RAK economy growth expected at 2.5% in 2018 December 02,2018
Standard and Poor’s (S&P) credit rating agency has upgraded the outlook of Ras Al Khaimah credit ratings to stable; following the financial situation progress. S&P set RAK long term credit rating at A/A-1.
In its recent report, S&P stated that this step stem from its firm belief that RAK government is capable of maintaining a strong financial situation backed by additional revenue resources; higher than previously estimated. It is worth mentioning that many government-owned companies performing as part of the Government departments.
S&P expects RAK real GDP growth raise from 1.5% in past year to 2.5% this year and around 2.3% next year. S&P also estimated growth to hit 3% and 2.5% in 2020 and 2021 respectively.
S&P also noted that government debt burdens regressed after instrument payment in past October. It added that RAK average financial surplus reached around 1% of GDP from 2014 to 2017.
The Agency expected RAK to post financial surplus equivalent to the average of 0.5% of GDP between 2018 and 2020.
In addition, general government revenues are estimated by about 8% of RAK GDP. Spending requirements are not expected to surpass this level within the current year period and by 2021.
S&P also highlighted RAK public debt levels decrease. According to the agency, levels are not expected to surpass 11% of GDP by current year end. S&P estimated indebtedness level continuous decrease with time. The agency noted that instrument payment contributed to debt burdens decrease to maximum 5.1% of revenues in 2018. S&P expected government to maintain net assets up to 4.5% of GDP from 2018 to 2021.