Ras Al Khaimah Retains 'A/A-1' Credit Rating From S&P Global With Stable Economic Outlook

Standard & Poor’s (S&P) Global has reaffirmed Ras Al Khaimah's credit rating at "A/A-1" with a "stable" outlook. This decision reflects the agency's belief that the Emirate's economic growth and fiscal health will remain robust in the coming years. The rating remains unchanged from the previous assessment, highlighting consistent confidence in Ras Al Khaimah's economic strategies.

The stable outlook is attributed to ongoing tourism and infrastructure projects, which are expected to bolster economic growth. S&P Global anticipates strong performance in sectors such as tourism, real estate, manufacturing, and mining will continue to drive this upward trajectory. These sectors are pivotal in supporting the Emirate's economic expansion.

S&P Global forecasts that Ras Al Khaimah’s economy will grow by over 4 percent by 2027-2028. Additionally, GDP per capita is projected to rise to approximately US$32,600 by 2028. This growth is supported by strategic investments in tourism projects and infrastructure development, which are expected to enhance various sectors including mining and real estate.

The Emirate's diversified economy plays a crucial role in attracting talent and businesses of all sizes. Its GDP is spread across multiple sectors, providing a stable foundation for continued economic resilience. This diversity helps maintain a competitive edge in attracting both small enterprises and large international companies.

A spokesperson for the Ras Al Khaimah Government stated, "Guided by the vision of H.H. 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."

The spokesperson added that maintaining an advanced rating and stable outlook signifies global confidence in their economic model. This motivates continued efforts to grow and enhance Ras Al Khaimah’s reputation as an ideal place for living, working, visiting, and investing.

Fiscal Strengths

The report highlights that low debt levels and recurring fiscal surpluses underpin Ras Al Khaimah’s strong fiscal profile. The stable outlook reflects confidence that these factors will support the Emirate’s economic growth over the next two years. Such financial stability is crucial for sustaining long-term development goals.

Ras Al Khaimah continues to thrive with a diverse economy that includes thriving free zones and an expanding airport sector. These elements contribute significantly to its ability to attract investment and foster business growth across various industries.

This comprehensive approach ensures that Ras Al Khaimah remains a competitive player on the global stage while maintaining fiscal discipline and strategic foresight.

With inputs from WAM