S&P Global Upgrades Ras Al Khaimah’s Credit Rating To A/A-1 With Positive Economic Outlook

Standard & Poor’s (S&P) Global has raised Ras Al Khaimah's credit rating from ‘A-/A-2’ to ‘A/A-1’, maintaining a ‘stable’ outlook. The U.S.-based agency, part of the 'Big Three' credit-rating firms, highlighted that Ras Al Khaimah's economic growth and fiscal health are expected to remain robust in the coming years.

The Emirate's economic strategy is credited for this upgrade. A representative from Ras Al Khaimah Government stated, "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 report highlights Ras Al Khaimah's diverse economy, with growth seen across various sectors. This diversity enhances its ability to attract both talent and businesses ranging from small enterprises to large multinational corporations. The Emirate's GDP is spread over multiple industries, ensuring stability and resilience.

Tourism-related development projects are a key factor in Ras Al Khaimah's growth momentum. These initiatives are expected to significantly boost the Emirate's economy. Additionally, sectors such as mining, real estate, ports, and economic free zones are anticipated to benefit from strong non-oil growth and infrastructure investments within the UAE, GCC region, and Indian subcontinent.

S&P Global forecasts that real GDP growth in Ras Al Khaimah will average around 4% between 2024 and 2027. This growth is driven by ongoing tourism initiatives and infrastructure developments. The agency also expects the government to continue its prudent fiscal management practices during this period.

Ras Al Khaimah stands out as the northernmost Emirate among the UAE's seven Emirates. It boasts a thriving economy with recorded growth across all sectors. Being part of the UAE further supports its credit rating due to shared resources and strategic advantages.

The stable outlook reflects confidence in Ras Al Khaimah’s future economic performance. The Emirate's strategic projects have laid a strong foundation for continued prosperity under visionary leadership. As it continues to develop its infrastructure and diversify its economy, Ras Al Khaimah remains an attractive destination for living, working, visiting, and investing.

With inputs from WAM