The UAE Government announced on Wednesday that it is going to implement a special action plan under which it will inject 4.36 billion dollars extra capital into the following financial institutions in the state. The institutions are National Bank of Abu Dhabi, Abu Dhabi Commercial Bank, First Gulf Bank, Abu Dhabi Islamic Bank, and Union National Bank. The recent step is aimed at strengthening confidence in the financial sector which has been shaken as a result of the global financial crisis.

The UAE Government said that it would purchase bonds with no maturity date from five banks as a precautionary step to boost confidence into the UAE banking sector. It is recalled that November 2008 Barclays announced plans to lift 11.8 billion dollars, by selling shares to Abu Dhabi and Qatar as a means of meeting the new capital requirements imposed by the UK government on banks which were looking for government support. Under the plan announced by Barclays Sheikh Mansour bin Zayed al-Nahyan would own up to 16% of Barclays. Zayed al-Nahyan is a member of the royal family of Abu Dhabi and chairman of the International Petroleum Investment Company.

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