The clearance from the Dubai International Financial Centre allows the bank's ScotiaMocatta division to open an independent branch in one of the Middle East's hubs for international finance.

ScotiaMocatta has operated in Dubai since 1998 through an alliance with the National Bank of Dubai to provide financial services to gold traders, jewellers and others.

The move comes as debt-burdened Dubai struggles to retain its prominence as a centre for Middle East investors and traders.

"Dubai is ideally located in a large wholesale and consumer market and is uniquely positioned to channel gold from the international markets to the ultimate destination," said Pramod Mohan, senior executive officer at the Dubai branch.

- AP