Ras Al Khaimah retains A/A-1 rating with stable outlook

Dubai: Ras Al Khaimah has maintained its A/A-1 credit rating from S&P Global, with the agency projecting a stable outlook. The rating reflects S&P's confidence in the emirate's prudent fiscal and economic policies, as well as its substantial net asset position. S&P expects the government to continue with its existing fiscal management approach while preserving a robust financial position.

The stable outlook is based on the agency's belief that Ras Al Khaimah Government will maintain strong revenue performance, a substantial liquid asset position, and continued revenue growth. The government's net asset position will also provide a buffer against potential fiscal pressures. Over the next three years, S&P anticipates positive fiscal performance for the Emirate, driven by the combination of revenue growth, liquid assets, and the government's net asset position.

Additionally, Ras Al Khaimah's economic base, which spans a variety of industries, attracts both small and large enterprises. S&P also noted progress in the emirate's efforts to strengthen economic institutions, including the development of the RAK Statistics Center. The financial and economic flexibility of the wider UAE further enhances Ras Al Khaimah's ability to withstand regional challenges.