International credit rating agency Standard & Poor's has affirmed the sovereign credit rating of the Emirate of Ras Al Khaimah at 'A/A-1' with a stable outlook. The agency anticipates broad economic stability in the emirate over the next two to three years. As the American agency, one of the three major credit rating agencies worldwide, notes, the stable outlook reflects its expectations that the prudent financial management of the Ras Al Khaimah government and its ample financial reserves provide a good degree of maneuverability in managing its financial amidst current developments. The agency's report highlights the 'continuity of government policies' ensured by the legislative and executive systems in the emirate as a key factor in the decision to affirm its credit rating. It points to the tangible progress made by the government within its firm commitment to building more resilient economic institutions, such as the Ras Al Khaimah Statistics Center (RAKSC), enabling the emirate to maintain an 'A' credit rating since 2008. Commenting on this, an official spokesperson for the Ras Al Khaimah government stated, 'The affirmation of Ras Al Khaimah's credit rating for 2026 with a stable outlook reflects global confidence in our emirate's ability to navigate current developments, guided by the wise and visionary leadership of His Highness Sheikh Saud bin Saqr Al Qasimi, Member of the Supreme Council and Ruler of Ras Al Khaimah.' They added, 'Thanks to its advanced infrastructure, the emirate has proven its ability to face challenges, and it continues to implement its plans to ensure its growth and prosperity.' Standard & Poor's expects the Ras Al Khaimah government to continue its conservative financial policy, achieving an average financial surplus of 3% of its GDP between 2026 and 2029 as a result. The agency's report confirms the emirate's ability to adjust its expenditures as a fundamental factor in overcoming uncertainty, citing the successful measures taken by the emirate's government during the COVID-19 pandemic as a living example. The report also indicates that the strong net asset position can partially mitigate financial risks arising from large contingent liabilities, and it is expected that the burden of government loan interest payments will remain below 5% of its revenues due to the low level of debt. It is noted that the Emirate of Ras Al Khaimah is characterized by a prosperous and diversified economy, with its GDP distributed across a wide range of sectors, which enhances its ability to attract and retain talent and businesses, from small and medium enterprises to large multinational corporations.
