RAK's Economy Booms with $700M FDI and 6.7% Growth
Ras Al Khaimah (RAK), the most northerly of the United Arab Emirates, is experiencing remarkable economic growth and diversification. The emirate attracted Dh700 million in foreign direct investment (FDI) across six key projects in the first half of 2025, building on a 6.7% real GDP growth in 2024.
RAK's economic expansion is driven by strategic priorities such as world-class infrastructure, quality lifestyle, and industrial growth. This is evident in the upcoming $5.2 billion Wynn Al Marjan Island integrated resort, projected to contribute about 40% of RAK's GDP upon completion in March 2027. Additionally, H.B. Fuller will open an adhesive manufacturing plant in RAK's Al Hamrah Industrial Zone, further boosting the emirate's economy.
RAK's tourism sector has also flourished, with a 36% increase in MICE and weddings revenues, a 6% growth in visitor arrivals, and a 9% rise in tourism revenue in the first half of 2025. RAKEZ, a key industrial and business hub, recorded a 43% year-on-year increase in new companies' registration during the same period, reflecting the emirate's growing appeal for businesses.
RAK's economic fundamentals remain robust, with a diversified economy driven by non-oil sectors, a strong fiscal framework, and rising investor confidence. The emirate's low debt (8% of GDP) and net asset position (18% of GDP) further bolster its sovereign credit rating. As RAK continues to attract international capital and FDI, it solidifies its position as a globally connected business gateway.
