Ras Al Khaimah’s economic expansion is projected to experience a modest decline, averaging 3.3 percent in 2025-2026, according to a recent S&P report.
S&P Global Ratings reaffirmed the emirate’s sovereign credit rating, stating its foreign currency and local currency ratings at A/Stable/A-1.
Following this period, S&P anticipates real GDP growth will accelerate to an average of 4.3 percent in 2027-2028, driven by robust performances in tourism, real estate, manufacturing, and mining.
Wholesale and retail trade, along with manufacturing—which together constitute 50 percent of RAK’s exports—contribute approximately 45 percent to RAK’s real GDP. “RAK’s diversified non-oil economy and ongoing infrastructure projects will continue to support its medium-term growth trajectory beyond 2026,” S&P remarked.
The agency projects real GDP growth will maintain a steady rate just above 4 percent annually in 2027-2028, with GDP per capita expected to rise to around $32,800 by 2028. “We expect upcoming tourism projects and the related infrastructure spending to help strengthen RAK’s mining sector, as well as its economic free zones, airport, and real estate sector,” the ratings agency noted.
The most significant of the tourism initiatives is the Wynn Al Marjan Island integrated resort, which will account for about 40 percent of GDP. Set to open in early 2027, this resort has been granted the commercial gaming operator’s license—the first of its kind in the UAE. Furthermore, there are plans to launch approximately 20 new hotels in the next two to three years, leading to a projected 75 percent increase in hotel room capacity. To alleviate the risk of overcapacity, authorities plan to target a broader market and diversify tourism offerings.
Thriving mining sector in RAK
S&P also foresees positive momentum in RAK’s real estate sector, fueled by transactions related to tourism, industry, and investment, particularly on Marjan Island. This island has seen substantial growth in primary residential sale prices over the past two years. RAK’s mining sector, contributing about 25 percent of the emirate’s exports, continues to thrive due to ongoing infrastructure projects across the UAE and GCC. Stevin Rock, one of the world’s largest limestone quarrying companies and fully owned by the RAK government, supplies rock for major construction and reclamation projects within the UAE, including local initiatives in RAK and property developments in Abu Dhabi and Dubai.
S&P believes that the government’s strong net asset position helps mitigate the risks associated with contingent liabilities. The RAK government’s gross debt was notably low at 8 percent of GDP in 2024, which includes a $1 billion sukuk that the government refinanced in March 2025. With liquid assets averaging 28 percent of GDP over the period from 2025 to 2028, these significantly exceed government debt. RAK’s liquid assets are predominantly held in cash and RAKBANK stock. “Although the government has increased its overall stake in RAKBANK and is a majority shareholder, we view this holding as opportunistic rather than strategic, and ultimately a timely source of funding for the government if it needs it. We forecast that the government’s interest burden will remain below 5 percent of government revenue due to its minimal debt stock,” the agency stated.
