The rating agency stated, “We project GDP per capita levels to strengthen to approximately $32,800 by 2027, compared with an estimated $30,000 in 2024.”
According to S&P Global, the economy of Ras Al Khaimah (RAK) is expected to grow by an average of 4.2 percent per year until 2027, propelled by robust performances in the tourism, real estate, manufacturing, and mining sectors.
Following S&P’s decision to raise RAK’s short- and long-term foreign and local currency sovereign credit ratings from “A-/A-2” to “A/A-1,” this projection was made.
The mining industry in RAK, along with economic free zones, airports, real estate, and industry, is anticipated to benefit from upcoming tourism initiatives and associated infrastructure spending.
Currently, real estate makes up 7% of GDP, while the hospitality industry provides 4%. As new projects ramp up, these proportions are probably going to rise.
At 40% of the emirate’s GDP, the Wynn Al Marjan Island integrated resort is by far the biggest project. The project has been granted the first commercial gaming operator’s license in the United Arab Emirates and is scheduled to operate in early 2027.
In the next two to three years, 20 more hotels are anticipated to open, increasing the number of rooms by 75%.
We anticipate that the tourism, industrial, and investment-related transactions, particularly on Marjan Island, will drive positive momentum in the emirate’s real estate sector.
The rating agency claims that compared to many of its GCC counterparts, RAK’s economy is more diversified.
Nonetheless, no single economic sector dominates RAK’s economy; manufacturing, wholesale and retail commerce, and real estate and building industries collectively account for 55% of GDP.
The impact is less severe than in GCC nations that rely substantially on oil earnings, even though oil prices still influence economic cycles through shifts in demand from Ras Al Khaimah’s oil-dependent trading partners.
Strong economic growth and a forecast of the fiscal condition helped the S&P retain a steady outlook.
RAK’s tourism appeal may be weakened by risks such as possible delays in governmental investment spending and heightened rivalry from other emirates or regional players.
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