Diversity in Ras Al Khaimah’s economy, notably the tourism sector, is supporting growth despite downturn caused by falling oil prices.
Continued spending on infrastructure projects are reported to be counteracting the economic slowdown, easing the effects of spending brakes applied by the UAE and other regional governments, according to credit ratings agencies.
“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 year in 2015 to 2017, driven by construction, rising tourist inflows and manufacturing growth,” said Fitch in a report that affirmed RAK’s long-term credit rating at A.
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Ras Al Khaimah’s tourism sector expanded in the third quarter, up 14% quarter-on-quarter to about 200,000.
The emirates hotel revenue also grew, rising 22% quarter-on-quarter to about US $68 million in the third quarter.
The tourism sector is also continuing in its efforts to move into business events, a strategy designed to attract foreign investment to the emirate’s industrial free zones.
RAK’s wealth continues to depend largely on real estate and the hospitality sector, in addition to a minority of export-focused industries.
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