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Significance

Major banks and investment companies have also announced planned mergers in 2016-17. The Ipsos City Index in July named Abu Dhabi the second-best place to live and work, overtaking Paris and London. On the ground, however, the oil-price driven slowdown is finally starting to hit residents hard.

Impacts

The government will increase its emphasis on economic diversification, although this will be a difficult task.

Loss-making state airline Etihad is likely to face another restructuring.

Abu Dhabi’s vast reserves will enable it to retain its position as leader of the United Arab Emirates (UAE).

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