S&P Global Affirms Ras Al Khaimah's 'A/A-1' Credit Rating With A 'Stable' Outlook For 2026

(MENAFN- Khaleej Times) International credit ratings agency S&P Global on Monday 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.

The agency said 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 manoeuvring amid geopolitical developments.

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S&P 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 Center. Ras Al Khaimah has maintained an ‘A range’ credit rating since 2008.

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 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.

Strategically located between East and West – with one third of the world’s population within four hours’ flying time – RAK is a gateway to the Middle East and beyond. Its economy is diverse, with no single sector accounting for more than 27 per cent of GDP. RAK offers a business-friendly environment with customizable services, competitive operating costs, 100 per cent foreign ownership, zero personal income tax and one of the world’s lowest corporate tax rates.

With world-class infrastructure, RAK is home to over 50,000 companies, including industry leaders such as RAK Ceramics and Julphar. RAKEZ and Innovation City support dynamic growth across industrial, manufacturing and digital sectors, backed by a future-focused economy validated by ‘A’-range credit ratings for 15+ years from Fitch and S&P.

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 geopolitical developments. 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.”

S&P expects the Ras Al Khaimah Government to 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.

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