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RAS AL KHAIMAH - International credit ratings agency Standard & Poor’s (S&P) Global has upgraded Ras Al Khaimah’s rating from ‘A-/A-2’ to ‘A/A-1’ with a ‘stable’ outlook.
U.S.-based S&P Global, one of the ‘Big Three’ credit-ratings agencies, stated that the Emirate’s stable outlook reflected the agency’s expectation that Ras Al Khaimah’s economic growth and fiscal position will remain strong over the forecast period.
The report directly referenced Ras Al Khaimah’s “solid pipeline of tourism-related development projects”, which stand to strengthen the Emirate’s growth momentum.
Moreover, the agency expected that Ras Al Khaimah’s mining sector, economic free zones, real estate and ports would all benefit from strong non-oil growth and infrastructure spending in the UAE, GCC and the Indian subcontinent.
The Emirate’s rating is also supported by it being a member of the UAE.
A spokesperson for Ras Al Khaimah Government said, “Ras Al Khaimah’s successful economic strategy and ambitious but carefully considered projects paved the way for the Emirate’s upgraded rating and ‘stable’ outlook by S&P Global.
Guided by the visionary leadership of H.H. Sheikh Saud bin Saqr Al Qasimi, Supreme Council Member and Ruler of Ras Al Khaimah, RAK Government has established solid foundations for a resilient, diverse and dynamic economic model, which further emboldens the Emirate in its aspirational endeavours to continuously enhance its appeal as a destination of choice to live, work, visit, and invest.”
The international credit agency estimates real GDP growth to average about 4% over the 2024-2027 period, driven by ongoing tourism and infrastructure projects. The report also expects RAK Government to maintain conservative fiscal management.
Ras Al Khaimah, the northernmost of the UAE’s seven Emirates, is home to a thriving and diversified economy with growth recorded and projected across all industries. The Emirate’s GDP composition is split over a variety of sectors, boosting its ability to attract and retain talent and businesses, from SMEs to large international companies.