could look to hire bankers dedicated to midcap clients in the country.”
The latest expansion continues a wider European build-out that includes the opening of a Berlin office with capacity for 400 staff ahead of a coming digital retail bank. It follows the bank receiving the largest fine to date from German regulators for shortcomings in anti–anti-money-laundering controls.