Ras Al Khaimah has maintained its ‘A+’ Long-Term Issuer Default Rating from Fitch, highlighting the emirate’s strong financial position and resilience despite ongoing regional uncertainty.
Fitch said the direct risks linked to the regional conflict have eased since April 2026. While the situation has affected the timing and cost of a major investment project, the impact on Ras Al Khaimah’s wider economy has remained limited.
One of the key changes in Fitch’s latest assessment is its improved outlook for economic growth.
Fitch now expects Ras Al Khaimah’s GDP to grow by 1.5% in 2026, compared with its previous forecast of a 1.8% contraction. The upward revision reflects stronger-than-expected performance during the first half of the year, supported by domestic demand and increased activity across the Gulf.
Growth is expected to accelerate to around 5% in 2027. At the same time, consolidated public-sector debt is forecast to remain broadly stable at around 11% of GDP between 2026 and 2028.
Ras Al Khaimah has been building a diversified economy across manufacturing, tourism, real estate, services and other industries. No single sector accounts for more than 23% of the emirate’s GDP, helping reduce its reliance on one particular source of growth.
The emirate is also home to more than 73,000 companies, including major businesses such as RAK Ceramics and Julphar. Economic zones such as RAKEZ and Innovation City are supporting further growth across industrial, manufacturing and digital sectors.
This diversification is becoming increasingly important as Ras Al Khaimah continues to position itself as a destination for businesses, investors and residents.
Tourism and real estate are also playing a growing role in the emirate’s development. Ras Al Khaimah has attracted major international hospitality brands, including Wynn, Four Seasons, Nobu, Waldorf Astoria and Ritz-Carlton.
Large-scale projects are expected to further change the emirate’s residential, commercial and tourism landscape. RAK Central, for example, is set to add new commercial and residential space as the emirate continues to develop.
Ras Al Khaimah’s latest Fitch rating comes at a time when the emirate is strengthening its position as a place to live, work and invest.
With 100% foreign ownership, no personal income tax, competitive operating costs and a strategic location between East and West, the emirate continues to attract international businesses and investors.
Its population of around 400,000 people, representing more than 150 nationalities, is also supported by a growing range of residential, hospitality and lifestyle developments.
Bottom line
For investors looking beyond Dubai and Abu Dhabi, Ras Al Khaimah is increasingly becoming a market worth watching, supported by economic diversification, major tourism projects and a growing international profile.
At One Investments, we see developments like this as a strong reminder of the value of forward planning. We prioritise understanding our investors objectives and identifying opportunities that match their vision, ensuring a careful balance between potential growth and security.
