Ratings agency S&P said Ras Al Khaimah will post larger fiscal surpluses and lower government debt servicing ratios than previously assessed on the back of revenue sources from state-owned enterprises that are becoming much like general government departments.
The agency revised its outlook to stable from negative on the emirate to reflect expectations that the government's fiscal position will remain strong, supported by additional streams of revenue. It affirmed its long and short-term foreign and local currency sovereign credit ratings at A/A-1.
RAK's helathy fiscal position, low level of government debt, and the advantages that it derives from its membership in the UAE, including low external risks and the agency's belief that the UAE would provide extraordinary support to RAK, if needed, all support its outlook, S&P said.
"We expect that revenue sources from state-owned enterprises [SOEs] that are becoming akin to general government departments, will help Ras Al Khaimah post larger fiscal surpluses and lower government debt servicing ratios than previously assessed," S&P said.
The government's debt burden decreased in October with a sukuk redemption and it has also begun a process of merging some SOE activities into the general government, as such activities are more closely aligned with government services.
"We understand this process is ongoing and we expect revenues will increase as the government makes more institutional changes," the agency said.
The UAE Federal Government covers a large portion of expenditure that would otherwise fall to RAK. These costs include public health care, education, energy provision and defence. Major infrastructure and social projects - such as the development of schools, hospitals, truck roads and the provision of adequate energy generation and distribution - are also borne at the federal level. As a result, RAK's expenditure base as a percentage of GDP remains low, averaging just under 8 per cent of GDP over the forecast period, S&P said.
"We continue to view RAK's debt burden as limited. Gross debt has been declining in absolute terms since 2013. We estimated debt at 11 per cent of GDP at year-end 2018, with a maturing sukuk redeemed in October. Debt will continue on a downward trend," the agency said.
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Read more:
Ras Al Khaimah set to add 20 per cent renewables to energy mix
RAK Gas signs production sharing agreement with Zanzibar
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The matured sukuk also contributed to a fall in the interest burden, which S&P estimated at 5.1 per cent of revenues in 2018.
"We expect the government will remain in a net asset position of about 4.5 per cent of GDP and real GDP growth of 2.5 per cent in 2018, continuing through 2010 and supported by increased capital expenditure in Dubai and Abu Dhabi.
Also yesterday, S&P said the Bahrain government will use the window of opportunity provided by pledged financial support from other GCC states to accelerate the pace of fiscal consolidation against external risks, S&P Ratings said, as the agency affirmed its B+/B rating on long and short-term foreign and local currency sovereign credit for the nation.
The agency said the outlook remains "stable". It expects real economic growth to average 2.5 per cent over 2018-2021.
In October, The National reported that the UAE, Saudi Arabia and Kuwait pledged $10 billion in financial support for Bahrain's reforms package that aims to eliminate the kingdom's budget deficit by 2022. Bahrain's Fiscal Balance Programme, drawn up after a thorough review of government spending, aims to achieve annual savings of 800 million Bahraini dinars (Dh7.8bn). It builds on previous fiscal consolidation efforts that yielded annual savings of 854m dinars during 2015-2017, the Bahrain News Agency said at time.
"We expect the government's budget balance to remain in deficit over our forecast period, due to our view that some of the government's budgetary consolidation measures might be less effective than planned," S&P said. "Nevertheless, we expect the vast majority of financial support to be disbursed because of Bahrain's importance to donor countries."
Bahrain plans to balance its budget by 2022 with measures focusing on increasing revenue capture from the non-oil sector of the economy. Currently, fiscal revenues are heavily oil-dependent, despite the oil sector contributing less than 20 per cent to GDP, according to S&P.
Other acts on the Jazz Garden bill
Sharrie Williams
The American singer is hugely respected in blues circles due to her passionate vocals and songwriting. Born and raised in Michigan, Williams began recording and touring as a teenage gospel singer. Her career took off with the blues band The Wiseguys. Such was the acclaim of their live shows that they toured throughout Europe and in Africa. As a solo artist, Williams has also collaborated with the likes of the late Dizzy Gillespie, Van Morrison and Mavis Staples.
Lin Rountree
An accomplished smooth jazz artist who blends his chilled approach with R‘n’B. Trained at the Duke Ellington School of the Arts in Washington, DC, Rountree formed his own band in 2004. He has also recorded with the likes of Kem, Dwele and Conya Doss. He comes to Dubai on the back of his new single Pass The Groove, from his forthcoming 2018 album Stronger Still, which may follow his five previous solo albums in cracking the top 10 of the US jazz charts.
Anita Williams
Dubai-based singer Anita Williams will open the night with a set of covers and swing, jazz and blues standards that made her an in-demand singer across the emirate. The Irish singer has been performing in Dubai since 2008 at venues such as MusicHall and Voda Bar. Her Jazz Garden appearance is career highlight as she will use the event to perform the original song Big Blue Eyes, the single from her debut solo album, due for release soon.
