• The small open economy of the Emirate of Ras Al Khaimah (RAK) is one of seven emirates that together form the United Arab Emirates (UAE; AA/Stable/A-1+).
• RAK’s growth drivers remain exposed to the Middle East war, and we continue to forecast a slower pace of expansion for 2026.
• We expect RAK’s government will remain committed to prudent fiscal and economic policies and preserve its substantial net asset position, despite elevated risks to growth and revenue.
• Our base case is that the UAE’s substantial fiscal, economic, external, and policy flexibility will act as an effective buffer against the impacts of regional conflict on the country as a whole. We think the UAE would provide extraordinary financial support to RAK if necessary.
• We therefore affirmed our ‘A/A-1’ sovereign credit ratings on RAK. The outlook is stable.