Leading global investment banks, including Credit Suisse, are cutting research staff in the Middle East to save costs amid tough global conditions and a dearth of work in the region.
Japan's largest investment bank Nomura has shut down its research department, a person with knowledge of the matter said.
Deutsche Bank and Credit Suisse have cut their top equity research jobs for the Middle East and North Africa (MENA) region, four sources said.
"Regionally, (Nomura's) research department has been closed, given the wider situation of little activity on stock exchanges," said the person familiar with the matter, adding the move affected about five analysts in Dubai and London.
Credit Suisse laid off its London-based MENA equity research head Mohamad Hawa. At Deutsche, MENA equity research head Nabil Ahmed has left the bank.
The sources did not want to be identified due to the sensitivity of the matter.
"Funding for most of the growth areas like the Middle East ... came from revenue derived in more developed markets," said one source familiar with the matter.
"That revenue chunk has been significantly hit and there is no doubt that it will continue to be hit in the short term.
"Even though these banks think the growth is here, they will be forced to cut in the absence of any significant business from these markets."
Nomura and Credit Suisse declined to comment. Deutsche officials were not immediately available.