Liechtensteinische Landesbank (LLB) has formalised an arrangement with Rothschild & Co for the referral of its private banking clients in Dubai and Abu Dhabi, UAE.

LLB has opted to close its business locations in these two sites, after two decades in the Middle East.

The referral encompasses assets potentially worth CHF 1bn ($1.25bn).

Rothschild will assume control of LLB’s Dubai office, with approximately 20 LLB employees transitioning to Rothschild.

This will increase the size of Rothschild & Co’s Middle East wealth management team, headed by Sascha Benz, to approximately 25 people.

Rothschild said that the deal will facilitate market reach and the delivery of a more range of services in both public and private markets, including corporate advisory.

Rothschild & Co executive chairman Alexandre de Rothschild said: “In recent years, we have experienced continuous strong growth in our global Wealth Management and Middle East businesses.

“The onboarding of LLB’s business in the UAE is an excellent fit and further supports our strategy across one of our key global business pillars and fastest growing regions. This represents our high conviction in the UAE’s potential, given the increasing concentration of both regional and global wealth here.”

LLB interim Group CEO Christoph Reich stated: “We successfully expanded our presence in the Middle East in recent years with commitment and passion. For strategic reasons, we will focus on supporting our international clients in future at our business locations in Liechtenstein, Switzerland, Austria and Germany.

“We have therefore decided to offer our clients and employees in the Middle East new growth opportunities on a sustained basis through an outstanding partner. International private banking business is and remains an important strategic pillar for the LLB Group.”

In July, Rothschild acquired Tenalis, an independent advisory firm based in Zurich, through its Swiss Wealth Management unit, Rothschild & Co Bank.