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Ratings Upgraded: The upgrade of Ras Al Khaimah’s (RAK) Issuer Default Ratings (IDRs) reflects ���������ֳ�’ expectation of improved credit metrics driven by stronger medium-term growth forecasts, a record of resilience to external shocks and prospects of stronger fiscal revenue and higher buffers that will further sustain prudent fiscal management. The ratings are supported by the benefits of RAK’s membership in the United Arab Emirates (UAE; AA-/Stable), including the significant share of mandatory spending undertaken by the federal government. Favourable Medium-Term Growth: Growth is expected to be fuelled by major investment projects that will also contribute to further economic diversification. The construction of the Middle East’s first integrated resort on Al Marjan island, opening in 2027, is predicted to attract further investment and enhance economic resilience. Two other master plans, RAK Central and Beach District, announced in January 2024 also contribute to a robust medium-term growth forecast of 6.2% in 2024 and 5% in 2025. This compares favourably with our ‘A’ and ‘AA’ median forecasts of 2.9% and 2.4% in 2024 and 2.4% and 2.1% in 2025, respectively. Improving Revenue Forecasts: We expect the combination of investment projects and upcoming changes to tax legislation to support public revenue and help build additional fiscal buffers over the medium term. Large land sales will be driven by investments on Al Marjan island and beyond, RAK Central and Beach District. We forecast revenue to increase to 22.9% of GDP in 2024 and 21.8% in 2025 from 20% in 2022 and 21.5% in 2023.