Hiring Continues In The Middle East Wealth Management Bonanza

Despite chilly global credit markets, the Middle Eastern wealth management arena is a recruitment hotspot. Firms are busily hiring senior executives to spearhead new wealth management teams. For example, Merrill Lynch recently appointed Mazin Al-Shakarchi as a financial advisor covering Qatar from the Bahrain office. HSBC Bank Middle East has appointed Walid Boustany to the role of executive director, strategic investments, Middle East & North Africa. He will be responsible for HSBC’s strategic planning across the region. Goldman Sachs, the US investment bank, has appointed Fadi Abuali as co-head of its Middle East private wealth management business, alongside current head Farid Pasha.

And there is more: the Central Bank of Bahrain has approved Douglas Hansen-Luke as Robeco’s new chief executive for the Middle East. Mr Hansen-Luke formerly worked in senior positions for ABN Amro Asset Management in Asia, Europe and Saudi Arabia. Bahrain-based Ithmaar Bank has appointed Shaikh Salman bin Ahmad Al Khalifa as managing director, group business development.

The rash of appointments seen in recent years will continue, barring an unlikely collapse in demand for wealth management, Professor Amin Rajan, chief executive of Create-Research, a UK consultancy on the investment management industry, told WealthBriefing.

Wealth managers are going into the Middle East in a big way, said Professor Rajan. This is a high-margin business to be in as banks get fees right along the value chain, he said. But although the region is lucrative, making money is not easy. Local investors typically punish poor investment performance quickly – often far faster than is the case with European or US clients, said Professor Rajan.

The real issue is to understand the client mindset. Client money [in the Middle East] isn’t sticky at all. When performance is bad they ask for a rebate, which is how it should be. If [wealth managers] can survive in the Middle East, they can survive anywhere, he added.

Barclays Wealth, for example, has every intention of doing more than just survive in the region. As an illustration of its ambitions, Barclays is moving into a new 14,000 square feet office in the Dubai International Financial Centre, which will be a hub for the firm’s operations in the region. Operating currently in Dubai and Abu Dhabi, Barclays Wealth is also planning to make its Doha Qatar office operational this year.

Barclays Wealth leadership believes that the Middle East is a core area of growth. A substantial investment in human resources and capabilities and a rigorous expansion plan will lead to a substantial increase in the scope of operations, Soha Nashaat, managing director, head of Middle East, North Africa & Turkey for Barclays Wealth, told WealthBriefing.
Like Professor Rajan, Ms Nashaat says wealth management firms entering the Middle East from outside the region must understand the local culture if they are to make a success of their business. For example, more than 70 per cent of businesses are family-owned, which requires managers to forge long-term connections.

Wealth managers must understand and cater to the regional trends such as the dominance of family offices, Ms Nashaat said. Investors tend to be intolerant of risk and hold a high proportion of assets in cash and in offshore locations, she added.

Middle Eastern clients put great stress on strong relationships with investment advisors and dislike high turnover in staff, a factor that wealth managers must consider in their staff recruitment and retention plans, Stuart Crocker, chief executive, Emirates Platform and Southern Gulf States, HSBC Private Bank told WealthBriefing.

People don’t like seeing relationship managers moving on every two or three years to other banks, he said. His own bank, part of the HSBC banking group, serves clients both from local Middle Eastern locations as well as from its teams of specialists in Geneva.

The general background for wealth managers is certainly favourable. The investable assets of HNW individuals will rise by 50 per cent between 2006 and 2010, according to Barclays Wealth data.

The number of HNW individuals rose by 11.9 per cent in 2006 from a year before, according to the latest Merrill Lynch/Capgemini World Wealth Report issued last June. Wealth management intermediaries have only started to manage a significant share of assets in the region. Research from Zurich International Life, for example, reveals that expats living in the Middle East prefer to rely on their own judgment or friends and family when purchasing financial products. The survey showed that fewer than one in ten expats would enlist a financial advisor, either in their country of domicile or residence, to help them make the financial decisions. Financial advisors have a vast untapped market to go for.

