Ras Al Khaimah, UAE – Standard & Poor’s, the global credit rating agency, announced that the sovereign credit rating of the Emirate of Ras Al Khaimah has been fixed at the level “A/A-1” with a “stable” future outlook.
The agency expected widespread economic stability in the emirate over the next two to three years.
The US agency stated that the emirate’s stable future outlook reflects its expectations that the wise financial management of the Ras Al Khaimah government and its ample financial reserves provide good room for maneuver in managing its financial policy amid current developments.
Solid economic institutions
The report highlighted the “continuity of government policies” guaranteed by the emirate’s legislative and executive systems as a key factor in the decision to stabilize its credit rating.
He pointed to the tangible progress made by the government as part of its firm commitment to building more robust economic institutions, such as the Ras Al Khaimah Statistics Centre “RAKSC.”
Ras Al Khaimah has thus maintained an “A” credit rating since 2008.
Standard & Poor’s expects the Ras Al Khaimah government to continue to pursue a conservative fiscal policy. As a result, it will achieve financial surpluses averaging 3% of its GDP during the period 2026-2029.
Adjust expenses
The report confirms Ras Al Khaimah’s ability to adjust its expenditures as a key factor in overcoming uncertainty.
He cited the successful measures taken by the emirate’s government during the COVID-19 pandemic as a vivid example of this.
The report also notes that a strong net asset position can partially help mitigate financial risks arising from large contingent liabilities.
He expected that the interest burden of government loans would remain less than 5% of its revenues due to the decrease in the volume of debt.
Ras Al Khaimah boasts a thriving and diversified economy, and the emirate’s GDP is distributed across a variety of sectors.
This enhances its ability to attract and retain talent and businesses, from small and medium-sized enterprises to major global companies.
