Over the past four years, Ras al-Khaimah has unveiled ambitious plans to transform itself into a modern city, by developing sectors such as real estate, tourism, industry and education.

The rating will give it easier access to funds to develop further projects but, more importantly, it will allow it to underpin its existing plans with solid infrastructure.

Basic utilities such as power and water are a growing concern as the emirate plans to double its population with new residential communities, business clusters and industrial zones.

The concern is that as development accelerates, infrastructure will be left behind.

Realising that insufficient power supplies could pull the plug on development, Ras al-Khaimah has started building power plants and is in talks with the federal authorities to secure additional supplies.

The ratings give Ras al-Khaimah the ability to develop longer-term solutions.

With access to additional finance the emirate could consider going it alone with private sector partners and develop its own large-scale plants.