While researchers like PricewaterhouseCoopers have warned that wealth management firms face a skills bottleneck, hiring staff for Middle Eastern slots is being helped by a benign tax regime and attractive pay packages.

Private bankers in tax-free Dubai earn 25 per cent more than their peers in Geneva and almost 40 per cent more than colleagues in London, according to a recent survey by Dubai-based headhunter Dunn Consultancy FZ-LLC.

Excluding bonuses, private bankers in Dubai with at least 10 years experience receive an average salary of $276,500 with allowances, compared with pre-tax earnings of $221,900 in Geneva and $199,100 in London, it found.

The economics of wealth management in the Middle East certainly look compelling. For the time being at least, the toughest challenge for players in the region is keeping up with the pace.

Mlm Business Success Whats Your Exit Strategy

How you get out is way more important than how you get in. Its absolutely critical. Its called the exit strategy and its something youll never hear discussed in any MLM Business recruiting session. In fact, you may never hear about it at all once youre in the company, yet its one of the most important subjects. Without one, you could lose your entire MLM Business income you spent years building once youre ready to step away and fully enjoy the fruits of your labor. Lets look at why this is so important, and 2 critical items you must have in any business in order to have a successful exit strategy.

So why an exit strategy?

Think of it this way. If you work a traditional job today, one thing you probably looked for is the retirement plan, 401K, or other pension. Its the income stream once you retire from your primary business. An MLM business is no different. If you dont plan for the future, youll find yourself in an endless cycle of phone calls, recruiting meetings and team support to keep your income going. Without that continual effort, your income will evaporate because youre no longer driving it.

Consider this scenario.

You found the right MLM business opportunity, and youve spent months and months, and maybe even several years building up your team and your downline and have created a successful income of multiple five figures per month. Youve accomplished your mission and paid off your debt, you own your house and youve traveled the globe. You decide to retire from your MLM opportunity, and then you find something disturbing happening. Without you leading by example, actively recruiting mlm leads, running team calls, answering questions, etc, your team, and your check start to dwindle. It makes sense because it was your drive and energy that built the team in the first place. Once that stops, natural attrition takes over and the team dwindles. Next thing you know, multiple five figures becomes just five figures, and then four and then three. And guess what? It happens a lot quicker than it took to build it. So now what are you going to do? Build it all over again? This isnt just limited to MLM businesses either.

Do you know that statics show that by the time they have retired, 78% of former NFL players have gone bankrupt or are under financial stress? How can this be with the huge multi-million dollar salaries? Simple. They didnt have the financial education on how to leverage the income and turn it into a reoccurring revenue stream. Its the same with many top MLM entrepreneurs. There are many stories of those who built huge incomes, and then went back to broke after they left their company, or the company went out of business. In both cases, the individuals earning the income didnt know how to financially leverage it. And by leverage, I dont mean buying a Ferrari or expensive jewelry like you see in all the pictures, unless of course thats your investment and you plan to sell it as soon as you leave your MLM business.

There are two key items to look for in your next company to solve this.

First, you want to look for a company that is building some kind of component that helps you have a long term residual stream other than the downline; usually this is an IPO (Initial Public Offering). Typically the way these work is you are given the opportunity to earn shares while youre recruiting, which in turn will translate into real value (i.e., money) when the company goes public. This is nothing to sneeze at as people like Warren Buffet (richest man in the world) have been known to invest in MLM businesses. There are many examples throughout the industry of top recruiters earning huge sums when their company goes public.

The other key criteria to look for in a MLM business is getting into one that has financial education built in, or better yet uses financial education as part of the product line. This way youre really maximizing your time learning how to build a profitable MLM business for your short-term income now, and a long-term residual income stream for your retirement in the future (hopefully near term future).

