Global rating agency Fitch Ratings on 4 October 2026 affirmed the long-term credit rating of the emirate of Ras Al Khaimah (RAK) at A+ and, in the same action, removed the emirate from Rating Watch Negative — the watch status it had been placed under earlier against the backdrop of regional conditions. The 2026 real GDP forecast was revised from an expected 1.8% contraction to 1.5% growth, with a 5% rebound projected for 2027. For businesses operating in or looking to enter the emirate via RAKEZ and other free zones, this is a signal that the investment profile of Ras Al Khaimah is back within its prior envelope.
What happened
Fitch is one of the three largest global credit rating agencies, alongside Moody's and S&P. The Long-Term Issuer Default Rating (IDR) is the key metric by which investors and lenders assess the risk of sovereign bonds and corporate financing within a jurisdiction. An A+ rating on Fitch's scale sits inside the investment-grade category and signals a low expected probability of default.
In the rating action published on 4 October 2026, Fitch took two distinct decisions on Ras Al Khaimah:
- the rating was affirmed at A+;
- the emirate was removed from Rating Watch Negative — a status assigned when a near-term downgrade is possible. Fitch justified the removal by saying that direct risks linked to regional geopolitical conditions have eased since April 2026, with limited impact on major investment projects.
The rating action was carried by the official state news agency WAM and by major UAE business outlets — Gulf News and Khaleej Times. The primary source is Fitch Ratings itself.
GDP forecast: revised upward
The main quantitative change is the revision of the real GDP forecast:
| Period | Previous Fitch forecast | New forecast (04 Oct 2026) |
|---|---|---|
| 2026 | −1.8% (contraction) | +1.5% (growth) |
| 2027 | — | +5% (rebound) |
Fitch cited first-half 2026 data as the basis for the 2026 upgrade: the economy proved more resilient than the agency had expected in the spring. Two drivers were highlighted — solid domestic demand and recovery of activity within the Gulf region. For 2027 the agency sees a return to a 5% expansion path.
What supports the A+ rating
Fitch listed the pillars behind the A+ rating:
- Low public-sector debt. Consolidated public-sector debt is forecast at around 11% of GDP across 2026–2028 — a very conservative level for an investment-grade sovereign.
- Substantial fiscal buffers. The emirate retains fiscal headroom to absorb external shocks without a sharp rise in borrowing.
- High GDP per capita. A structural indicator of the jurisdiction's wealth that Fitch consistently weighs when rating Gulf countries and sub-sovereigns.
- UAE federation membership benefits. The emirate shares federal institutions, the central bank's monetary framework and the UAE's external economic infrastructure — all of which cushion standalone risks and strengthen the credit profile.
What it means for business in Ras Al Khaimah
The A+ affirmation and removal from Rating Watch Negative is a meaningful signal for companies operating in or looking to enter the emirate:
- Cost of capital. For resident companies that tap bank financing or issue bonds, the sovereign rating is an upper benchmark. Removing the negative watch typically eases access to borrowed funds and stabilises their cost.
- Investment confidence. Fitch's assessment is that major development and industrial projects in the emirate were not materially damaged by earlier regional risks. That reduces the "country premium" factor in business cases for RAK entry.
- Free zones. Through RAKEZ and specialised industrial zones, Ras Al Khaimah remains one of the UAE's competitive jurisdictions for manufacturing, light industry and regional HQs. We cover the structural basics — fees, licences, residency — in "How to Set Up a Company in the UAE: 2026 step-by-step guide".
Context: UAE macro
Fitch always reads a sub-sovereign rating against the federal backdrop. The UAE itself carries an AA− rating from Fitch with a stable outlook, and the federal profile remains the anchor for individual emirates' sovereign ratings. The main parameters for UAE growth in 2026–2027, non-oil sector drivers and the Central Bank (CBUAE) outlook are collected in a separate piece — our UAE economy outlook 2026.
In brief
- 4 October 2026 — Fitch affirmed Ras Al Khaimah at A+ and removed the emirate from Rating Watch Negative.
- GDP 2026: forecast revised from −1.8% to +1.5%; GDP 2027: rebound to +5% projected.
- Public-sector debt: around 11% of GDP in 2026–2028, stable.
- A+ pillars: low public-sector debt, fiscal buffers, high GDP per capita, UAE federation membership.
- Context: the UAE itself is at AA− (stable); the federal profile anchors emirate-level ratings.
This article is informational and does not constitute investment or tax advice. For the current text of the rating action, consult the Fitch Ratings release and primary sources (WAM). For questions on setting up a business in Ras Al Khaimah, contact Garant Business Consultancy.
