Wall Street Firms Expand Gulf Teams to Ride M&A Wave
N.R. Finch
Deals involving Gulf entities surged nearly 200% year-on-year in H1 2026 to roughly $300 billion, triggering a hiring race across Wall Street as firms scramble for a share of the AI-and-infrastructure-driven M&A window.
War disrupted Middle East deals — why did they snap back so fast?
A regional war broke out in February; by March, Middle East deal activity had dropped roughly 15% year-on-year, and several banks turned bearish on the region.
Local investors largely sidestepped the conflict and kept pushing deals forward — especially large-scale bets on AI leaders such as OpenAI and Anthropic — driving a sharp rebound.
This means → Gulf capital no longer tracks geopolitics one-to-one; the pull of the AI race outweighed the uncertainty of war.
Where is the money coming from — and going?
Dealogic data show Middle East investment-banking revenue rose roughly 5% in H1 to $619 million.
M&A advisory fees jumped 55% year-on-year, offsetting a decline in equity capital markets — the business of IPOs and share offerings.
Governments across the region are also accelerating infrastructure and defence spending, opening a second revenue stream for banks.
In plain terms = M&A and government projects are firing on two cylinders; even with a cold IPO market, total fees are still climbing.
Which firms are adding headcount in the region?
Barclays recently moved energy banker George Tanner from London to Dubai; JPMorgan, Standard Chartered, Deutsche Bank and Rothschild are all adding staff.
Citi and Lazard are openly recruiting for Dubai roles; a Chinese bank is also expanding its Dubai team to pursue dual listings between the Hong Kong and UAE exchanges.
Law firms are following suit — New York-based Skadden has added further headcount after opening an Abu Dhabi office last year.
Are bankers willing to go? How are safety concerns being addressed?
Some bankers who evacuated after Iranian missile strikes have returned, but US-Iran talks have been repeatedly disrupted by renewed fire, keeping uncertainty elevated.
Gregory Agius, CEO of recruiter Agius & Partners, said: "It is now a personal-safety decision, and that changes everything."
This means → Employers must be far more explicit on pay, relocation support and long-term commitment to convince top talent to accept the security risk.
Low taxes, growth prospects, lifestyle and capital concentration remain strong draws, but candidates are choosing more carefully than before.
Which deals are moving forward — and which are stalling?
Several IPOs have been postponed or cancelled over fears that geopolitical volatility would hurt deal performance; M&A in construction, retail and hospitality has also taken a hit.
Deals in strategic sectors — food security, power, infrastructure services, logistics and defence — continue to advance, some with even greater urgency.
This reflects a bifurcation in the Middle East M&A market: discretionary sectors are on hold while strategic sectors are accelerating precisely because of the war.
Will staffing up in the Gulf translate into lasting advantage?
Whether the current surge in deal flow becomes long-term regional competitive advantage depends on whether firms can attract and retain senior talent.
Put simply = sending people out is the easy part; keeping them there is the hard part — whichever firm solves the safety-and-incentive equation turns a short-term window into a permanent foothold.
Content is for reference only, not financial advice.