Fitch Keeps Ras Al Khaimah at A+ as 2026 Growth Outlook Improves to 1.5%
By Thasmiya
Ras Al Khaimah has received another vote of confidence in its economy, with Fitch Ratings affirming the emirate’s **Long-Term Issuer Default Rating at A+** and sharply improving its outlook for economic growth in 2026.
Fitch now expects Ras Al Khaimah’s economy to grow by **1.5% in 2026**, reversing its previous forecast of a **1.8% contraction**. The ratings agency said data from the first half of the year showed the economy had been more resilient than previously expected, supported by solid domestic demand and stronger activity within the Gulf.
## **Why did Fitch maintain Ras Al Khaimah’s A+ rating?**
Fitch said several factors continue to support Ras Al Khaimah’s credit profile, including **low public-sector debt, substantial fiscal buffers, high GDP per capita and the benefits of being part of the UAE federation**.
The agency also said direct risks associated with regional geopolitical challenges have eased since April 2026.
While those conditions affected a potentially transformational investment project in the emirate, Fitch said the impact was limited to a modest delay and a marginal increase in launch costs.
## **2026 growth forecast improves significantly**
One of the biggest changes in Fitch’s latest assessment is its outlook for Ras Al Khaimah’s economy.
The agency previously expected real GDP to contract by **1.8% in 2026**. It has now revised that forecast to **1.5% growth**.
That represents a **3.3 percentage-point upward revision** from the previous forecast.
Fitch based the change on stronger-than-expected performance during the first half of 2026, with domestic demand remaining solid and intra-Gulf activity strengthening. Reports on the assessment also highlighted activity in areas including mining and economic zones.
## **Ras Al Khaimah could see stronger growth in 2027**
The outlook becomes considerably stronger next year.
Fitch expects Ras Al Khaimah’s GDP growth to accelerate to approximately **5% in 2027**.
The forecast comes as the emirate continues to expand across tourism, hospitality, real estate, manufacturing and economic-zone development.
Ras Al Khaimah has increasingly positioned itself as a destination for international businesses, investors and tourists while maintaining a more diversified economic base than one dependent on a single industry.
## **Public-sector debt expected to remain low**
Ras Al Khaimah’s relatively low debt burden remains an important part of its credit strength.
Fitch expects consolidated public-sector debt to remain broadly stable at approximately **11% of GDP between 2026 and 2028**.
The combination of manageable debt and substantial financial buffers gives the emirate greater flexibility when responding to economic or regional pressures.
For comparison, Fitch had already highlighted Ras Al Khaimah’s low public-sector debt as one of its strengths when affirming the A+ rating in 2025.
## **Ras Al Khaimah removed from Rating Watch Negative**
Another significant development is Fitch’s decision to remove Ras Al Khaimah from **Rating Watch Negative**.
The move reflects the agency’s assessment that the direct risks arising from geopolitical conditions have eased compared with April.
This does not mean economic risks have disappeared, but it indicates that Fitch no longer sees the earlier circumstances as requiring the same level of negative rating scrutiny.
## **What does an A+ credit rating mean?**
Credit ratings provide investors with an independent assessment of a government or organisation’s ability to meet its financial obligations.
An **A+ rating from Fitch is an investment-grade rating**, indicating a relatively low expectation of default risk, although the entity can still be more vulnerable to adverse economic conditions than issuers carrying higher AA or AAA ratings.
For Ras Al Khaimah, maintaining the rating can help reinforce investor confidence as the emirate continues attracting international investment and financing major development projects.
## **Ras Al Khaimah also retains strong S&P rating**
Fitch is not the only major ratings agency to have recently assessed Ras Al Khaimah.
In September 2026, S&P Global affirmed the emirate’s **A/A-1 rating with a stable outlook**.
S&P said the stable outlook reflected its expectation that the Ras Al Khaimah Government would continue pursuing prudent fiscal and economic policies while maintaining a substantial net asset position.
The separate assessments use different rating methodologies, but both point to the emirate’s fiscal position and economic resilience as important strengths.
## **What Ras Al Khaimah Government said**
A Ras Al Khaimah Government spokesperson said the emirate’s continued growth despite regional and global challenges reflects the resilience and strength of its economy.
The government also pointed to the A+ affirmation, removal from Rating Watch Negative and improved 2026 growth projection as signs of increasing confidence in Ras Al Khaimah’s economic trajectory.
## **Why this matters**
Fitch’s latest assessment is significant because the change is not simply about maintaining an existing credit rating.
The agency has moved from expecting Ras Al Khaimah’s economy to **shrink by 1.8% in 2026 to forecasting 1.5% growth**, while also expecting growth to accelerate to **5% in 2027**.
For businesses and investors, the A+ rating, relatively low debt levels and improved economic forecast provide another indication of Ras Al Khaimah’s ability to remain resilient despite regional uncertainty.
For the emirate, the challenge will be maintaining that momentum as major tourism, real estate and investment projects move forward.
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