UK-based European Islamic Investment Bank (EIIB) is in talks to acquire a 30 per cent stake in Dubai-based Rasmala Investment Bank, two sources with knowledge of the matter told Reuters on Thursday.

The acquisition, which is set to be completed in early 2012, will be made through a fresh issue of shares by Rasmala which EIIB will buy, the sources said.

Rasmala's chairman, Ali al Shihabi, told Reuters in November that it was in talks about a capital boost.

Rasmala's chief executive officer, Anwar Abu Sbaitan, declined to comment.-Reuters