RAK’s credit rating affirmed by Fitch at ‘A’

RAK’s credit rating affirmed by Fitch at ‘A’

RAS AL KHAIMAH: Ras Al Khaimah’s credit rating has been affirmed at ‘A’ with an outlook upwardly revised from ‘Stable’ to ‘Positive’, according to international credit rating agency Fitch.

US-based Fitch Ratings, one of the ‘Big Three’ credit ratings agencies, stated that the revision to positive reflected "our expectation of continued budget surplus, combined with RAK’s record of prudent fiscal management and public finances’ resilience during the COVID-19 pandemic". It also takes into consideration Ras Al Khaimah’s position as part of the UAE, which enjoys a prominent economic standing in the region and the world, as well as the Emirate’s low government debt and high GDP per capita.

The report by Fitch revealed that government spending partly supported by the significant revenues from government assets have enabled Ras Al Khaimah to focus on its ongoing strategy to ensure a stable and diversified economy. The report asserted that the Emirate’s agility in terms of spending has led to a budget surplus in the government sector equal to 1.4 percent of GDP in 2021. In addition, Ras Al Khaimah reported a significant recovery in 2021, driven by growing international demand, increased tourist footfall and real estate revenues.

A spokesperson for Ras Al Khaimah Government said,