The announcement, from the European private banking house that it is teaming up with Liechtenstein's LLB Group, speaks to continued development of the Gulf region's wealth management sector.

It seems that almost every week now, a firm announces that it is setting up business in the Gulf region or expanding into the wealth management market there. The latest announcement comes from Rothschild & Co, which has signed a referral agreement with Liechtenstein’s LLB Group.

The move comes a year after Rothschild & Co’s wealth management business was launched in Dubai.

Under the business pact, around 20 employees of LLB will move to Rothschild & Co’s wealth management business, with a potential of around SFr1 billion ($1.25 billion) in assets. Rothschild & Co said it aims to employ all current LLB employees, as well as take on LLB´s existing office in Dubai. Together, Rothschild & Co's wealth division in the Middle East, led by Sascha Benz, head of Rothschild & Co Wealth Management, Middle East, will have around 25 employees in total.

Liechtensteinische Landesbank will recommend Rothschild & Co Bank AG as a future partner to clients in the United Arab Emirates, LLB said in a statement. 

Both parties agreed not to disclose the referral price.

"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," Christoph Reich, interim Group CEO, said.

“As a strategically important location with significant growth potential, expanding its presence in Dubai through a complementary portfolio of clients in the UHNW space enables Rothschild & Co to achieve a broader market reach, operational efficiencies, and an expanded service offering across public and private markets and corporate advisory,” Rothschild & Co said in a separate statement today. 

"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,” Alexandre de Rothschild, executive chairman of Rothschild & Co, said. “This represents our high conviction in the UAE’s potential, given the increasing concentration of both regional and global wealth here."

Laurent Gagnebin, partner and CEO of Wealth Management Switzerland, Rothschild & Co, added: "The deal with LLB now gives us a real boost and will allow us to quickly consolidate and further expand our market position. I am convinced that we have a strong offering for our current and future clients in the region and can provide them with optimal support in structuring and managing their assets in the increasingly volatile world we live in.”

Firms such as private banks and advisory businesses continue to set up shop in the region. For example, as reported today by WealthBriefing, Banque de Commerce et de Placements, aka BCP, the Geneva-headquartered bank, has acquired a licence from the Dubai Financial Services Authority enabling its representative office in Dubai to become a fully-operational branch. In late June, Dubai-headquartered Hoxton Wealth, an international wealth manager, achieved regulatory approval from the Dubai Financial Services Authority. Late in August, Lunate, the Abu Dhabi-based investment house overseeing $110 billion in assets, initially invested $2 billion into hedge fund firm Brevan Howard, forming a platform to be domiciled in the Abu Dhabi Global Market.

Rothschild & Co was until recently listed in Paris (the family took the firm private). It includes the UK business that was NM Rothschild: The UK and French businesses merged in 2003.