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Investor confidence surge: RAK's economic growth and investment appeal
The hospitality sector in RAK is booming, with significant investments in projects that aim to elevate the emirate's profile as a tourist hotspot
- PUBLISHED: Thu 2 Oct 2025, 8:00 AM
Ras Al Khaimah (RAK) has emerged as a globally connected business gateway, actively attracting international capital and foreign direct investment by strategically prioritising world-class infrastructure, quality lifestyle, and industrial expansion, according to a report.
The real estate consultancy CBRE, in its second-quarter market review on RAK, said the emirate continued to demonstrate strong economic fundamentals during the April-June 2025 quarter, supported by a resilient fiscal framework, diversified growth drivers, and rising investor confidence.
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The RAK’s sovereign credit rating remains at A/A-1 by S&P Global and reaffirmed at A+ by Fitch, citing robust fiscal surpluses, low debt — 8% of gross domestic product (GDP), and a net asset position of 18% of GDP. S&P Global forecasts 4.2% annual GDP growth through 2027 as against 6.1% increase anticipated by RAK Government until 2026. The emirate’s real GDP growth stood firm at 6.7% last year compared to 3.6% in 2023.
The RAK economy is driven by non-oil factors with no single sector holding a dominate share as real estate, tourism, hospitality, manufacturing, mining and industry have been playing a major role in promoting the emirate as an ideal destination for investment. Wholesale and retail trade, along with manufacturing — which together constitute 50% of RAK’s exports — contribute approximately 45% to RAK’s real GDP, according to S&P Global.
“RAK’s diversified non-oil economy and ongoing infrastructure projects will continue to support its medium-term growth trajectory beyond 2026. GDP per capita also expected to rise to around $32,800 by 2028,” S&P remarked.
The projected 6.1% GDP growth is driven by key strategic initiatives, notably the development of the landmark $5.2 billion Wynn Al Marjan Island integrated resort. Set to open in March 2027, the resort is poised to drive further economic expansion. Upon completion, the resort, which has been granted the commercial gaming operator’s licence — the first of its kind in the UAE, will account for about 40% of GDP.
The rating agency Fitch also highlighted Ras Al Khaimah’s high GDP per capita, strong governance, political stability and effective rule of law — key factors that contribute to the Emirate’s attractive investment environment.
The emirate attracted Dh700 million FDI across six key projects in the first half of 2025 as well as launched a $127.1 million adhesives facility by H.B. Fuller (US) in Al Hamrah Industrial Zone, part of RAK Economic Zone (RAKEZ) — one of the region’s largest economic zones and a key industrial and business hub serving over 35,000 companies across 50-plus sectors.
The RAKEZ, which supports startups, SMEs, and industrial firms with licensing, infrastructure and regulatory services, recorded 43% year-on-year increase in new companies’ registration during the first half of 2025 as 8,506 new companies were registered during the January-June period this year. This builds on a record 13,000-plus new companies’ registration in 2024, bringing the total to more than 35,000.
Tourism and Hospitality
The emirate’s landmark tourism projects, including a major integrated resort, luxury hotels and world-class leisure facilities, combined with a surge in real estate revenue, are creating opportunities for investors, driving further investment and strengthening the Emirate’s economic resilience, according to Fitch.
As a result of condusive environment, tourism in Ras Al Khaimah continues to go from strength to strength with 36% growth in Meetings, Incentives, Conferences, and Exhibitions (MICE) and weddings revenues in the first half of 2025, 6% growth in visitor arrivals and 9% rise growth in tourism revenue.
Ras Al Khaimah Tourism Development Authority (RAKTDA), a government body responsible for licensing, regulating, and promoting the emirate’s tourism and hospitality sector, is marking a new record for the destination with over 654,000 visitor arrivals during the first half of 2025.
The RAKTDA, which plays a central role in positioning Ras Al Khaimah as a leading destination with initiatives supporting infrastructure development, international connectivity, and private sector partnerships, is taking every step to ensure that the emirate is on track to deliver long-term, sustainable value for its economy, communities and tourists.
Moreover, there are plans to launch approximately 20 new hotels in the next two to three years, leading to a projected 75% increase in hotel room capacity. Four Seasons, Fairmont, Taj, and NH Collection (Minor Hotels) — supporting plans to double the number of hotel keys by 2030.
“To alleviate the risk of overcapacity, authorities plan to target a broader market and diversify tourism offerings. With projected tourism hitting 3.5 million annual visitors by 2030 and infrastructure advancing rapidly, developers and investors alike agree that Ras Al Khaimah is no longer just a seasonal story,” says an analyst.
Stirling Hospitality Advisors, a leading boutique advisory firm in the region, recently published the sixth edition of RAK Investment Pulse report, which delivers new insight into the end-to-end investor journey for hotel development and operation, revealing that the Emirate offers one of the UAE’s fastest and most cost-efficient pathways to market entry.
Tatiana Veller, Managing Director of Stirling Hospitality Advisors, said Ras Al Khaimah has created an ecosystem where investors not only see strong tourism fundamentals, but also a clear, supportive path to market.
“This edition of RAK Investment Pulse captures how streamlined processes, competitive financing, and proactive government engagement are giving investors’ confidence to commit capital and build for the long term,” she said.
There is no second opinion that the hospitality sector in RAK is booming, with significant investments in projects that aim to elevate the emirate's profile as a tourist hotspot. “Notable developments include luxury beach resorts and adventure tourism facilities, such as zip-lining and eco-tourism experiences. These ventures not only contribute to increased tourist footfall but also stimulate job creation and provide a boost to the local economy,” says an expert.
