The Bank of New York Mellon is expanding its operations in the Middle East with the opening of a new office in the Dubai International Financial Centre (DIFC).

BNY Mellon described the move as a sign of its "significant commitment" to developing its business in the Middle East.

Hani Kablawi, managing director and head of Middle East & Africa at The Bank of New York Mellon, said: "The growth potential of this region is significant and The Bank of New York Mellon is well placed to help local and regional financial institutions and institutional investors get better access to the global capital markets."

The growing economies of the Middle East - buoyed by record oil prices and trade surpluses - have been a beacon of light for international banks caught up in the credit crisis. The US Treasury estimates that the region's sovereign wealth funds manage between $1.9 trn and $2.9trn in assets, while investment fund activity is growing fast. 

A number of leading investment banks have responded by bulking up their presence in the region. The likes of Citi, UBS, Goldman Sachs, JPMorgan, Deutsche Bank and Morgan Stanley have registered offices in the DIFC, which are increasingly being staffed by senior bankers.

Last month Citi said Alberto Verme, its co-head of global investment banking, would be re-locating to Dubai.  Morgan Stanley and Lehman Brothers have also moved senior bankers to the Middle East this year.

Last year Citi also handed Jervis Smith, one of the most senior executives within its Global Transaction Services division, a new role as the head of international managed funds and Middle East for Citi's financial institutions group. He has been charged with spearheading the expansion of the bank's custody and fund services business in the Middle East

Other global custodians have been slower off the mark, with leading players like State Street and Northern Trust not listed in DIFC's Register of Companies.

Gerald Hassell, president of The Bank of New York Mellon, said a presence in the DIFC was "an important enhancement of our ability to serve our clients in the region".

"The DIFC is the recognised hub for financial services in the Middle East, and being there means that we are well placed to achieve our growth aspirations," he added. 

In addition to its new branch office in the DIFC, BNY Mellon has representative office in Abu Dhabi, Beirut, Cairo, and Istanbul.