£7bn Middle East boost for Barclays
Banking giant Barclays said Middle Eastern investors were pumping up to £7.3 billion into the business.
The cash injection from Qatari investors and the Abu Dhabi royal family comes as the bank looks to avoid calling on taxpayer funds to strengthen finances weakened by the credit crunch.
The funding move follows an earlier £4.5 billion cash call by the bank in June.
Qatar Holding and Challenger - a wealthy vehicle led by the Qatari royal family - are already investors in the group.
Barclays has also brought on board Sheikh Mansour Bin Zayed Al Nahyan - a member of the Abu Dhabi royal family - as a substantial new investor.
The Middle Eastern trio could end up owning almost a third of the bank when the warrants and notes issued by the bank are converted into ordinary shares.
Barclays said the funding move would allow it to meet the tougher requirements of the Financial Services Authority to help banks withstand financial turmoil.
The cash will boost its core tier one ratio - a key measure of capital strength - to 7.6%, the bank said. It shares rose 8% following the announcement.
Not using public funds to shore up the business also means that Barclays will be able to pay dividends to its shareholders - unlike Royal Bank of Scotland and Halifax Bank of Scotland.
Chief executive John Varley said: "Today's capital raising provides certainty and speed of execution."
