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Fitch Ratings affirmed the Emirate of Ras Al Khaimah’s A+ long-term issuer default rating with a stable outlook in an assessment released this week that also revised the emirate’s growth trajectory upward. The agency cited stronger-than-expected domestic demand and economic activity in the first half of 2026 as reasons for lifting the real GDP growth forecast for the full year to 1.5 percent from an earlier estimate of a 1.8 percent contraction. Ras Al Khaimah forms one of the seven emirates of the UAE which holds an AA- rating from the same agency with a stable outlook according to Fitch data.
The Fitch report placed government deposits at 18 percent of GDP while putting debt at 11 percent providing a substantial fiscal buffer that has supported the rating decision. The emirate has recorded no debt restructuring over the past 20 years a track record that Fitch Ratings highlighted as evidence of prudent management. A return to fiscal surplus is now projected for 2027 following an expected balance in 2026 as revenues from tourism manufacturing and real estate continue to expand.
Growth is forecast to accelerate to 5 percent in 2027 according to the Fitch Ratings projection as major infrastructure projects including tourism developments reach completion. The Wynn Al Marjan Island resort scheduled to open in the coming years is expected to drive visitor numbers higher with the Ras Al Khaimah Tourism Development Authority having reported steady increases in arrivals and revenues in recent periods. Such projects align with the emirate’s long-term diversification strategy that has reduced reliance on hydrocarbons.
Ras Al Khaimah Statistics Centre preliminary figures show the economy expanded by 5.57 percent at constant prices in 2024 with manufacturing wholesale trade and real estate activities contributing the largest shares to output. Manufacturing construction trade and real estate together account for around 60 percent of real GDP according to assessments that match the Fitch outlook. The Department of Economic Development reported a 31.5 percent rise in new business licences issued during 2025 bringing the total of active licences to 21938 by year end.
S&P Global Ratings affirmed its own A/A-1 rating with stable outlook for Ras Al Khaimah in September 2026 while projecting fiscal surpluses averaging 3 percent of GDP through 2029 according to the agency’s separate analysis. That assessment estimated 4.3 percent real GDP growth for 2025 before a moderation in 2026 due to regional uncertainties with a rebound anticipated from 2028 onward on the back of tourism and infrastructure investment. Both agencies pointed to the UAE federation’s capacity to extend extraordinary support if required as an additional credit positive.
A government spokesperson described the Fitch decision as validation of Ras Al Khaimah’s economic model and ongoing reforms in governance data collection and macro-fiscal planning. The official noted that these improvements have enhanced policymaking efficiency and reinforced investor confidence across key sectors. The emirate continues to target sustained expansion through 2030 with a focus on attracting foreign direct investment in logistics and hospitality.
