Emirates Bank International (EBI), which recently acquired a banking licence in Saudi Arabia, is setting up a representative office in Tehran. The office will be operational within two months.

Louis Scotto, general manager (retail) of Emirates Bank said, "In future, we would like to take the meBank concept to Iran once the circumstances turn favourable there."

Last year National Bank of Dubai (NBD) set up its representative office in Iran.

The fact that trade between the UAE and Iran accounts for around $3 billion - one of the highest with the UAE - itself is a reason for banks from here to eye Iran's financial sector.

NBD is keen to upgrade its Tehran representative office into a full-fledged branch once approvals from authorities are in place. EBI also has a representative office in India.

Moreover, the bank has got all clearances from the Saudi Arabian Monetary Agency (Sama) to set up its first branch there.

National Bank of Kuwait is the only other bank from the region to have a branch in Saudi Arabia. EBI has plans to promote its retail banking in Saudi Arabia through meBank.

EBI has been carrying out a total overhaul of its international operations during the last more than one year. It sold out its operations in Pakistan to a local bank - Union Bank Ltd - last year.

In Lebanon, EBI holds 10 per cent in Bank of Beirut.

EBI has a working relationship with an Indian bank, whereby it functions as the representative of ICICI Bank in the UAE.

As part of the new strategy, the bank is focusing more on the GCC and Levant. Its Hong Kong operations are closed down, and it runs an office in London.

EBI has been very keen about spreading the meBank concept by offering franchises throughout the region. According to Scotto, several enquiries are flowing in on this count, and advanced talks are on with groups from Qatar and Oman, other than a UAE group, on buying the meBank franchises.