S&P Global affirms RAK’s ‘A/A-1’ credit rating with ‘stable’ outlook

International credit ratings agency S&P Global affirmed Ras Al Khaimah’s rating for 2026 at ‘A/A-1’ with a ‘stable’ outlook, anticipating broad economic stability in the Emirate over the next two to three years.

US-based S&P Global, one of the ‘Big Three’ credit-ratings agencies, stated that the Emirate’s stable outlook reflected the agency’s expectation that Ras Al Khaimah Government’s prudent fiscal management and fiscal buffers would provide space for policy maneuvering amid current developments.

The report highlighted “continuity in government policy”, ensured by the Emirate’s legislative and executive systems, as a key factor in the decision to affirm the rating, noting that some progress has been observed on the government’s long-term commitment to establishing strong economic institutions, such as the RAK Statistics Centre.

Ras Al Khaimah has maintained an ‘A range’ credit rating since 2008.

A spokesperson for Ras Al Khaimah Government said, “Affirming Ras Al Khaimah’s rating and stable outlook for 2026 reflects global confidence in our Emirate’s ability to navigate current developments, guided by the wise and forward-looking leadership of His Highness Sheikh Saud Bin Saqr Al Qasimi, Supreme Council Member and Ruler of Ras Al Khaimah. The Emirate, with its robust infrastructure, has thoroughly proven its resilience in challenging times.

Ras Al Khaimah continues to execute its plans to ensure its growth and prosperity.”

The international credit ratings agency forecasts that Ras Al Khaimah Government will maintain a conservative fiscal policy and run fiscal surpluses averaging 3 per cent of GDP over the 2026-2029 period.

The report underlines the Emirate’s capacity to adjust its expenditure as a factor in its ability to navigate uncertainty, citing the successful measures it had implemented during the COVID-19 pandemic as an example.

Furthermore, the government’s strong net asset position partly mitigates fiscal risks from contingent liabilities, predicting that the government’s interest burden will remain under 5 per cent of government revenue due to its small debt stock.

Ras Al Khaimah is home to a thriving and diversified economy with growth recorded and projected across all industries.

The Emirate’s GDP composition is split over a variety of sectors, boosting its ability to attract and retain talent and businesses, from SMEs to large international companies.

Meanwhile International credit ratings agency Standard & Poor’s (S&P) Global has upheld Ras Al Khaimah’s rating at “A/A-1” with a “stable” outlook, maintaining the same rating from the previous cycle.

US-based S&P Global, one of the Big Three credit-ratings agencies, stated that the Emirate’s stable outlook reflected the agency’s expectation that Ras Al Khaimah’s economic growth and fiscal position will remain strong over the forecast period.

The report cited the “ongoing tourism and infrastructure projects” across Ras Al Khaimah as a key factor that will support economic growth, while also forecasting that “strong performance in tourism, real estate, manufacturing and mining [will] support the growth trajectory”.

A spokesperson for Ras Al Khaimah Government said, “Guided by the vision of His Highness Sheikh Saud Bin Saqr Al Qasimi, Supreme Council Member and Ruler of Ras Al Khaimah, our Government has moved steadily forward with its ambitious yet solid plans to further enhance its resilient, diversified and vibrant economy, while remaining strategically prudent in its fiscal policy. “Maintaining the Emirate’s advanced rating and stable outlook embodies global confidence in our economic model, motivating us to keep growing and enhancing our reputation as the ideal place to live, work, visit and invest.”

The international credit ratings agency estimates Ras Al Khaimah’s economic growth will accelerate to just above 4 per cent by 2027‑2028, whereas GDP per capita is set to strengthen to about $32,600 by 2028.

The report projects that upcoming tourism projects and related infrastructure spending will help reinforce the Emirate’s mining sector, as well as its economic free zones, airport and real estate sector.

Meanwhile, the stable outlook reflects the agency’s confidence that Ras Al Khaimah’s economic growth and fiscal position will remain strong over the upcoming two-year period, with low debt levels and recurring fiscal surpluses underpinning its fiscal profile.

Ras Al Khaimah is home to a thriving and diversified economy.

The Emirate’s GDP composition is split over a variety of sectors, boosting its ability to attract and retain talent and businesses, from SMEs to large international companies.

WAM