S&P affirms Ras Al Khaimah rating at 'A/A-1' with stable outlook

S&P Global Ratings has affirmed Ras Al Khaimah's long and short-term sovereign credit ratings at 'A/A-1', with a stable outlook, citing the emirate's strong net asset position, revenue growth prospects and prudent fiscal policies.

What is Ras Al Khaimah's S&P credit rating?

Ras Al Khaimah holds an 'A/A-1' sovereign credit rating from S&P Global Ratings, with a stable outlook. The agency expects the emirate's government to maintain its commitment to prudent fiscal and economic management while preserving its substantial net asset position, which underpins the stable outlook.

S&P also expects the emirate's fiscal position to benefit from strong revenue performance, with growth projected to strengthen over the 2028 to 2029 period.

Why did S&P affirm Ras Al Khaimah's stable outlook?

S&P highlighted Ras Al Khaimah's efforts to strengthen its economic institutions, including the establishment of the RAK Statistics Centre. It said the financial and economic flexibility of the United Arab Emirates provides a buffer against the impact of regional developments.

The government's net asset position is also expected to provide some protection against potential fiscal pressures. Its strong liquid asset position supports public finances alongside continued revenue growth.

How is Ras Al Khaimah diversifying its economy?

The rating affirmation comes as Ras Al Khaimah seeks to maintain economic growth across a diversified range of sectors. The emirate's economy spans multiple industries, supporting its efforts to attract and retain workers and businesses ranging from small and medium-sized enterprises to large international companies.

A Ras Al Khaimah government spokesperson said the emirate had demonstrated its ability to navigate challenges while maintaining its growth and development prospects under the leadership of Sheikh Saud bin Saqr Al Qasimi, a member of the UAE's Supreme Council and ruler of Ras Al Khaimah. The spokesperson said the latest rating affirmation and stable outlook reflected growing confidence in the emirate's economy and its fiscal prospects over the coming three years.