{"id":98225,"date":"2024-11-25T00:00:00","date_gmt":"2024-11-25T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/uae\/sp-global-upgraded-ras-al-khaimahs-sovereign-credit-ratings-with-a-stable-outlook\/"},"modified":"2024-11-25T00:00:00","modified_gmt":"2024-11-25T00:00:00","slug":"sp-global-upgraded-ras-al-khaimahs-sovereign-credit-ratings-with-a-stable-outlook","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/uae\/2024\/11\/25\/sp-global-upgraded-ras-al-khaimahs-sovereign-credit-ratings-with-a-stable-outlook\/","title":{"rendered":"S&P Global upgraded Ras Al Khaimah\u2019s sovereign credit ratings with a stable outlook"},"content":{"rendered":"

S&P upgrades Ras Al Khaimah\u2019s credit rating to A\/A-1 on stronger growth <\/strong>outlook:<\/strong> S&P Global Ratings upgraded Ras Al Khaimah\u2019s (RAK) long- and short-term foreign and local currency sovereign credit ratings to A\/A-1 from A-\/A-2, with a stable outlook, according to a statement<\/a>. The upgrade reflects stronger growth prospects and resilient fiscal performance.<\/p>\n

New tourism projects are to thank: <\/strong>The growth forecast is primarily driven by a \u201csolid pipeline of tourism-related development projects in RAK,\u201d including the Wynn Al Marjan Island integrated resort<\/a>, set to open in early 2027. The project, which is being developed in collaboration with state-owned enterprises RAK Hospitality Holding and Marjan, is expected to contribute 40% of RAK's GDP. <\/p>\n

The improved rating is supported by a strong pipeline of tourism-related projects<\/strong>, including the Wynn Al Marjan Island integrated resort<\/a>, which is expected to open in early 2027. The project\u2014developed with state-owned enterprises RAK Hospitality Holding and Marjan\u2014is projected to contribute 40% of RAK's GDP.<\/p>\n

Non-oil growth is expected to be supported by sectors including mining, economic freezones, real estate, and ports,<\/strong> the report said. These sectors are poised to gain from robust non-oil growth and increased infrastructure investment across the UAE, the GCC, and the Indian subcontinent.<\/p>\n

Real GDP is set to grow by over 4% annually from this year to 2027<\/strong>, with GDP per capita projected to rise to USD 32.8k by 2027 from USD 30k in 2024. <\/p>\n

The government is expected to maintain fiscal surpluses<\/strong> averaging 1.9% of GDP over 2024-2027, supported by conservative fiscal management and a net asset position of about 18% of GDP, the report said. <\/p>\n

The downside risk: <\/strong>RAK could face a downgrade if public finances weaken due to significant cost overruns or underperformance of development projects. Rising interest costs relative to revenue could also pressure the rating.<\/p>\n

\n

OTHER KEY INDICATORS-<\/p>\n