The bank, which is 40% owned by the UK government, has appointed Rothschild as an adviser for the sale.

Rothschild provides strategic, M&A, wealth management and fundraising advice and services to governments, companies and individuals worldwide.

Lloyds has only one branch in the UAE but manages about $1.5bn of assets across the region.

In June 2010, ADCB has agreed to acquire the retail banking business of The Royal Bank of Scotland (RBS) in the United Arab Emirates (UAE) for $100m.

Lloyds TSB Middle East offers banking services that includes personal and private banking, commercial banking, corporate banking as well as offshore banking, treasury services, trade finance services and private banking services.