Fitch Upgrades Ras Al Khaimah’s Credit Rating to A+ on Strong Growth Forecasts

UAE, 22 May, 2024 :  Fitch Ratings has upgraded Ras Al Khaimah’s credit rating to ‘A+’ from ‘A’, reflecting improved credit metrics and stronger medium-term growth forecasts driven by large investment projects and economic diversification.

The emirate’s mega tourism projects, including world-class hotels and high-end leisure facilities, have been pivotal in boosting investor confidence. These developments are expected to attract further investment, with growth forecasts of 6.2% in 2024 and 5% in 2025.

A Ras Al Khaimah Government spokesperson attributed the upgrade to the emirate’s strong economic fundamentals and visionary leadership. The improved rating is seen as a testament to Ras Al Khaimah’s attractiveness as an investment and tourism hub.

Higher projected government revenue has also played a role, with forecasts indicating an increase to 22.9% of GDP in 2024 from 21.5% in 2023. The introduction of a country-wide corporate tax and new investment projects are expected to further boost revenue.

Fitch highlighted Ras Al Khaimah’s improved governance of State-Owned Enterprises, data collection, and macro-fiscal planning, which support efficient use of fiscal resources. The emirate’s strong liquid assets and thriving manufacturing and industrial sectors, which contribute about 30% of GDP, further enhance its economic resilience.

Source : www.wam.ae