Fitch upgrades Ras Al Khaimah credit rating

Ras Al Khaimah, one of the lesser known of the seven emirates that make up the UAE, has seen its credit rating upgraded to A+ by rating agency Fitch.

The upgrade (from A to A+) comes on the back of a number of large-scale investment projects and an economic diversification plan that has led to stronger medium-term growth prospects, stated Fitch.

It is the mega tourism projects that are seen as the most promising opportunities for investors and the catalyst for attracting more money to the northernmost Emirate in the UAE.

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The tourism projects, which include a number of top range hotels and beach resorts, are expected to bring more economic resilience to the Emirate. They have also raised Ras Al Khaimah’s growth forecasts to 6.2% in 2024 and 5% in 2025.

Other contributing factors include higher projected government revenue from the introduction of a country-wide corporation tax, the improved corporate governance of state-owned enterprises, and a comfortable level of liquid assets.

The rating upgrade has been well received by the Ras Al Khaimah hierarchy. A spokesman for the government said: “The Fitch report will further boost investor confidence in Ras Al Khaimah and shine a light on its business and economic opportunities.

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“It reflects the strong institutional governance and policy framework that the Emirate has implemented over the years, establishing a solid foundation for its growth. We look forward to robust growth in the upcoming period as our mega projects and cross-sector sustainable development plans begin to take shape.”

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