"Fitch" Raising the credit rating of the Emirate of Ras Al Khaimah to the level "A+"
Ras Al Khaimah, May 21 / WAM / Fitch, in its annual report, raised the credit rating of the Emirate of Ras Al Khaimah from level “A” to “A+”, stressing that it was based on the promising growth prospects for the emirate in the medium term. And the large and numerous investment projects in it, and its continuation of economic diversification plans.
The agency indicated, in its report, that the large tourism projects in the Emirate of Ras Al Khaimah, including world-class hotels, luxury beach resorts, and distinguished entertainment facilities, are promising opportunities for investors and important elements for attracting more investments and enhancing its economic flexibility.
The agency confirmed that these major projects play a major role in enhancing investor confidence, expecting that Ras Al Khaimah will continue to attract global investments, and as a result it expects the emirate to achieve growth of 6.2% in 2024, and 5% in 2025.
An official spokesman for the Ras Al Khaimah government said: The international agency Fitch raised the credit rating of the Emirate of Ras Al Khaimah to the “A+” level, embodying its success in consolidating the foundations of a strong, flexible and diversified economic structure, thanks to the vision and directives of His Highness Sheikh Saud bin Saqr Al Qasimi, Member of the Supreme Council. Ruler of Ras Al Khaimah, as the emirate has witnessed significant growth for several years, until today it has become an attractive center for investment and tourism, and an ideal destination for living, working and exploring.
He added: There is no doubt that the report will contribute to enhancing investor confidence in the Emirate of Ras Al Khaimah, and will shed light on its economic and commercial opportunities. We look forward during the coming period to achieving more growth in conjunction with the near completion of major investment projects, and reaping the fruits of sustainable and comprehensive development plans across various sectors.
The Fitch report indicated that expectations of an increase in the volume of government revenues have contributed to strengthening the credit rating of the Emirate of Ras Al Khaimah, as the agency expected that the percentage of the emirate’s government revenues’ contribution to the gross domestic product will rise during the year 2024 to 22.9%, and in the year 2025 to 21. 8%, compared to 20% in 2022, and 21.5% in 2023.
The agency explained that revenue growth expectations in Ras Al Khaimah are based primarily on investment projects currently under development, and the adoption of corporate tax at the state level.
The agency estimates that the emirate will achieve higher growth in 2026, coinciding with the start of operation of an increasing number of investment projects, which will be accompanied by an increase in the flow of tax revenues.
In its report, the agency highlighted the development of the governance system of companies owned by the government of Ras Al Khaimah, data collection, and financial planning and control frameworks, which support the optimal use of financial resources and help improve the decision-making process.
The report pointed out the advantage that the emirate gained from the good level of liquid assets, that is, assets that are easy to convert into cash.
The Emirate of Ras Al Khaimah is home to a thriving manufacturing sector that contributes about 30% of the GDP, and the rest of the GDP is distributed across a variety of sectors, which reflects the diverse nature of the emirate’s economy and its ability to attract small, medium and large companies.
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