Dubai’s Department of Economic Development has said capital projects will see a slowdown if oil prices remain about $65 a barrel in 2016.

“What has already been started in terms of economic projects will continue,” said Mohamed Lahouel, the department’s chief economist, speaking at a government presentation on 17 December.

If “oil remains at something like $65 a barrel, then capital projects will start to suffer”, he said.

Lahouel said capital spending over 2015 is expected to remain at current levels, even if oil prices stay low.

The oil-exporting nations of the GCC are expecting reduced government revenues over 2015 due to lower oil prices.

Global crude prices have declined by more than 40 per cent since June this year.