RBS ends Rasmala partnership
Dubai, March 5, 2012
Royal Bank of Scotland (RBS) has ended a tie-up with Dubai's Rasmala Investment Bank to provide equity research on Middle Eastern companies, the UK lender said.
Several global investment banks, including Credit Suisse and Japan's Nomura, are cutting research staff in the Middle East to save costs amid tough global conditions and a dearth of work in the region.
'There is no further requirement for the joint arrangement with Rasmala,' RBS chief executive for Middle East and Africa Simon Penney said, adding the decision follows a move by the lender to exit its cash equities business globally. 'RBS is committed to its other businesses in the UAE,' Penney said.
RBS, 83 per cent owned by the UK government, is in talks to sell its mergers and acquisitions business in the Middle East and cut some jobs as part of a global restructuring, the bank said.
That comes as part of a global shake up in which RBS plans to cut another 4,450 jobs.
The bank was an adviser in the sale of Aujan Industries' 50pc stake to Coca-Cola Company last year.
Many bankers say more staff from financial institutions in the region are likely to be shifted to other locations or laid off.-Reuters