Ras Al Khaimah can look forward to a surging economy after the pandemic, according to a report by credit rating agency S&P Global.
The emirate is expected to see a growth of around 2.5 percent between 2021 and 2024, it said in the report released this week.
Giving the emirate a rating of A-/Stable/A-2, S&P Global said its forecast was predicated on the expectation that RAK’s government would continue to maintain its fiscal stance over the next two years.
The agency also took into consideration the relatively high levels of wealth generated by Ras Al Khaimah’s economy.
S&P Global also pointed to the success of local and federal initiatives in combating the pandemic as a factor for a positive economic outlook.
It estimated RAK’s economic growth at 3 percent in 2021, with the first half of the year showing a strong rebound from 2020, buoyed by real-estate transactions, mining volumes, cargo trade, and tourist arrivals.
In the near term, the agency expects a broad-based recovery in RAK, supported by increased demand for RAK’s mining sector as global demand picks up.
It highlighted increased demand from Stevin Rock, one of the largest quarrying companies in the world, which is supplying rock to build artificial islands for Abu Dhabi National Oil Company’s Al Hail and Al Ghasha gas projects, which produce gas from the Al Hail and Al Ghasha offshore concessions.
It also pointed to the contract the company signed in April 2021 to supply material for the construction of a rail network from RAK to Abu Dhabi by Etihad Rail, the developer of the UAE’s National Rail Network.
The agency said that its rating assessment takes into account the government’s low revenue base supported by UAE federal expenditure within the emirate, stating that the advantages of UAE membership include low external risks and the likelihood that the UAE would provide support to RAK if needed.