Credit Suisse is poaching a top investment banker in the Middle East from Goldman Sachs. At the American firm, the dealmaker maintained stellar connections to Saudi state-backed firms.
The bank is hiring Hazem Shawki as its head of investment banking and capital markets in the Middle East, Turkey, and Africa, according to an internal memorandum seen by finews.com. A spokesman for the bank confirmed Shawki's hire, which was first reported by trade publications «IFR» and «Financial News».
Shawki, a Goldman veteran who left for a three-year stint with EFG-Hermes' private equity arm before returning to the U.S. investment bank in 2011, is tasked with kickstarting Credit Suisse's growth in the region. He will also help the Swiss bank to tap more wealth business from investment banking clients, it said.
Prolific Dealmaker
Shawki is one of the region's highest-profile dealmakers: he led Goldman's team advising Saudi Arabia's sovereign wealth fund on the $69 billion stake sale of Sabic to Saudi Aramco in March, for example.
Saudi Arabia is of particular focus for Credit Suisse: the Swiss bank won a banking license in the kingdom in April. It is keen to tap wealth fortunes – it bulked up in December – as well as investment banking deals.
Swiss-Saudi Tightrope
CEO Tidjane Thiam has walked a tightrope since the murder last year of journalist and Saudi regime critic Jamal Khashoggi. A United Nations special rapporteur said it found sufficient evidence to believe Saudi Crown Prince Mohammed bin Salman was linked to Khashoggi's death.
Credit Suisse's major shareholder, the Olayan Group, is based in Riyadh and the kingdom is a key market for both Switzerland's big banks. Switzerland's finance minister is also due to visit Saudi Arabia, together with a delegation of Swiss bankers. The visit was put off amid widespread political condemnation following Khashoggi's murder.
Goldman 1MDB Link?
Shawki's name surfaced in the 1MDB scandal: the Goldman dealmaker was behind a deal which netted Jho Low roughly $300 million, according to «Billion Dollar Whale,» a book by «Wall Street Journal» reporters Brad Hope and Tom Wright chronicling the $4 billion Malaysian graft scandal. Shawki has not been accused of wrong-doing.
Credit Suisse didn't mention the scandal, which has ensnared Goldman, in the memo detailing the appointment of Shawki. He will report to Vikas Seth, who runs Credit Suisse's emerging market investment bank, and Mathew Cestar and Jens Welter, who jointly oversee the unit in Europe, the Middle East, and Africa. Shawki will report regionally to Bruno Daher, Credit Suisse's top private banker in the Middle East.
