Dubai: In a bid to expand Dubai's position as West Asia's financial hub, two Dubai-based banks are merging to create one of the largest banks ion the region with assets of Dh 165 billion.

The banks are Emirates Bank International (EBI) and National Bank of Dubai (NBD).

Ahmad Humaid al Tayer, chairman of EBI, said the objective of the merger was to create a strong entity that would play a major role in the banking industry.

He disclosed that the merger had been under discussion for some time and the move had come very late for the Arab region and the UAE as he the seven-state emirate had not seen major mergers like this.

EBI has a strong branding and a large retail presence while NBD has an edge in the corporate banking. The move is also a clear sign of Dubai's intention to extend its reach as the region's financial hub.

The new bank will be the one of the largest financial institutions in the Middle East and North Africa.