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Fitch Ratings affirmed Ras Al Khaimah’s Long-Term Issuer Default Ratings at A+ and removed the emirate from Rating Watch Negative in an assessment released on October 4. The move reflects an easing of direct risks associated with geopolitical challenges since April whose effects were confined to a modest delay and marginal cost increase for a major investment project. Fitch explained that the rating holds despite ongoing regional uncertainty due to underlying credit strengths. The agency had placed the rating on watch earlier in the year amid heightened tensions.
Fitch raised its forecast for Ras Al Khaimah’s 2026 GDP growth to 1.5 percent from a prior projection of a 1.8 percent contraction according to the updated assessment. First-half 2026 data revealed stronger resilience driven by robust domestic demand and increased intra-Gulf economic activity the ratings agency reported. This revision highlights the emirate’s capacity to navigate external pressures better than anticipated in spring projections. The adjustment aligns with observed performance across key sectors.
GDP expansion is expected to rebound to 5 percent in 2027 while consolidated public-sector debt remains broadly stable at around 11 percent of GDP from 2026 through 2028 Fitch forecast. These projections incorporate the improved first-half performance and assume continued policy prudence. Debt levels are viewed as sustainable given the emirate’s fiscal position. The outlook supports the affirmed rating level.
The A+ rating draws support from low public-sector debt substantial fiscal buffers high GDP per capita and benefits from UAE federation membership a Fitch assessment found. Certain constraints including the emirate’s small economic scale and aspects of its policy framework continue to factor into the analysis. Federation membership provides critical safeguards that offset those limitations over time. Fitch emphasized these elements as central to its credit evaluation.
A spokesperson for the Ras Al Khaimah Government said the emirate’s growth trajectory amid regional and global challenges demonstrates economic resilience and strength. “It is precisely this consistent strength, stability and strategic foresight that instill deep confidence in our economy, as evidenced by Fitch’s reaffirmation of our ‘A+’ rating, removal from ‘Rating Watch Negative’ and upward revision of our growth for 2026,” the spokesperson added. The representative noted that the emirate has turned difficulties into opportunities for ongoing expansion. The comments followed directly from the Fitch announcement.
Fitch had maintained the rating on Rating Watch Negative in May 2026 citing prolonged regional conflict risks that could disrupt tourism and foreign investment according to its earlier commentary. That report projected a sharper 2026 contraction before a stronger 2027 recovery under more adverse assumptions. The October update reflects reduced immediate threats and better-than-expected outcomes. International Monetary Fund data project UAE-wide growth at 5.0 percent in 2026 supported by non-hydrocarbon sectors such as tourism and construction that also underpin Ras Al Khaimah’s diversification.