No matter what anyone tells you, building an MLM Business takes a lot of work and effort, but it doesnt have to be done forever. If you plan your exit strategy correctly, you ensure that once youve earned the income you deserve, it will work for you long after youve stepped away from your business to live the life you deserve.

Coping With Investment Fraud

investment fraud (also called brokerage fraud) usually occurs when an advisor, a brokerage firm, or a stockbroker give advice to a client against the rules and regulations as decided by the Securities and Exchange Commission. You should not fall victim to deceitful brokers so better study the flimflams used by investment fraudsters and how you can steer clear of them, in this article.

Unfortunately, most of the investment fraudsters take aim at older people. Majority of the senior citizens have the features that fraudsters are searching for. These factors may be their sizeable savings accounts and the inclination to trust more effortlessly. If you fit in to this age bracket, be extra cautious. Invest your money directly with reliable companies, and avoid deceptive brokers unless you are adept at stock market and its nitty-gritty.

You should never sign any document without the presence of a legal representative you trust, particularly if you are not very learned about legalese and technical documentation. In case if you are reluctant to hire a lawyer, therefore you should do your homework in advance.

Watchfully reading and understanding contracts, terms of agreements, and policies that come attached with any investment documentation could prove to be an intelligent move.

Majority of fraudulent companies use the fine print of their contracts and agreements to deceive you. The most common tricks used by investment fraudsters are so-called Prime Bank Instruments. They practice to use the names of the worlds finest and high-status banks in efforts to make you invest your money. They act as if to pool your money with the money of other investors. Initially they may take you away by offering you good returns with the intention that you invest more and tell your acquaintances about it. In point of fact, the returns they offer you are money from their new victims. After one or two buncos, they will run away with all of your money.

If you feel you have discovered a company worth investing in, be careful. Look further into the companys financial conditions and stock position, at the very least. Ensure that that you are dealing with a legitimate company; hence you will not be cheated and scammed of your hard-earned money.

Let’s consider investing in a nationally renowned startup U.S. airline company such as Baltia Air Lines.

Baltia Air Lines, Inc. is a publicly traded New York corporation trading under the symbol “BLTA” on the OTC bulletin board. Baltia Air Lines is currently seeking approval from the U.S. Department of Transportation (D.O.T.) for the right to fly the only nonstop roundtrip flights from NY to St. Petersburg, Russia. The Company has everything in place and ready to go. Baltia has filed with the D.O.T. and has completed its manuals for submission to the FAA once they receive the go ahead from the D.O.T. Baltia’s upper management is extremely confident that the business model will generate substantial revenues and shareholder appreciation. The Company has projected that its first aircraft servicing the St. Petersburg market from JFK will generate on an annual basis gross revenues of more than $90 million with a 17% bottom line. The projections are based upon a conservative 57% passenger load factor and average ticket pricing of roundtrip flights from JFK to Pulkova, St. Petersburg. Passenger load factors should be significantly higher than 57% and at 40% passenger load the Company will break even. Plans to increase service to additional markets such as Riga, Kiev, Minsk and Moscow will add to the already exciting sales numbers of Baltia.

The New York – St. Petersburg market is enormous and rapidly expanding, connecting two major world-renowned cities with populations of 10 million and 6 million, respectively. Baltia’s nonstop service from New York’s JFK airport to St. Petersburg will take approximately 8 hours, as compared to foreign airlines with European connecting flights that take 11 to 18 hours.

That’s a huge difference for legions of business travelers and tourists who fly to St. Petersburg each year (the city has become one of the world’s seven hottest travel destinations as well as a major shipping hub).

Simply put, Baltia Air Lines will offer the fastest, most reliable, convenient and comfortable passenger service – as well as the fastest and most reliable air cargo and mail services.

Baltia is a fully reporting OTCBB company with 270 million common shares issued/outstanding, and 18 million shares in the float (prior to this offering). The company has no debt and no liabilities.

So, as you can see, investing into Baltia Air Lines has a lot of merit and a lot of promise.

