Fitch affirms Ras Al Khaimah’s ‘A+’ rating, raises 2026 growth forecast

International credit ratings agency Fitch has affirmed Ras Al Khaimah’s Long-Term Issuer Default Ratings (IDRs) at ‘A+’, reflecting an easing of direct risks associated with geopolitical challenges since April 2026, whose impact was limited to a modest delay and a marginal increase in the cost of launching a potentially transformational investment project in the Emirate.

The international credit ratings agency explained that the ‘A+’ rating, despite the impact of uncertain regional conditions, is supported by low public-sector debt, substantial fiscal buffers, high GDP per capita and the benefits of UAE federation membership.

Fitch revised the Emirate’s 2026 GDP forecast upward, projecting growth of 1.5 percent, compared with its previous report, which had predicted a contraction of 1.8 percent.

The revision was based on data from the first half of 2026, which indicated greater resilience, supported by solid domestic demand and stronger intra-Gulf activity.

Fitch also forecast GDP growth to rebound to 5 percent in 2027, while consolidated public-sector debt is expected to remain broadly stable at about 11 percent of GDP over the 2026-2028 period.

A spokesperson for Ras Al Khaimah Government said the Emirate’s continued trajectory of growth, despite regional and global challenges, reflects the resilience and strength of the economy, noting that this achievement is no coincidence.

The spokesperson added that the Emirate has consistently demonstrated remarkable resilience, turning challenges into opportunities for continued growth, reinforcing confidence in its economy, as evidenced by Fitch’s reaffirmation of its ‘A+’ rating, removal from ‘Rating Watch Negative’ and upward revision of its growth forecast for 2026.

Ras Al Khaimah, the northernmost of the UAE’s seven Emirates, is home to a thriving and diversified economy, with growth recorded and projected across various sectors. The Emirate’s GDP composition is split across a variety of sectors, boosting its ability to attract and retain talent and businesses, from SMEs to large international companies.

WAM