4 October 2026
Fitch Ratings has affirmed Ras Al Khaimah’s Long-Term Issuer Default Ratings at A+ and removed the emirate from Rating Watch Negative, the Emirates News Agency (WAM) reported on 4 October 2026. Fitch now expects Ras Al Khaimah’s economy to grow 1.5% in 2026, against a contraction of 1.8% in its previous forecast, and to accelerate to 5% growth in 2027. Consolidated public-sector debt is projected to stay broadly stable at about 11% of GDP over 2026-2028.
Key figures at a glance
| Indicator | Fitch, October 2026 | Before |
|---|---|---|
| Long-Term Issuer Default Ratings | A+, affirmed | A+ |
| Rating Watch | removed | Rating Watch Negative |
| GDP growth forecast, 2026 | +1.5% | contraction of 1.8% |
| GDP growth forecast, 2027 | +5% | not published in the release |
| Consolidated public-sector debt, 2026-2028 | about 11% of GDP, broadly stable | not published in the release |
What Fitch decided and why
According to the WAM release, the affirmation reflects an easing of the direct risks linked to the geopolitical challenges the region has faced since April 2026. Fitch said their impact on Ras Al Khaimah was limited to a modest delay and a marginal increase in the cost of launching what the agency described as a potentially transformational investment project in the emirate.
The release does not name the project. Khaleej Times, reporting on the same rating action, links it to the Wynn Al Marjan integrated resort on Al Marjan Island, a project of USD 5.1 billion (about AED 18.7 billion). The newspaper reports that construction is continuing and that the opening has been pushed back by six months.
Fitch listed four factors that support the A+ rating despite uncertain regional conditions:
- low public-sector debt;
- substantial fiscal buffers;
- high GDP per capita;
- the benefits of membership of the UAE federation.
The WAM release does not state the rating Outlook that follows the removal of the Watch. Khaleej Times reports that Fitch still sees the outlook leaning negative because of uncertain regional conditions.
Why the growth forecast changed
The revision from a 1.8% contraction to 1.5% growth for 2026 is a swing of 3.3 percentage points. Khaleej Times dates the earlier, negative forecast to April 2026. Fitch based the new number on data for the first half of 2026, which in its view showed greater resilience than expected. Two drivers are named in the release: solid domestic demand and stronger intra-Gulf activity.
For 2027, Fitch forecasts growth to rebound to 5%. Public-sector debt, which the agency treats as one of the main pillars of the rating, is expected to remain at about 11% of GDP from 2026 to 2028. A spokesperson for the Ras Al Khaimah Government said the affirmation, the removal from Rating Watch Negative and the higher 2026 forecast reflect the resilience of the economy despite regional and global challenges.
What Rating Watch Negative means
Fitch uses a Rating Watch to signal that a rating may change in the near term because of a specific event. A Negative Watch points to a possible downgrade. Removing the Watch means the agency no longer sees that near-term pressure on the A+ rating. On the Fitch scale, ratings in the A category denote high credit quality and low default risk expectations.
How the rating compares
Fitch had last affirmed the emirate at A+ with a Stable Outlook in May 2025. S&P Global affirmed Ras Al Khaimah at A/A-1 with a stable outlook, as reported by WAM on 14 September 2026. Fitch’s A+ sits one notch above S&P’s A on the comparable letter scale.
At federal level, S&P affirmed the UAE at AA with a stable outlook in September 2026; our report on that decision is here: S&P affirms UAE at AA with a stable outlook.
What this means for companies in Ras Al Khaimah
A sovereign rating measures the government’s capacity to repay its debt. It does not change licence fees, activity lists, visa quotas or bank account procedures in the Ras Al Khaimah Economic Zone (RAKEZ), at RAK International Corporate Centre (RAK ICC) or for mainland licences issued by the Ras Al Khaimah Department of Economic Development. Companies operating in the emirate work under the same rules today as they did before the rating action.
What the decision does provide is an independent, data-based reading of the emirate’s finances: low debt, fiscal buffers and a forecast return to growth in 2026. For founders comparing emirates, it sits alongside practical factors such as setup costs, office requirements and banking access. One recent example of the latter is the RAKEZ and RAKBANK route for opening a business account, covered in our article on the 60-minute business account opening.
If you are considering Ras Al Khaimah for a new company, these are the points to check before you apply:
- which jurisdiction fits the activity: the RAKEZ free zone, RAK ICC for holding structures, or a mainland licence;
- whether your exact business activity appears on the licensing authority’s list;
- how many residence visas the licence and office package allow;
- which bank fits the company profile and what documents the bank will ask for at onboarding;
- registration for Corporate Tax with the Federal Tax Authority, with 9% applying to taxable income above AED 375,000.
How Atlant Capital can help
Atlant Capital helps entrepreneurs choose between free zone and mainland options across the UAE, including Ras Al Khaimah, and takes the company setup through licence, visas and registration. We prepare the documents for bank account opening and support the process until the account is active. For a step-by-step overview of the process, see our UAE company formation guide.
Conclusion
Fitch has kept Ras Al Khaimah at A+, removed the Rating Watch Negative and raised its 2026 forecast from a 1.8% contraction to 1.5% growth, with 5% expected in 2027 and public-sector debt at about 11% of GDP. The direct effect of the regional events since April 2026 was, in Fitch’s assessment, limited to a modest delay and a marginal cost increase for one large investment project.
Source: Emirates News Agency (WAM), Khaleej Times.
FAQ
What credit rating does Fitch give Ras Al Khaimah?
A+. On 4 October 2026 Fitch affirmed Ras Al Khaimah’s Long-Term Issuer Default Ratings at A+ and removed the emirate from Rating Watch Negative. Fitch said the rating is supported by low public-sector debt, substantial fiscal buffers, high GDP per capita and the benefits of UAE federation membership.
What is Fitch’s GDP growth forecast for Ras Al Khaimah?
Fitch expects Ras Al Khaimah’s GDP to grow 1.5% in 2026 and 5% in 2027. The previous forecast for 2026 was a contraction of 1.8%. The upgrade is based on first-half 2026 data showing solid domestic demand and stronger intra-Gulf activity.
Why was Ras Al Khaimah on Rating Watch Negative?
Because of the direct risks from the geopolitical events in the region since April 2026. Fitch now says these risks have eased and their impact was limited to a modest delay and a marginal cost increase for one large investment project, which Khaleej Times identifies as the USD 5.1 billion Wynn Al Marjan resort.
Does the Fitch rating change anything for companies in Ras Al Khaimah?
No. A sovereign rating assesses the government’s ability to repay debt; it does not change licence fees, visa rules or bank procedures in RAKEZ, RAK ICC or on the mainland. It is an independent reading of the emirate’s finances that founders can weigh alongside setup costs and banking access.
