EFG Hermes, the biggest investment bank in Egypt with a market value of $1.08 billion, said it had sealed an agreement first announced in March to form a region-wide investment bank with Qatar's Qinvest.

Under the agreement, Qinvest will control 60 per cent of the new bank, which will be called EFG Hermes Qatar, and provide $250 million to increase its capital, while EFG-Hermes will control the remaining 40 per cent.

According to EFG Hermes, the bank will have the right to sell its shareholding to QInvest at any time after 12 months but before 36 months from the signing for 1 billion Egyptian pounds ($165.4 million).

The alliance has "the aim of creating a leading investment bank with operations in the Arab world and beyond, comprehensively covering the Middle East, Africa, Turkey and South and South East Asia," said the top Egyptian bank which runs offices in nine Arab countries.

EFG Hermes will have to get approval from shareholders and regulators before the bank can be formed.

EFG Hermes, also controls a 65 per cent stake in privately-owned Lebanese bank Credit Libanais, which it bought in 2010 for $542 million.

QInvest, a leading investment bank in Qatar has a paid-up capital of $750 million and offices in Qatar, Turkey and Saudi Arabia, its website says. Its shareholders include Qatar Islamic Bank, other institutional investors and high net worth individuals.-Reuters