Ras Al Khaimah’s credit rating has been upgraded to ‘A+’ from the previous ‘A’ by the international credit rating agency Fitch Ratings. The upgrade reflects the emirate’s improved credit metrics driven by stronger medium-term growth forecasts.
Mega tourism projects boost investment, economic resilience
Ras Al Khaimah’s mega tourism projects, including world-class hotels, luxurious beach resorts, and high-end leisure facilities, are seen as promising opportunities for investors and a catalyst to attract further investment into the emirate. These projects have played a key role in boosting investor confidence, and Ras Al Khaimah is projected to continue to attract global investments, resulting in growth forecasts of 6.2 percent in 2024 and 5 percent in 2025.
Strong economic fundamentals and governance
Commenting on the upgraded rating, a spokesperson for the Ras Al Khaimah Government stated that the emirate’s A+ credit rating is owed to its strong economic fundamentals,. This is also based on the vision and directives of the emirate’s leadership, the spokesperson added.
The spokesperson highlighted Ras Al Khaimah’s significant growth over the years, making it an attractive investment and tourism hub. They also noted the strong institutional governance and policy framework implemented to establish a solid foundation for the emirate’s growth.
Read more: Emirate of Sharjah ‘BBB-/A-3’ ratings affirmed; outlook stable: Report
Increased government revenue, fiscal management
Higher projected government revenue has also contributed to boosting Ras Al Khaimah’s credit rating. The improved revenue forecast for the emirate is based on the investment projects and the introduction of the country-wide corporate tax. Fitch also reported on Ras Al Khaimah’s improved governance of State-Owned Enterprises (SOEs). The agency noted Ras Al Khaimah’s improved data collection. Furthermore, the report recognized Ras Al Khaimah’s improved macro-fiscal planning and control frameworks. These factors support the efficient use of fiscal resources and strengthen policymaking.
Diverse and thriving economy
Ras Al Khaimah, the northernmost of the UAE’s seven Emirates, is home to a thriving manufacturing and industrial sector. This sector is the main contributor to the emirate’s overall GDP, representing about 30 percent. Moreover, the emirate’s GDP composition is split over a variety of complementary sectors. This highlights the diverse nature of the economy and its ability to attract and retain businesses, from SMEs to large international companies.
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