The two banks are in the final stages of putting together the joint venture, which could have a 50-50 structure, Varouj Nerguizian, Bank of Sharjah’s general manager, told the news service in an interview.

"To tap the potential of the region cannot have... it's easier for us because we are a local bank and we know the people better," Nerguizian said.

News of the hook-up between BNP Paribas and Bank of Sharjah closely follows an announcement at the start of this month that Abu Dhabi Commercial Bank and the UK’s Schroder & Co Bank are setting up a private banking partnership in Switzerland to offer services to wealthy clients from the UAE.

According to figures cited by Reuters, the number of high net worth individuals in the Gulf region is expected to grow by some 6 per cent between 2008 and 2013.

The report also said that Bank of Sharjah is considering establishing a presence in Europe, either by acquiring a small bank or obtaining a licence.

"I think we are going to pursue that shortly... there is a lot of a business between Europe and the UAE that you can capture through that entity," Mr Nerguizian was quoted as having said.