By: Ramy Sameeh

Abu Dhabi – Mubasher: Oil prices are expected to reach $60-70 per barrel (pb) within a year, said Ali Majid Al-Mansouri, head of Abu Dhabi’s Department of Economic Development (DED) on Sunday.

Speaking on the sidelines of the fourth session of the Abu Dhabi-Japan Economic Council, which kicked off in the UAE capital on Sunday, the top official noted that he was very optimistic about these projections.

It is expected that the emirate of Abu Dhabi will achieve strong economic growth in the coming years as oil prices rise, Al-Mansouri noted.

Abu Dhabi’s economy was slightly impacted by falling oil prices; however, it is noticeable that there is a rise in crude prices, which is what many global research firms have projected recently, he added.

Oil prices are currently trading at around $47.83 per barrel.

Responding to a question on Moody’s recent downgrade for the emirate’s outlook, Al-Mansouri stated that “Abu Dhabi still enjoys several high credit ratings.”

On Saturday, Moody’s Investors Service downgraded its outlook for the oil-producing emirate to negative due to lack of clarity regarding the Abu Dhabi government’s financial schemes in dealing with the growing deficit and shrinking reserves.

The international ratings agency kept its credit rating for the emirate at ‘Aa2’, due to the presence of large financial reserves and diversified external investments, providing a level of flexibility in dealing with low oil prices.

Translated by: Nada Adel Sobhi