Dubai-based Al Salam Investment and HSH Nordbank plan to launch an Islamic finance house in 2009, as the German bank looks to tap the Islamic finance sector in the Gulf Arab region.

"We see opportunity and change in this region and this partnership will ensure we have the financial muscle and expertise to be at the forefront of the turnaround," said Pegman Haghshenas, chief executive of Al Salam Investment, in a statement on Sunday.

No details on the value of the joint venture were given.

The company will likely register on the Dubai International Financial Centre, Haghshenas said.-Reuters