The International Finance Corporation (IFC), a member of the World Bank Group, is poised to open an office in Dubai to help the Gulf's private sector expand its capacities and finance development projects, said a senior official.

The organisation, which has committed up to $200 million in Iraq's small and medium enterprise sector, oversees its regional operation from its Cairo office.

Sami Haddad, IFC's director for the Middle East and North Africa, said: "We are considering opening an office in Dubai which, if it materialises, will help us increase our involvement in the region.

"We are working on a proposal for the office set-up in Dubai. We currently manage our regional operations from our office in Cairo and also maintain offices in Morocco, Algeria and Pakistan."

"About half of the Middle East's GDP comes from the Gulf. The Gulf has stronger economies and a low borrowing record. This is why our involvement in the Gulf has been low," he said.

"Most of the projects the IFC has been involved with so far have been in the West Bank and Gaza, Iraq, Algeria and Morocco, as well as Pakistan.

"However, we want to increase our involvement in the region and help its private sector," he said.

The IFC's Middle East and North African portfolio last year was $2.16 billion, which was lower than the previous year's $2.23 billion. The organisation has signed $279 million worth of finance for 17 projects last year, up from the previous year's $221 million.

It is currently working on providing $30 million in technical assistance and $170 million in financing small and medium enterprises in Iraq, part of the $200 million package it had pledged last year.