Tranquil Path To Seychelles Offshore Company

Whether it happensit is very to save income taxes, achieve elevated business versatility, shield property and assets, minimize reporting, or maybe manage privacy, having an overseas organization (a firm your image performs business outdoors the country related with incorporation) could be a particular finest business tool. Offshore business development is relevant amidst uk entrepreneurs, independent contractors, specialists plus traders. The hired contacting firm collects the required due diligence from the customer. The consulting company offers the client using a full show program, that includes procedures to include the prospective offshore business. The consulting firm proceeds to register the offshore business when using the suitable company construction.

Find out which of the Singapore Incorporation or investment options available, or Dubai Offshore Company will be appropriate for you.

A Tranquil Path To Seychelles Offshore Company

This certificate is the piece of content which we hold since confirmation which the business exists. A certificate of incumbency indicates that the business was in advantageous waiting. The business is need to keep statutory contracts of the Offshore Company formation. The papers are to be saved within the jurisdiction related with the destination the firm was subscribed. In this case, the papers needs to be prevented inside the offshore organization ‘s registered business office. The manager or company directors of the Offshore Business are to continue all important offshore firm data files also as the audited accounts. Most of the offshore companies do not function a considerable company inside the nation of registry.

This keeps the prospect related with brand new company, surprisingly attractive. Overseas Company is a non-resident firm that is integrated in foreign nations inside purchase to avail its flexible income tax structures and additionally fruitful company possibilities. The fundamental reason at the rear of establishing a company inside a foreign locale is the chance of income tax reduction which enables you to get into the popular taxation construction of the nation. The benefits provided to offshore organization inspire a lot of people to launch a firm inside foreign lands. Overseas company formation not just spares revenue about income tax unfortunately, the task related with environment and building a business is truly simple plus simple.

Less formalities and additionally records is mandated when environment a company and additionally one could smoothly function that company with a lot Comfort. Various other major positive aspect of the overseas business formation is simplified reporting strategy. Reporting system related with overseas organization is simpler than the reporting program of a local native company It moreover helps the businessman to continue that essential information confidential as your man refuses to have to present this strategies to virtually any influence. Furthermore indeed there is a greater range for asset cover and personal security is additionally treated inside an impressive manner. The offshore organization formation is useful for each the firm also as the publish nation.

Head over to my web site on investment options available for other tools and additional info on Offshore Company In Dubai.

Your Credit Utilization Ratio

Credit utilization ratio – a significant factor in your credit score
Most consumers who keep a close eye on their credit score know exactly what a credit utilization ratio is; it’s the percentage of your total credit limits that you actually use.

A balance of $1000, with a $5000 total credit limit on all revolving accounts, equals a 20% credit utilization ratio.

A low credit utilization ratio is good for your credit score; it’s recommended to keep it under about 30% of your total credit limits, and less than that is even better.

Your credit score will suffer if you use too much of your available credit; thirty percent of your credit score is based on your credit utilization ratio. Maxed-out credit cards will wreak havoc on your credit score.

It’s important to be aware of how your credit utilization ratio affects your credit score at any given time, especially if you plan on applying for credit in the near future, such as a home mortgage or car loan, or even a credit card.

A better credit score saves you money in the form of better interest rates and more generous benefits from your lender or creditor.

Responsible credit card users’ credit score may not truly reflect their credit habits.
The funny thing about credit utilization is that it simply shows how much you use your credit cards. But it doesn’t really say anything about how well you can afford to pay your debts.

Credit cards are no longer used strictly for emergencies like they used to be, and using a credit card doesn’t mean that you don’t have the money in the bank.

Many use credit cards daily for the convenience of it; swiping a credit card is so much quicker than pulling out cash and waiting for change. In our fast-paced society, those few extra seconds can make a difference in our day.

And the rewards are another reason many responsible consumers choose to use their credit card for monthly bills and daily purchases, when they could just as easily use a debit card for the same convenience.

