Macquarie Group has signed an agreement with Bahrain's Gulf Finance House to offer Islamic investment products in the Middle East.

The joint venture is part of the Australian investment banking major's bid to expand its footprint in the area and eventually allow it to trade regional equities.

Australian-listed Macquarie has been seeking to boost its Middle Eastern presence, especially as its competitors have been ramping up their investment banking and wealth management offerings in the region.

The deal will be completed through the sale of $100 million of GFH convertible bonds to Macquarie and is still subject to regulatory approval.