US ratings agency Moody’s Investors Service expects Abu Dhabi’s $13.6bn stimulus package to be fully met by increased oil revenues.

Moody’s says that the Abu Dhabi government adopted an oil price assumption of $50 a-barrel for its 2018 budget, and the conservative revenue forecasts were reflected in constrained expenditure outlays. It adds that the recent rise in oil prices to average over $65 a-barrel since the start of the year has provided the government with significantly more fiscal headroom than the budget anticipated.

The fiscal stimulus package will be spread over a period of three years, amounting to just over a 5 per cent annual increase in government expenditure.

The stimulus package was launched in early June and comprises a set of initiatives covering infrastructure and legislative projects, as well as SMEs, and industrial and social projects.