Ras Al Khaimah (Al-Ittihad) confirmed a report issued by “Fitch” credit rating agency Affirming its long-term credit rating for the Emirate of Ras Al Khaimah at “A”, which is considered a medium-high rating, with a stable outlook.
The report emphasized that fixing the classification, which the emirate maintains for the 13th year in a row, is supported by the great advantages that the emirate of Ras al-Khaimah obtains as a result of the development and prosperity enjoyed by the UAE in general, in addition to the low rates of government debt, and the adoption of wise financial management with a high share of per capita GDP of the emirate. Fitch has also given the UAE a long-term credit rating of “AA-” with a stable outlook.
The diversity of economic resources in Ras Al Khaimah, and its strong industrial base, which contributes up to 26% of the emirate’s annual gross output, has contributed to alleviating the economic slowdown in the wake of the global outbreak of the “Covid-19” epidemic. Thoughtful financial planning in the emirate leads to a continuous financial surplus in the budget with a high ability to face crises.
As a result of its enjoyment of a stable environment and being part of the UAE, which enjoys a distinguished position at the regional and global levels, the Emirate of Ras Al Khaimah was able to develop long-term plans and strategies aimed at achieving comprehensive and balanced development in all sectors, which in turn enhanced the flexibility of its economy, which is commensurate with the general economic and financial performance. For the Emirate, as the ratio of public debt to GDP, ratio of debt service to revenue, and ratio of net interest income for the government and private sectors in the Emirate came well below the average in the (A) category. With reference to the future expectations of the Ras Al Khaimah economy, the emirate remains in a strong financial position in the face of the global economic conditions resulting from the ongoing “Covid-19” pandemic, as expectations indicate that the UAE will benefit from the expected rise in oil prices as a result of high demand rates, which coincides with receiving More people in the world have vaccinations against the virus.
The continuous improvement and development processes in the emirate also contribute to reducing the negative economic effects of the pandemic, as the government works to grant facilities and incentives to investors by launching several initiatives that include the public and private sectors, which will enhance and strengthen the emirate’s ability to deal efficiently with global economic challenges in the future. It allows them to take advantage of the expected growth opportunities in the period of recovery from the crisis.