Standard & Poor's affirms Ras Al Khaimah's credit rating at 'A/A-1' with a stable outlook
Ras Al Khaimah, March 16 (WAM): Standard & Poor's (S&P) has affirmed Ras Al Khaimah's sovereign credit rating at A/A-1 with a "stable" outlook, while the agency expects broad-based economic stability in the emirate over the next two to three years.
The US agency, one of the world's three largest credit rating agencies, said the emirate's stable outlook reflects its expectation that the prudent financial management of the Ras Al Khaimah government and its adequate financial reserves provide good room for maneuver in managing its fiscal policy amid current developments.
The report highlighted the "continuity of government policies" included in the emirate's legislative and executive systems as a key factor in the decision to stabilize its credit rating, pointing to the significant progress made by the government as part of its unwavering commitment to building more robust economic institutions such as the Ras Al Khaimah Statistics Centre (RAKSC), thus maintaining Ras Al Khaimah's credit rating of "A" since 2008.
Commenting on this, an official spokesperson for the Government of Ras Al Khaimah said: "The confirmation of the Ras Al Khaimah Ranking for 2026 with a stable outlook reflects the global confidence in our emirate's ability to keep pace with current developments, 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.
Standard & Poor's expects the government of Ras Al Khaimah to continue to pursue a conservative fiscal policy, resulting in fiscal surpluses of an average of 3% of its GDP over the period 2026-2029.
The report emphasizes Ras Al Khaimah's ability to adjust its expenditures as a key factor to overcome uncertainty, citing the successful actions taken by the emirate's government during the COVID-19 pandemic as a living example of this.
The report further notes that a strong net asset position could partially contribute to mitigating financial risks from large contingent liabilities, expecting the interest burden of government loans to remain below 5% of its revenues due to low debt.
Ras Al Khaimah has a thriving and diversified economy, and the emirate's GDP is spread across a variety of sectors, enhancing its ability to attract and retain talent and businesses – from small and medium enterprises to large global companies.
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