Bank of China has opened a branch in Bahrain, becoming the first Chinese bank with a representative office in the Middle East, the bank said on Sunday.
The bank said in a statement it was seeking to capitalise on growing trade between China and the Arab world.
"The Middle East is a key market for China. We will be looking to develop links between the two emerging markets by promoting investment opportunities," it said.
The bank said it was also looking to open an offshore banking unit (OBU) in Bahrain, the region's financial hub.
Bank of China has about 11,610 branches in China and 549 foreign branches in 27 countries.