Magic circle firms Allen & Overy (A&O) and Linklaters have bagged plum mandates advising on the $13bn (£6.6bn) merger bid between Dubai's two largest banks – Emirates Bank International (EBI) and National Bank of Dubai (NBD).

A&O is advising long-term client NBD, fielding a team out of its 45-lawyer Dubai office headed by relationship partner Simon Roderick. Linklaters is advising EBI with Dubai managing partner Ewan Cameron leading.

While neither bank has made a formal announcement, the merger has been approved by the Dubai authorities and is expected to be given the green light in the coming weeks. Local lawyers say the merger, if successful, is likely to spark a series of banking tie-ups in the region.

Across Europe and the US, banking has been a rapidly consolidating sector with recent notable examples including the ongoing £80bn merger bid between Barclays and ABN Amro. The deal has generated roles for a raft of firms including A&O and magic circle rival Clifford Chance (CC), which are advising ABN and Barclays respectively.

News of the instruction follows the announcement by A&O last week that it is to expand its presence in the region by launching in Riyadh, its second base in the Middle East.

A&O has been attempting to secure more corporate work in the region and last year the firm transferred London corporate partner Pervez Akhtar to Dubai. Other firms are making similar moves; last week CC announced it is to transfer London corporate partner Iain Hunter to Dubai.

The NBD deal is the latest in a string of significant corporate mandates A&O has picked up in recent months. Other notable deals include advising Imperial Tobacco on its A11.5bn (£7.85bn) approach for Spanish rival Altadis.