JPMorgan has expanded in Dubai as part of a broader strategy to increase business with midcap companies in the Middle East, reported Reuters, citing an executive.
The move challenges competitors such as Citigroup and builds on JPMorgan’s recent efforts to expand its coverage of midcap firms in Austria and Poland.
London-based co-head of corporate banking for Europe, the Middle East and Africa Stefan Povaly said, “There’s a global focus on doing more in the midcap space.”
He added that midcaps provide JPMorgan with another revenue stream beyond its conventional focus on large blue-chip firms. “The Middle East is of course a priority … This is the first step for an expansion into the midcap space,” Povaly said.
Global financial institutions are increasingly establishing operations in the Middle East to access oil wealth and capitalise on the region’s expanding markets.
Barclays has recently announced its entry into Saudi Arabia, while Goldman Sachs has opened an office in Kuwait.
Commenting on the competitive landscape, Citi’s head of commercial banking in Europe, the Middle East and Africa, Alex Stiris, said, “We have seen more competition come into the UAE,” without referencing any individual firm.
“Obviously the more competition, the more we have to be on our tiptoes. So it worries me to some extent,” he said.
“We can’t rest on our laurels.” Stiris added, “We are investing selectively. Investing is not just in terms of just adding more headcount. It’s also in terms of just looking at the people we have, and in some cases, just upgrading people.”
He continued, “There’s also investing in terms of capital.”
JPMorgan is in the preliminary stages of assessing an expansion of its midcap company coverage in Turkey.
Povaly stated, “Over time, we could look to hire bankers dedicated to midcap clients in the country.”
As part of its expansion plan, JPMorgan has relocated Tushar Arora, a banker with more than ten years at the firm, from London to Dubai.
Arora will be the first member of a new team focused on serving smaller, venture capital-backed companies in the region.
This initiative follows JPMorgan’s recent efforts in Poland, where Marcin Pietrucha, hired from Santander, has established a team operating from Warsaw and other locations.
At the same time, JPMorgan is working to expand its midcap business in Austria, with banker Philippe Bull, based in Frankfurt, leading these efforts.
“JPMorgan expands in Dubai to target medium-sized firms: report” was originally created and published by Private Banker International, a GlobalData owned brand.