Smart credit card users know how to get free use of somebody else’s money every month, by using their credit card and then paying the full balance before finance charges are assessed.

But using a credit card for most purchases brings up your credit utilization ratio, especially if your credit limits aren’t much higher than the amount of credit you actually use each month.

For example, you may consistently put $2000 on your $3000 limit card every month. You never put more on your card than you can pay off each month, and you may not see the need to apply for additional credit cards or a credit limit increase because you believe you will never need more credit at your disposal.

This would seem like the habits of a smart, responsible borrower. But that kind of usage would put your credit utilization ratio at 66%, something that make creditors nervous and damages your credit score.

And keep in mind your credit utilization ratio is not a fixed number; it can change dramatically over the course of one month, depending on when you pay your bill and when the creditor reports your payment and balance to the credit bureau.

Paying your full balance each month would put you at a zero percent ratio immediately after the creditor receives the payment; that should be good for your credit score.

But what if your creditor reports your balance just before you make the full payment? Your credit score will suffer for it, no matter how good of a grip you have on your finances.

A borrower with a low credit utilization ratio may still be in over their head in debt.
A credit limit increase is normally considered to be a good thing. It shows that you’ve been good at handling your debt with on-time payments, and that the creditor trusts you enough to let you loose with more available credit.

It also brings your credit utilization ratio down, as long as you don’t increase your debt load. A lower credit utilization ratio means a higher credit score, and a higher credit score means that you’re financially in good shape, right? Well, not always.

The higher credit limits probably won’t present a problem for those who are careful about how they use credit. Having more credit available doesn’t mean you have to use it, and financially responsible consumers will control their spending, no matter what their credit limits are. These consumers can enjoy the privelege of a higher credit score, and the better financing deals that go with it.

But let’s just say we have someone who has managed their debts well in the past, and they have several credit cards with a total credit limit of $10,000. They carry a balance of $2000, and their monthly payments rarely exceed the amount of the interest charges and new purchases each month.

So the $2000 balance is pretty consistant from month to month. With a 20% credit utilization ratio and a good credit score, creditors may eventually decide to increase their total limits to $15,000.

Some consumers in this situtation will spend a little more than usual when they get their credit limit increase. With higher credit limits at their disposal, they can let their balances grow to $3000, while still maintaining a low 20% credit utilization ratio.

A 20% ratio may be great for a credit score, but $3000 is a lot of credit card debt to carry around if you can’t afford to pay it off every month, or at least within a few months. A low credit utilization ratio can give consumers the illusion of a manageable level of debt. In reality, the debt may be more than the consumer can afford to get ahead of within a reasonable amount of time.

The worst-case scenario is when a troubled borrower routinely requests credit limit increases in order to keep a good credit score, while maintaining their otherwise out-of-reach lifestyle. Credit limits keep increasing while the debt keeps growing, until the day the borrower realizes they’ve let their spending get out of hand.

It may eventually become difficult for them to even make the minimum payments on thousands of dollars worth of credit card debt. From there, their credit scores and financial health can be damaged pretty badly.

Be smart in handling your debt.
So, even though your credit score is important for you to get additional financing, it’s important to ensure that the dollar-amount of your debt remains at a manageable level.

Someone with a relatively low credit score may own more than they owe and have plenty of money in the bank, while someone with a higher score is barely scraping by and living off of their credit cards. A credit score has much to do with the financing that’s available to you, but it really has nothing to do with your overall financial picture.

A good credit score is still important. It’s what makes homeownership and buying a nice car possible. It’s what get you better deals on credit cards and lines of credit.

A good credit score will make it easier to attain the things we need and want, but having a good credit score, in itself, won’t improve your financial situation; it only means that it’s easier to borrow money.

Understand where your credit fits into your overall financial picture, and make decisions to improve your financial health, not just your credit score. With careful planning and responsible spending, someday, you may not ever have to borrow money again.