The diversity of Ras Al Khaimah’s economy is helping it to weather the downturn caused by the oil price crash, credit ratings agencies say.
Although the northern emirate has not totally escaped the effects of the spending brakes applied by the UAE and other regional governments because of lower oil and gas revenues, it will be bolstered by continued spending on infrastructure projects as a countermeasure to the economic slowdown.
“We still expect real GDP [the value of all goods and services produced domestically, after adjusting for inflation] to expand by 4.5 to 5 per cent per year in 2015 to 2017, driven by construction, rising tourist inflows and manufacturing growth,” Fitch said Friday in a report that affirmed RAK’s long-term credit rating at A.
Last year, RAK’s economy grew 4.6 per cent, according to the government.
The emirate’s tourism sector has expanded rapidly recently and the RAK tourism authority last week reported a record number of visitors for the third quarter – up 14 per cent quarter-on-quarter to about 200,000.
Ras Al Khaimah’s hotel revenue grew 22 per cent quarter-on-quarter to about Dh205 million in the third quarter.
RAK is among the smallest emirates in the federation, with a population of about 300,000. Its wealth rests on real estate and the hospitality sector, as well as a handful of export-focused industries – with companies such as RAK Ceramics, RAK Cement and Gulf Pharmaceuticals among them – which also experienced robust growth recently.
The tourism sector is making efforts to expand into business events, a plan designed to attract foreign investment to the emirate’s industrial free zones.
The UAE was hit hard by the global financial crisis seven years ago but has followed a fairly conservative fiscal path since.
Standard & Poor’s affirmed its debt rating on RAK last month. “RAK’s relatively diverse economic base and strong public finances will offset slower regional demand and lack of monetary policy flexibility,” it said with references to the emirate’s membership of the federal budget process and the dollar-pegged currency.
Ras Al Khaimah has just a small direct exposure to the hydrocarbons sector through RAK Gas, from which the government derived 15 per cent of its revenue last year, down from 26 per cent in 2013. But it is exposed more broadly via the federal budget and implied central government guarantees.
Fitch, which had forecast a budget deficit for Ras Al Khaimah, estimates that the emirate’s budget would rise to a surplus this year of 1.1 per cent of GDP, from 0.8 per cent last year. Fitch and S&P criticised Ras Al Khaimah’s lack of government transparency and bureaucratic development. According to Fitch, RAK’s budgeting process “is not yet methodologically mature”, so there are many gaps that can only be filled in via federal data interpolation.
Improvement on that front might help improve the emirate’s debt ratings, said Fitch and S&P.
amcauley@thenational.ae
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The specs
Engine: 2.7-litre 4-cylinder Turbomax
Power: 310hp
Torque: 583Nm
Transmission: 8-speed automatic
Price: From Dh192,500
On sale: Now
Blackpink World Tour [Born Pink] In Cinemas
Starring: Rose, Jisoo, Jennie, Lisa
Directors: Min Geun, Oh Yoon-Dong
Rating: 3/5
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The specs
Engine: 3.9-litre twin-turbo V8
Transmission: seven-speed
Power: 720hp
Torque: 770Nm
Price: Dh1,100,000
On sale: now
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
UAE currency: the story behind the money in your pockets
How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
The bio:
Favourite holiday destination: I really enjoyed Sri Lanka and Vietnam but my dream destination is the Maldives.
Favourite food: My mum’s Chinese cooking.
Favourite film: Robocop, followed by The Terminator.
Hobbies: Off-roading, scuba diving, playing squash and going to the gym.
RESULTS
Manchester United 2
Anthony Martial 30'
Scott McTominay 90 6'
Manchester City 0
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Israel Palestine on Swedish TV 1958-1989
Director: Goran Hugo Olsson
Rating: 5/5
Drivers’ championship standings after Singapore:
1. Lewis Hamilton, Mercedes - 263
2. Sebastian Vettel, Ferrari - 235
3. Valtteri Bottas, Mercedes - 212
4. Daniel Ricciardo, Red Bull - 162
5. Kimi Raikkonen, Ferrari - 138
6. Sergio Perez, Force India - 68
About Proto21
Date started: May 2018
Founder: Pir Arkam
Based: Dubai
Sector: Additive manufacturing (aka, 3D printing)
Staff: 18
Funding: Invested, supported and partnered by Joseph Group
Salah in numbers
€39 million: Liverpool agreed a fee, including add-ons, in the region of €39m (nearly Dh176m) to sign Salah from Roma last year. The exchange rate at the time meant that cost the Reds £34.3m - a bargain given his performances since.
13: The 25-year-old player was not a complete stranger to the Premier League when he arrived at Liverpool this summer. However, during his previous stint at Chelsea, he made just 13 Premier League appearances, seven of which were off the bench, and scored only twice.
57: It was in the 57th minute of his Liverpool bow when Salah opened his account for the Reds in the 3-3 draw with Watford back in August. The Egyptian prodded the ball over the line from close range after latching onto Roberto Firmino's attempted lob.
7: Salah's best scoring streak of the season occurred between an FA Cup tie against West Brom on January 27 and a Premier League win over Newcastle on March 3. He scored for seven games running in all competitions and struck twice against Tottenham.
3: This season Salah became the first player in Premier League history to win the player of the month award three times during a term. He was voted as the division's best player in November, February and March.
40: Salah joined Roger Hunt and Ian Rush as the only players in Liverpool's history to have scored 40 times in a single season when he headed home against Bournemouth at Anfield earlier this month.
30: The goal against Bournemouth ensured the Egyptian achieved another milestone in becoming the first African player to score 30 times across one Premier League campaign.
8: As well as his fine form in England, Salah has also scored eight times in the tournament phase of this season's Champions League. Only Real Madrid's Cristiano Ronaldo, with 15 to his credit, has found the net more often in the group stages and knockout rounds of Europe's premier club competition.
MATCH INFO
Euro 2020 qualifier
Croatia v Hungary, Thursday, 10.45pm, UAE
TV: Match on BeIN Sports
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Fifa Club World Cup:
When: December 6-16
Where: Games to take place at Zayed Sports City in Abu Dhabi and Hazza bin Zayed Stadium in Al Ain
Defending champions: Real Madrid
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