UBS has become the latest international investment bank to join the fledgling financial centre of Dubai, taking to nine the number of banks that have signed up this year.

The decision by the Swiss bank to open an office in the Dubai International Financial Centre means 249 companies have joined since it launched in 2004. Dubai is locked in a fierce battle with neighbouring Qatar to build an international financial centre in the Middle East, bridging the European and Asian time zones. The Qatar Financial Centre Authority, launched last year, counts Credit Suisse and Barclays Bank in its ranks. Barclays, which also has an office in Dubai, obtained the 18th licence issued by Qatar earlier this month. This covers products offered through its investment banking arm, Barclays Capital. Qatar's rapid development suggests it could soon catch up with Dubai. Dubai offers member institutions 100% foreign ownership, zero tax on income and profits, and no restrictions on foreign exchange. UBS intends to open a Dubai branch office by the end of the year to expand its global wealth management, investment banking and asset management businesses. Initial investment bank take-up in Dubai started slowly, although Jefferies International, Citigroup, Lehman Brothers, Goldman Sachs and Sumitomo Mitsui Banking Corporation have registered since May. Morgan Stanley, Babcock & Brown and Standard Bank joined in January. Last year, licences were given to Deutsche Bank Aktiengesellschaft, Merrill Lynch and Credit Suisse. Large asset managers, including Mellon Global Investments and Invesco Asset Management, are among the registered companies. More than 30 banks, including private and national organisations, are included.