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S&P Global Ratings affirmed the emirate’s long-term and short-term foreign and local currency sovereign credit ratings at A and A-1 respectively while keeping the stable outlook, according to the agency’s latest assessment. The ratings agency also maintained its transfer and convertibility assessment at AA-plus. S&P Global Ratings expects Ras Al Khaimah to continue posting fiscal surpluses that average 3 percent of gross domestic product from 2026 through 2029, supported by robust revenue collection.
The September report from S&P Global Ratings detailed that the government recorded revenue of 7.8 billion dirhams in 2025, well above the budgeted 6.2 billion dirhams. This performance underscores the strength of the fiscal position even as economic growth is projected to moderate in 2026 due to heightened regional uncertainty. The agency projected real GDP expansion of 4.3 percent for 2025 before the slowdown.
Tourism and infrastructure investments are anticipated to drive a rebound with growth reaching 3.5 percent in 2028 and 2029, S&P Global Ratings reported. The emirate’s economy has benefited from ongoing projects in these sectors that have expanded capacity and attracted visitors. Low government debt levels further bolster the fiscal outlook according to the ratings assessment.
The stable outlook reflects S&P Global Ratings’ view that prudent fiscal management and substantial net financial assets will allow the government sufficient flexibility to handle potential adverse developments. The agency’s analysis places the net general government asset position at an average of 23 percent of GDP over the forecast period. S&P Global Ratings noted that the UAE federal structure provides additional support through potential extraordinary financial assistance if required.
Ras Al Khaimah has held ratings in the A category since 2008, a track record that multiple S&P Global Ratings reviews have highlighted as evidence of policy continuity and institutional development. The establishment of entities such as the Ras Al Khaimah Statistics Center has contributed to better economic data and governance, according to the latest report. Government policy continuity remains a cornerstone of the rating rationale.
A spokesperson for the Ras Al Khaimah Government stated that the affirmation reflects global confidence in the emirate’s economic model and leadership. “Time and time again, the Emirate of Ras Al Khaimah has proven its ability to navigate challenges and maintain its prospects for growth and development, guided by the wise and forward-looking leadership of His Highness Sheikh Saud bin Saqr Al Qasimi, Supreme Council Member and Ruler of Ras Al Khaimah,” the spokesperson said. The statement added that the decision anticipates positive fiscal performance over the coming three years.