More coverage from the Future Forum
SPECS
Engine: 1.5-litre turbo
Power: 181hp
Torque: 230Nm
Transmission: 6-speed automatic
Starting price: Dh79,000
On sale: Now
Kill
Director: Nikhil Nagesh Bhat
Starring: Lakshya, Tanya Maniktala, Ashish Vidyarthi, Harsh Chhaya, Raghav Juyal
Rating: 4.5/5
The Woman King
Director: Gina Prince-Bythewood
Stars: Viola Davis, Thuso Mbedu, Sheila Atim, Lashana Lynch, John Boyega
Rating: 3/5
Results
5.30pm: Maiden (TB) Dh82,500 (Turf) 1,400m; Winner: Mcmanaman, Sam Hitchcock (jockey), Doug Watson (trainer)
6.05pm: Handicap (TB) Dh87,500 (T) 1,400m; Winner: Bawaasil, Sam Hitchcott, Doug Watson
6.40pm: Handicap (TB) Dh105,000 (Dirt) 1,400m; Winner: Bochart, Fabrice Veron, Satish Seemar
7.15pm: Handicap (TB) Dh105,000 (T) 1,200m; Winner: Mutaraffa, Antonio Fresu, Musabah Al Muhairi
7.50pm: Longines Stakes – Conditions (TB) Dh120,00 (D) 1,900m; Winner: Rare Ninja, Royston Ffrench, Salem bin Ghadayer
8.25pm: Zabeel Trophy – Rated Conditions (TB) Dh120,000 (T) 1,600m; Winner: Alfareeq, Antonio Fresu, Musabah Al Muhairi
9pm: Handicap (TB) Dh105,000 (T) 2,410m; Winner: Good Tidings, Antonio Fresu, Musabah Al Muhairi
9.35pm: Handicap (TB) Dh92,500 (T) 2,000m; Winner: Zorion, Abdul Aziz Al Balushi, Helal Al Alawi
WHAT ARE NFTs?
Non-fungible tokens (NFTs) are tokens that represent ownership of unique items. They allow the tokenisation of things such as art, collectibles and even real estate.
An NFT can have only one official owner at one time. And since they're minted and secured on the Ethereum blockchain, no one can modify the record of ownership, not even copy-paste it into a new one.
This means NFTs are not interchangeable and cannot be exchanged with other items. In contrast, fungible items, such as fiat currencies, can be exchanged because their value defines them rather than their unique properties.
What you as a drone operator need to know
A permit and licence is required to fly a drone legally in Dubai.
Sanad Academy is the United Arab Emirate’s first RPA (Remotely Piloted Aircraft) training and certification specialists endorsed by the Dubai Civil Aviation authority.
It is responsible to train, test and certify drone operators and drones in UAE with DCAA Endorsement.
“We are teaching people how to fly in accordance with the laws of the UAE,” said Ahmad Al Hamadi, a trainer at Sanad.
“We can show how the aircraft work and how they are operated. They are relatively easy to use, but they need responsible pilots.
“Pilots have to be mature. They are given a map of where they can and can’t fly in the UAE and we make these points clear in the lectures we give.
“You cannot fly a drone without registration under any circumstances.”
Larger drones are harder to fly, and have a different response to location control. There are no brakes in the air, so the larger drones have more power.
The Sanad Academy has a designated area to fly off the Al Ain Road near Skydive Dubai to show pilots how to fly responsibly.
“As UAS technology becomes mainstream, it is important to build wider awareness on how to integrate it into commerce and our personal lives,” said Major General Abdulla Khalifa Al Marri, Commander-in-Chief, Dubai Police.
“Operators must undergo proper training and certification to ensure safety and compliance.
“Dubai’s airspace will undoubtedly experience increased traffic as UAS innovations become commonplace, the Forum allows commercial users to learn of best practice applications to implement UAS safely and legally, while benefitting a whole range of industries.”
MATCH INFO
Manchester United 1 (Fernandes pen 2') Tottenham Hotspur 6 (Ndombele 4', Son 7' & 37' Kane (30' & pen 79, Aurier 51')
Man of the match Son Heung-min (Tottenham)
COMPANY PROFILE
Name: Haltia.ai
Started: 2023
Co-founders: Arto Bendiken and Talal Thabet
Based: Dubai, UAE
Industry: AI
Number of employees: 41
Funding: About $1.7 million
Investors: Self, family and friends
Brief scores:
Huesca 0
Real Madrid 1
Bale 8'
ANATOMY OF A FALL
Director: Justine Triet
Starring: Sandra Huller, Swann Arlaud, Milo Machado-Graner
Rating: 5/5
ARM IPO DETAILS
Share price: Undisclosed
Target raise: $8 billion to $10 billion
Projected valuation: $60 billion to $70 billion (Source: Bloomberg)
Lead underwriters: Barclays, Goldman Sachs Group, JPMorgan Chase and Mizuho Financial Group
At a glance - Zayed Sustainability Prize 2020
Launched: 2008
Categories: Health, energy, water, food, global high schools
Prize: Dh2.2 million (Dh360,000 for global high schools category)
Winners’ announcement: Monday, January 13
Impact in numbers
335 million people positively impacted by projects
430,000 jobs created
10 million people given access to clean and affordable drinking water
50 million homes powered by renewable energy
6.5 billion litres of water saved
26 million school children given solar lighting
More from Neighbourhood Watch:
THE SPECS
Engine: 3-litre V6
Transmission: eight-speed automatic
Power: 424hp
Torque: 580 Nm
Price: From Dh399,000
On sale: Now
COMPANY PROFILE
Company name: Revibe
Started: 2022
Founders: Hamza Iraqui and Abdessamad Ben Zakour
Based: UAE
Industry: Refurbished electronics
Funds raised so far: $10m
Investors: Flat6Labs, Resonance and various others