DUBAI -- Amid growing pressure from neighboring European partners and the United States, Luxembourg as a financial center aims to cash in on growing trade relations between the Gulf Arab region and the Far East, Luxembourg's Minister of Finance Luc Frieden told Xinhua here Monday.

In an exclusive interview with Xinhua, Frieden said that he regarded the rise of the East as a chance rather than a threat. " We see immense interest from Arab banks to do business in Luxembourg. This is the result of several official visits to the region in recent years."

Despite its ongoing strong position within global financial system, Luxembourg, rated with the highest investment grade triple- A by Standard and Poor's, struggles to prevent capital outflows.

Amid constant pressure from European neighbors and the United States, Luxembourg said last month it would give up its strict bank secrecy law and would disclose client data to their states of origin.

"However, this does not affect Arab customers in any way, as this new regulation is only targeted at customers from the European Union and the United States," said Frieden.

Gulf Arab clients open accounts in Luxembourg "because of its service, its high professional standards in finance and its international network," Frieden said, adding that Chinese businessmen and private customers likewise appreciate Luxembourg's central position in Europe and its openness.

In addition, Frieden said Luxembourg became a leading hub for banking in line with Islamic law or Shari'ah, a mainstream way of banking in the Middle East. The Luxembourg Stock Exchange (LSE) was the first bourse in Europe to list an Islamic bond or sukuk in 1983. As of today, 16 sukuk have been listed on the LSE.

With more than 800 Islamic investment funds managing 1.5 trillion dollars, Luxembourg is also the 5th biggest hub for such financial vehicles which have to abide by strict ethical guidelines of Shari'ah.

Frieden visited Dubai with a 60-member strong delegation of bankers, asset managers and lawyers under the umbrella of Luxembourg for Finance, a government body promoting Luxembourg as a global financial center.

From May 7 to May 9, Frieden and his delegation will attend the Euromoney banking conference in Riyadh, Saudi Arabia. "Saudi Arabia is certainly not that international like Dubai, but it is an important Gulf state and we see immense opportunities for Luxembourg there," said Frieden.