The emirate has injected Dh16 billion (US$4.35bn) of capital into five of the emirate’s biggest banks, joining governments around the world that have provided direct support for lenders wrestling with fallout from the global financial crisis.

'The Government believes that this strategic initiative is an appropriate and proactive response to ensure that the strong confidence in Abu Dhabi’s financial institutions is further enhanced,' said a statement from the Department of Finance.

The capital injections, which were announced after the close of trading on markets on Wednesday, included Dh4bn each for the National Bank of Abu Dhabi, Abu Dhabi Commercial Bank and First Gulf Bank and Dh2bn each for Union National Bank and Abu Dhabi Islamic Bank, according to statements by the individual banks.

The National