Region: Even Abu Dhabi needs a stimulus package

While Bahrain might be the most vulnerable Gulf Co-operation Council economy, other GCC states have struggled to develop a more mature and sustainable fiscal model. In early June, Abu Dhabi launched a three-year Dh50bn ($13.6bn) stimulus package to boost the local economy. Fitch Ratings dryly noted that the spending spree “highlights the winding down of fiscal adjustment and suggests that the fiscal policy-making framework has seen little improvement during the period of low oil prices, despite sharp spending cuts and increases in non-oil revenue”.