Oct. 10 (Bloomberg) -- QInvest LLC, the Qatari investment bank forming a joint venture with Egypt’s EFG-Hermes Holding SAE, is cutting jobs at its brokerage and asset management divisions, two people familiar with the matter said.
As many as 13 people are leaving, one of the people said, declining to be identified because the reductions aren’t public.
The cuts come as QInvest prepares to form a venture with Cairo-based EFG-Hermes in what the companies say will be the Middle East’s largest investment bank. QInvest will take 60 percent of the new entity and EFG-Hermes the remainder. Ashraf El Sharkawy, head of Egypt’s financial services regulator, said today he expects to approve the deal after earlier opposing it.
QInvest, a unit of Qatar Islamic Bank, has the option to buy EFG-Hermes’s 40 percent in one to three years after the deal completes. The investment bank would be the largest in “the Arab World, Africa, Turkey, South and South East Asia,” EFG-Hermes said in April. The new entity will include EFG-Hermes’ main business lines of investment banking and brokerage.
A spokesman for QInvest in Doha, who declined to be identified citing corporate policy, said the bank continues to meet client needs, without confirming the job cuts.
The Qatari bank joins other lenders reducing positions in the Middle East. Credit Suisse Group AG cut two Dubai investment banking jobs and is moving others to Qatar, two people with knowledge of the matter said last month, while Deutsche Bank AG eliminated seven jobs at its investment bank unit in Dubai, two people with knowledge of the matter said.
QInvest, which is advising Barwa Bank on a share listing and recently helped manage Qatar Islamic Bank’s $750 million sukuk sale, hired Tamim Al Kawari as its deputy CEO earlier this year. He joined from Goldman Sachs Group Inc., where he was head of the New York-based bank’s Qatar office.
EFG-Hermes rose 3.6 percent in Cairo to 11.85 Egyptian pounds, while Qatar Islamic Bank fell 0.4 percent to 77.30 rials in Doha. EFG-Hermes surged as much as 8.2 percent yesterday after chairwoman Mona Zulficar said in an interview that she expected the Egyptian regulator to approve the deal next week.