Al Khaliji Commercial Bank became the latest Qatari bank to announce plans to raise its capital by 20 per cent by selling a stake to the sovereign fund Qatar Investment Authority (QIA).

In October, the QIA launched a $5.3 billion plan to buy shares of listed banks to shore up investor confidence in banks, amid the global financial crisis.

Al Khaliji said in a statement that its board recommended issuing 144 million new shares to be sold to the QIA at 11.60 riyals ($3.19) each, their closing price on October 12, to increase the share capital by 20 percent.

Similar moves have been announced by several Qatari banks, including Qatar Islamic Bank, Doha Bank, Commercial Bank of Qatar, Qatar Islamic Bank,  Qatar International Islamic Bank and Masraf al-Rayan.-Reuters