The central bank of the United Arab Emirates has said it is setting up a facility to provide banks with extra liquidity. The liquidity will be available to all UAE as well as foreign banks operating in the UAE. The announcement from the central bank came the day before markets in West Asia reopen after the Eid holiday. The central bank has issued a notice to UAE banks and branches of foreign banks operating in the UAE, making available to them a special additional liquidity facility linked to their current accounts at the central bank, it said in a statement. The bank added that the banking system in the UAE was more sound and liquid than a year ago. The news comes days after the state-owned Dubai World said it would ask for an extension on repaying its debts, sending world stock markets tumbling.