OK, maybe not. But it’s not looking too good, either, what with the latest Christie’s art and jewelry auction in Dubai missing estimates by half, as oil and equities prices continue to slump. Undaunted, Barclays is forging ahead, taking a loaner from Middle Eastern investors to the tune of $12.02 billion. And, now, for why the bank would rather do that than consider the alternative...

Barclays PLC said Friday it is raising £7.3 billion ($12.02 billion) in capital from a number of Middle Eastern investors in a move that will enable the British bank to avoid taking government bailout funds.

The bank's new capital will come from about £4.3 billion in reserve capital instruments and £3 billion in mandatory convertible securities. The main investors are based in Qatar and Abu Dhabi and include Qatar Holding and Sheikh Mansour Bin Zayed Al Nahyan.

Barclays needs to raise funds to meet new U.K. government capital benchmarks for its banks as part of the government's £400 billion bailout plan laid out earlier this month. Barclays Chief Executive John Varley had until March to raise all the money, and the early move to secure funds is likely to refute skepticism that the bank might have trouble in choppy markets.

While some of the U.K.'s biggest banks have turned to the government for funding, Barclays sought to avoid selling shares to the U.K. government, a move that would carry conditions such as a limit on dividend payments to shareholders and would give the government a say in some board seats. Barclays also talked with two Russian banks but nothing has come from it.

Barclays's capital plans could result in other investors providing capital.

Barclays on Friday also announce its interim financial update, saying income growth in the third quarter was strong, with costs growing at about the same rate. Impairment charges grew at the same rate as in the first half.

It had been scheduled to report its update next month. The report is aimed at calming investor concern about the impact of the market turbulence in recent weeks.

The Middle East has long been seen as a potential funding source, but that had diminished in recent weeks as the financial turmoil reached the states with deep government funds. Credit Suisse Group, for example, recently raised about $9 billion from a group led by Qatar Investment Authority.

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