The Emirate of Ras al Khaimah got a strong vote of confidence on Sunday when a leading credit rating agency issued a positive outlook based on its sound economic policies. Fitch Ratings said the emirate’s future looks stable and gave an ‘A’ rating. RAK also got ‘F1’ rating for its short-term foreign currency IDR while achieving an ‘AA+’ rating which is equivalent to the UAE’s Country Ceiling.
“Ras al Khaimah continues to make steady progress reducing an already modest debt burden, executing a focused development strategy, and improving data quality to track progress,” said Richard Fox, Head of Middle East and Africa Sovereign Ratings at Fitch.
“Debt is edging down closer to 20 per cent of GDP and the economy has recovered well from the global and regional crisis, showing an impressive ability to diversify markets and attract foreign investment.”
Stabilisation of public finances, strong macroeconomic performance and heavy foreign direct investment are the main rating factors that are boosting the emirate’s economy.
The government of Ras Al Khaimah recently bagged a major tourism mega-project when top Spanish football club Real Madrid announced it will launch its first theme park on an artificial island in the northern emirate to combine tourism and sports, the first ever recreational tourism complex built under the Real Madrid trademark.