Ras Al Khaimah (RAK) is expected to witness a surging economy in the aftermath of the COVID-19 pandemic. According to an assessment conducted by credit rating agency S&P Global for the emirate, economic growth in RAK is expected to return to approximately 2.5% between 2021-2024. In its latest rating released this week, the agency has awarded RAK a rating of A-/Stable/A-2. It added that the emirate's forecast has been predicated on the expectation that the RAK government will continue its efforts to maintain prudent fiscal stance over the next two years.

Ras Al Khaimah's optimistic growth assessment will be supported by relatively high of wealth generated by various sectors in the diversified economy of the emirate. The S&P Global report also underlines that the efforts of local and federal entities in successfully combating the COVID-19 pandemic have served as major factors for a positive economic outlook. In recent weeks, the emirate is low number of new COVID-19 cases as well pandemic-related deaths to the rest of the region and countries across the world.

Speaking about the report, an official spokesperson from the Government of Ras Al Khaimah expressed confidence towards the S&P Global’s latest credit ratings for the emirate and its economy.

"The positive outlook is a result of fiscal prudence and also of the progressive measures we have taken over the to diversify our economy. It can also be attributed to the strong local and national efforts to address Covid-19, with the UAE fully vaccinated about 85% of its population so far," the spokesperson said.

For the year 2021, S&P Global estimated RAK's economic growth at 3%, with the first half indicating a robust rebound from 2020 as supported by real estate transactions, mining volumes, cargo trade, and tourist influx from various countries.

In the coming term, the agency is looking forward to a broad-based recovery in the emirate which will be supported by a rise in demand for mining sector. With global industrial activities rising, the demand is also accelerating in several sectors. In this regard, the agency has particularly highlighted a surge in demand from Stevin Rock, one of the world's largest quarrying companies. It supplies rock for building 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. In April 2021, the Abu Dhabi National Oil Company signed a contract to supply material for the construction of Etihad Rail's rail network from RAK to Abu Dhabi.

In addition, S&P Global talked about Ras Al Khaimah’s position in the federation as a fundamental pillar for maintaining growth and stability. According to the agency, the rating assessment also focuses on the government’s low revenue base supported by UAE federal expenditure within the emirate. It pointed out advantages of UAE membership including low external risks and possibility of the UAE providing necessary to the RAK economy.

WAM