Ras Al Khaimah’s economy to expand until 2027

Ras Al Khaimah’s (RAK) economy is projected to expand by an average 4.2 percent annually until 2027, driven by strong tourism, real estate, manufacturing, and mining performances, S&P Global said.

“We forecast GDP per capita levels to strengthen to about $32,800 by 2027, compared with an estimated $30,000 in 2024,” the rating agency said.

This forecast follows S&P’s decision to upgrade RAK’s long- and short-term foreign and local currency sovereign credit ratings to “A/A-1” from “A-/A-2.”

Upcoming tourism projects and related infrastructure spending are expected to bolster RAK’s mining sector, as well as economic free zones, airports, real estate and industry.

The hospitality sector currently contributes 4 percent of GDP, and real estate accounts for 7 percent. These proportions are likely to increase with new projects ramping up.

Wynn Al Marjan Island integrated resort is by far the emirate’s largest project, costing 40 percent of its GDP. Set to open in early 2027, the project has received the UAE’s first commercial gaming operator’s licence.

Additionally, 20 new hotels are planned to open in the next two to three years, expanding room capacity by 75 percent.

“We expect positive momentum in the emirate’s real estate sector driven by tourism, industrial, and investment-related transactions, especially on the Marjan Island.”

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According to the rating agency, RAK’s economy is more diversified than many GCC peers.

However, there is no single economic sector that primarily drives RAK’s economic activity, with manufacturing, wholesale and retail trade, and construction or real estate activities together contributing 55 percent of GDP. 

Although oil prices still spur economic cycles through fluctuations in demand from Ras Al Khaimah’s oil-dependent trade partners, the impact is less pronounced than in GCC countries heavily reliant on oil revenues.

S&P maintained a stable outlook thanks to strong economic growth and fiscal position forecast.

Risks include potential delays in public investment spending and increased competition from other emirates or regional players, which could dilute RAK’s tourism appeal.