Dubai might be grabbing the headlines for luring Western bankers to the Middle East, but Saudi Arabia is desperate to sway talent over its borders.

Saudi has slowly been opening its doors to foreign investments and international investment banks, and the influx of new players has placed pressure on an already strained talent pool.

Ian Thomas, head of international recruitment at Banque Saudi Fransi, a joint venture with Crédit Agricole (formerly known as Calyon), says: “There’s an enormous amount of job-hopping going on here and the employment culture is different to Europe. At junior and middle levels, people will move for money very cynically or demand another 100% of salary in order to stay.”

Lehman Brothers, Credit Suisse and Japanese bank Nomura are the latest to set up investment banking operations in Saudi. ABN AMRO, BNP Paribas, Deutsche Bank, Goldman Sachs, HSBC, JPMorgan and Morgan Stanley are also there – mainly through joint ventures with local institutions.

Stringent localisation targets mean investment banks are keen to attract Saudi nationals with UK or US experience back to the kingdom, says Thomas. But the majority of key positions in investment banks are taken up by expats.

Bill Allum, managing director of search firm Napier Scott, says pay is generous, particularly at international houses.

“Global banks adopt a policy of looking for the best and paying a premium to get them into the kingdom,” he says. “But in the current market, regional banks think they can offer 40% less than the typical London salary because it’s tax free. This doesn’t fly with the really good people.”

Peter Jones, director of Middle Eastern focused recruiters MRK International, says salaries for investment bankers “vary wildly”. However, mid-level posts can pay $200k base, with bonus potential currently greater than in Western markets and any other Gulf nation.

Thomas reckons there’s big money to be made, but expect a bit of culture shock: “Saudi is the dominant economy and controls the Gulf in its own way – under the table and behind the scenes. It’s a sleeping giant and is beginning to awaken, but it will never change its culture to attract talent the way Dubai has.”