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

Ras Al Khaimah has maintained its A/A-1 sovereign credit rating with a stable outlook through 2026, according to S&P Global. The credit agency credits the emirate's prudent fiscal management, strong buffers and overall economic stability for retaining the rating. S&P noted that Ras Al Khaimah's fiscal position should remain resilient even in the face of geopolitical uncertainty, thanks to conservative budgeting, low debt levels and the government's ability to adjust spending as needed.

The agency projects average fiscal surpluses of around 3% of Gross Domestic Product between 2026 and 2029. This rating covers both long- and short-term sovereign credit ratings in both foreign and local currencies. S&P also reaffirmed its AA+ transfer and convertibility assessment, indicating a high level of confidence in the emirate's ability to meet external obligations under normal circumstances.

Factors contributing to the positive assessment include continuity in government policy, progress in strengthening economic institutions like the RAK Statistics Centre, and legislative and executive arrangements that have helped maintain policy consistency. The government's fiscal buffers provide flexibility if external conditions worsen.

Ras Al Khaimah's economy expanded by approximately 4.3% in 2025, with growth expected to moderate to about 2.2% in 2026 and 2027 before picking up to around 3.5% in 2028 and 2029. Tourism and infrastructure investments are projected to drive this growth. Nominal GDP is estimated to reach around Dh49.4 billion in 2025, with further increases to Dh50.8 billion in 2026 and Dh52.5 billion in 2027. Per capita GDP is projected to be about $32,300 in 2025.

Tourism development remains a key driver of medium-term growth, with major projects like the Wynn Al Marjan Island resort set to open in early 2027. Ras Al Khaimah's strong net asset position helps offset risks from contingent liabilities, and interest costs on the government's debt are expected to remain below 5% of revenue due to the relatively small debt stock.

A Ras Al Khaimah government spokesperson said the rating reflects confidence in the emirate's ability to navigate external developments while pursuing its growth plans. Infrastructure investment and the government's commitment to maintaining a diversified economy and prudent fiscal policy were cited as supporting factors. The latest assessment follows S&P's November 2025 review, which also maintained the A/A-1 rating and stable outlook.