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Thailand’s plans to climb the ladder toward becoming a high-economy country were put on hold by disastrous floods in late 2011. Real GDP contracted 9% and losses were estimated at $44.7bn, but recovery, particularly for the hard-hit industrial estates, has been relatively swift. The focus is now on mitigating Thailand’s dependence on low-cost manufacturing exports for growth, which is risky given the uncertain world economy. Policymakers are hoping that new investment incentives will help it move up the manufacturing value chain, although economists fear that a new minimum wage might drive manufacturers away before this transformation can take place. This section includes interviews with Kittiratt Na-Ranong, Deputy Prime Minister and Minister of Finance; Boonsong Teriyapirom, Minister of Commerce; Atchaka Sibunruang, Secretary-General, Thailand Board of Investment (BOI); Minoru Furusawa, President, Japanese Chamber of Commerce (JCC), Bangkok; and Joe Hinrichs, President of Asia Pacific and Africa Region, Ford Motor Company.

Though one of the smaller emirates in the UAE, RAK is developing as a tourism destination. The emirate received 835,200 tourists in 2011, a significant increase over the previous year, which saw 600,000 visitors. There are hopes that these figures will continue to rise to reach 1.2m by 2013. To facilitate this, RAK International Airport is currently being expanded at a cost of $27m. New runways are being built and passenger and cargo terminals are being extended. The RAK Tourism Development Authority (RAK TDA) has also set a target to add 10,000 hotel rooms by 2016. Going forward, the emirate is looking to capitalise on cruise tourism by creating tailor-made excursions for cruise arrivals, who are expected to exceed 20,000 in the 2012-13 season. This chapter includes an interview with Victor Louis, COO of Ras Al Khaimah Tourism Development Authority and CEO of Ras Al Khaimah Hospitality Group.

As demand for medical treatment rises, the health care sector in RAK has to meet new demands and challenges. Population growth, which climbed to 8% between 2008 and 2010, has necessitated more health care investment and infrastructure upgrades. Indeed, health sector costs in the UAE have tripled in the past decade and, as RAK’s citizens have free access to medical care at public institutions, the government is paying for the bulk of this rise. Yet RAK is meeting these challenges, opening two new hospitals and implementing a number of health care facility upgrades. Moreover, RAK is positioning itself as a medical tourism centre. Hospitality and good care with low prices are key components. For example, a nationwide mandatory insurance programme is expected to take effect, redistributing health-related costs between the government and citizens. Steps are also being taken to increase the number of Emirati students studying medicine and nursing to reduce the labour shortage, and awareness campaigns are promoting the long-term benefits of a healthy lifestyle.

As the government of RAK makes the necessary changes to drive growth forward and transition to a knowledge-based economy, one thing is clear: education and educational reform are of prime importance. One important measure will be the establishment of a council by RAK’s ruler, Sheikh Saud bin Saqr Al Qasimi, which will regulate and monitor institutions of higher education in the emirate. Furthermore, several programmes have been introduced to improve the quality of teaching, including a teacher exchange that allows educators to observe different pedagogical methods. More specifically, the government plans to address three key issues in the higher education system: low English-language proficiency; students opting for careers in the public sector rather than the private; and overall quality standards. Given the correlation between education and a strong economy, the government’s and other actors’ reforms should have a strong impact on growth in the emirate in the long run. This chapter includes an interview with Sheikh Nahyan bin Mubarak Al Nayhan, Minister of Higher Education and Scientific Research.

Ras Al Khaimah’s lack of oil and gas resources – relative to other emirates – has encouraged growth in non-hydrocarbons sectors. The most significant of these is industry, which now accounts for around 30% of GDP. However, this high rate of industrial development means that demand for electricity has soared in recent years, becoming the single biggest constraint on expansion in RAK. The government has therefore made power supply a priority in recent years, investing in improvements in generating capacity. Both the federal authorities and the emirate are investing to ensure energy supply in RAK. For example, research is under way in RAK towards developing a smart grid, one that responds to peaks and troughs in demand and compensates accordingly, making the system as a whole more resilient. Furthermore, investments in renewable energy sources – particularly solar and wind – could go a long way toward reducing energy prices and fuelling long-term industrial development. Given the high levels of solar irradiance RAK receives, solar energy is a niche area being explored and has much potential.