The report discusses the impact of global financial crisis of 2008 on banking sector of UAE. The middle east nation, UAE is one of the wealthiest nation. The nation current has a strong financial sector with presence of various domestic and foreign banks. The financial crisis was originated from sub-prime mortgage crisis in United State and gradually spread across different nation. UAE because of its relatively less connection with European world was expected to be less affected from the crisis. However, in reality the banking and financial sector severely affected from the crisis hit. During this time central bank of UAE provided different stimulatory packages to rescue the domestic banks. The banking sector in UAE is still in the phase of crisis recovery.