S&P and Fitch assigned credit ratings to RAK

 Ras Al Khaimah, 28 January 2008 - The Emirate of Ras Al Khaimah (RAK) has been assigned sovereign credit ratings by two international credit rating agencies, namely Standard & Poor's (S&P) and Fitch Ratings (Fitch). S&P assigned RAK its long term foreign and local currency sovereign credit rating of 'A'. Fitch also assigned its 'A' foreign and local currency sovereign credit rating to RAK. The rating outlook of both S&P and Fitch is stable.

The rating exercise for RAK was led by the Investment and Development Office (IDO) of the Government of Ras Al Khaimah. Standard Chartered Bank (SCB), as the Ratings Advisor to the Government, has worked closely with IDO in the rating exercise.

"The strong credit ratings from S&P and Fitch are independent votes of confidence in the economic program and fiscal position of Ras Al Khaimah", commented Mr. Mohammed Sultan Al Qadi, CEO of IDO. "Among the crucial credit strengths that RAK possesses are its stable political environment, robust economic fundamentals, healthy external finance, significant fiscal discipline and flexibility, competitive key industries and strong public sector."

"The economy of Ras Al Khaimah has registered impressive growth over the last 5 years, underpinned by sound financial policies, structural reforms and government-led investments. RAK has posted a cumulative average growth rate (CAGR) of over 50% in operational surpluses since Sheikh Saud Bin Saqr Al Qasimi, Crown Prince and Deputy Ruler of Ras Al Khaimah, ascended the reign of the Emirate in 2003,"

"We would also like to extend our appreciation to Standard Chartered Bank for its assistance and commitment during the ratings exercise. They have proven to be a valuable asset and we look forward to a long standing relationship." added Mr. Al Qadi.

Ras Al Khaimah has witnessed unprecedented growth over the last five years, with social development growing in tandem with the economic gains made during the period. RAK is guided by a two-pronged strategy of making prudent investments in socio-development projects along with promoting and diversifying its strong existing economic base. RAK has been adequately providing quality public services and financing developmental expenditure through equitable collections and prudent expenditures so as to achieve long term sustainable fiscal flexibility. Policy and institutional frameworks are being strengthened, while coordination between the federal government and individual emirates has improved.

RAK is known internationally for being home to globally competitive manufacturing industries like ceramics, cement and aggregate, among a few others. These industries are expected to grow and gain from strength to strength in the future. As part of the strategy of a diversified economy, RAK has also incorporated tourism and real-estate as key drivers of the economy in the future, capitalizing on its enormous potential to become one of the more attractive destinations in the region. In addition to industrial projects, several large-scale residential, commercial and tourism development projects are currently underway and due to be completed between 2010 and 2015. The Government of Ras Al Khaimah has plans to take further steps in the coming years to improve the economy's dynamism and resilience.



Note to Editors
The Investment and Development Office, Government of Ras Al Khaimah (IDO) was established in 2004 by an Emiri Decree with the aim of identifying new investment opportunities and to facilitate the investment process to allow investors in reaching their goals for their businesses in Ras Al Khaimah. IDO showcases the unique features of Ras Al Khaimah to the prospective investor and ensures that a viable business venture is set up without hindrances.

IDO has translated the objectives of RAK government into a strategy, which focuses on issues like reforms of laws and regulations, infrastructure improvements, incentive programs for investments, training and development of human resources, and marketing of Ras Al Khaimah.

IDO acts as an economic ambassador and facilitator of ideas that will differentiate Ras Al Khaimah from other Emirates and enhance its investment climate. This involves developing marketing messages about the emirate and conducting inbound and outbound investment missions. IDO also identifies and disseminates investment opportunities and provides direct investments and/or participations when and if required.

The Investment and Development Office provides necessary information and data to investors and publish the relevant indicators to assist investors in their ventures. In addition, IDO promotes and helps conduct training and skill development programs for senior government officials and facilitates the government in all possible ways to improve the investment environment in Ras Al Khaimah.

For further information on the above sovereign credit ratings, please contact:
Mr. Khurram Sayeed, CFO of IDO , at +9717 22 77 888 or khurram@rakinvest.ae. Alternatively, please contact the above-mentioned credit rating agencies.