Ras Al Khaimah has entered into a strategic growth partnership with the U.K. Government aimed at exploring avenues for collaboration in trade and industry. This initiative seeks to enhance the already strong ties between the two parties by extending their cooperation into additional fields such as education, culture, and heritage.
The signing ceremony, WAM reported, took place in the presence of H.H. Sheikh Saud bin Saqr Al Qasimi, Supreme Council Member and Ruler of Ras Al Khaimah, along with H.H. Sheikh Mohammed bin Saud bin Saqr Al Qasimi, Crown Prince of Ras Al Khaimah, and the U.K. Secretary of State for Business and Trade, the Rt Hon Jonathan Reynolds MP.
The agreement was formalized between Ras Al Khaimah’s Investment and Development Office (IDO) and the U.K. Government’s Department of Business and Trade. It was signed by Sheikh Khalid bin Saud Al Qasimi, Vice Chairman of IDO, and His Excellency Oliver Christian, His Majesty’s Trade Commissioner for the Middle East and Pakistan, who also serves as His Majesty’s Consul General in Dubai and the Northern Emirates.
The partnership outlines a commitment to encourage and explore opportunities for enhancing cooperation in the realm of industrial growth while also emphasizing the intention to support and facilitate trade in both directions between the U.K. and Ras Al Khaimah.
Empowering growth
Sheikh Khalid bin Saud Al Qasimi noted that the day marked a significant milestone in Ras Al Khaimah’s dedication to fostering robust international partnerships that stimulate economic growth and innovation. He expressed that the establishment of this growth partnership agreement with the U.K. Government’s Department of Business and Trade would enhance trade relations and open new avenues for collaboration across various sectors. He believed that these diverse exchanges would not only benefit their economies but also enrich their communities through the promotion of shared knowledge and cultural understanding.
Read more: Tourism soars in Ras Al Khaimah: 1.22 million visitors in 2023
He also mentioned that the agreement reflects Ras Al Khaimah’s vision for a prosperous future, where both parties could leverage their strengths to create sustainable development opportunities. He expressed eagerness to explore new paths that would empower businesses and cultivate a dynamic environment for innovation and growth.
Commitment to cooperation
Jonathan Reynolds MP conveyed that it was a privilege to witness the signing of this memorandum of understanding between the United Kingdom and Ras Al Khaimah, indicating that it would lay the groundwork for significant industrial cooperation, building upon the deep and historic relationship with the UAE. He highlighted the myriad opportunities available for British businesses in the Northern Emirates across various sectors and emphasized their shared commitment to economic growth for both U.K. and Ras Al Khaimah enterprises.
Areas for collaboration
The agreement identifies numerous sectors where enhanced collaboration between the U.K. and Ras Al Khaimah could lead to mutual growth, including investment, education, culture, and heritage, with a particular emphasis on trade. Additionally, it aims to explore the creation of a joint business incubator in Ras Al Khaimah, providing a platform for U.K. companies to expand into the UAE and the wider Middle East market.
Mutual interests
Both Ras Al Khaimah and the U.K. have outlined their mutual interest in exploring potential collaboration in areas such as supporting major development projects within the emirate, engaging in discussions about food security and agricultural strategies, promoting Ras Al Khaimah roadshows in the U.K., and cooperating in the fields of art, culture, and education.
Credit rating upgrade
In a notable development, Ras Al Khaimah’s credit rating was upgraded to ‘A+’ from ‘A’ by Fitch Ratings in May 2024, reflecting the emirate’s improved credit metrics driven by stronger medium-term growth forecasts. The emirate’s ambitious tourism initiatives, which include world-class hotels, luxurious beach resorts, and high-end leisure facilities, are viewed as promising opportunities for investors and are expected to attract further investment into the region. As a result, Ras Al Khaimah is projected to continue drawing global investments, with growth forecasts of 6.2 percent for 2024 and 5 percent for 2025.
Factors influencing growth
The anticipated increase in government revenue has also played a role in bolstering Ras Al Khaimah’s credit rating. This positive revenue forecast is linked to ongoing investment projects and the implementation of a nationwide corporate tax. Fitch also acknowledged improvements in the governance of State-Owned Enterprises (SOEs) within Ras Al Khaimah, recognizing enhanced data collection practices and better macro-fiscal planning and control frameworks. These factors contribute to the efficient allocation of fiscal resources and strengthen policymaking.
Economic diversity
Ras Al Khaimah, the northernmost of the UAE’s seven Emirates, boasts a thriving manufacturing and industrial sector, which is the primary contributor to the emirate’s overall GDP, accounting for approximately 30 percent. The GDP composition is diverse, reflecting the emirate’s ability to attract and retain businesses across a spectrum of sectors, from small and medium-sized enterprises to large international corporations.
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