Fitch Affirms Ras Al Khaimah’s ‘A+’ Rating and Raises 2026 Growth Forecast
International credit ratings agency Fitch has reaffirmed the northern emirate's Long-Term Issuer Default Rating, projecting robust economic growth ahead despite regional uncertainties.
Ras Al Khaimah has received a vote of confidence from international credit ratings agency Fitch, which has affirmed the emirate’s Long-Term Issuer Default Rating at ‘A+’ and simultaneously removed it from Rating Watch Negative status. The decision reflects a marked improvement in regional conditions since April 2026 and underscores the emirate’s economic resilience.
The rating affirmation recognises that whilst geopolitical challenges continued to present headwinds, their impact proved manageable, resulting only in a modest delay and marginal cost increase for a potentially transformational investment initiative within the emirate. Fitch’s assessment emphasises that the ‘A+’ rating remains underpinned by several structural strengths, including notably low public-sector debt, substantial fiscal buffers, elevated GDP per capita and the substantial advantages afforded by membership within the UAE federation.
In a particularly positive development for the emirate’s economic outlook, Fitch has revised its growth forecast for 2026 substantially upward. The agency now projects GDP growth of 1.5 percent, a marked reversal from its previous prediction of contraction at 1.8 percent. This revision was informed by first-half 2026 economic data, which demonstrated greater-than-anticipated economic resilience, supported by robust domestic demand and enhanced intra-Gulf commercial activity.
Looking ahead, Fitch forecasts that this momentum will accelerate, with GDP growth expected to rebound to 5 percent during 2027. Consolidated public-sector debt is anticipated to remain stable at approximately 11 percent of GDP across the 2026–2028 forecast period, providing further reassurance regarding fiscal sustainability.
A spokesperson for Ras Al Khaimah Government commented that the emirate’s continued growth trajectory, navigated amid regional and global uncertainties, represents tangible evidence of economic strength and resilience. The official noted that this achievement reflects consistent strategic effort, observing that the emirate has demonstrated a systematic capacity to transform challenges into growth opportunities. The Fitch affirmation, coupled with the removal from Rating Watch Negative and the upwardly revised growth forecast, reinforces market confidence in the emirate’s economic management and prospects.
As the northernmost of the UAE’s seven emirates, Ras Al Khaimah maintains a diversified economy spanning multiple sectors. This sectoral diversity strengthens the emirate’s capacity to attract and retain talent whilst continuing to appeal to a broad spectrum of business interests, from small and medium enterprises through to major international corporations.
Source: WAM