Ras Al Khaimah War-Related Risks Ease, GDP Growth Forecast Revised To 1.5%, Fitch Says

(MENAFN- Khaleej Times) Ras Al Khaimah's direct war-related risks have eased since April 2026, Fitch Ratings said, adding that the regional conflict“only set back modestly the planned opening time and raised the cost of a potentially transformational investment project.”

The emirate has several development plans underway, including RAK Central by Marjan, Mina Al Arab, a $2.72 billion coastal masterplan, and Al Marjan Island, the artificial archipelago which will feature high-end residential developments, hotels and the region's first integrated gaming resort.

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One of its most ambitious projects as of yet, the $5.1 billion Wynn Al Marjan integrated gaming resort, is still undergoing construction despite the war, although its opening was delayed by six months.

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In its creditworthiness assessment, the credit ratings agency has affirmed the emirate's Long-Term Issuer Default Ratings at A+, a rating which puts it at a low default risk, although slightly more vulnerable to business or economic factors.

It added that while the RAK's outlook continues to lean towards 'Negative', which it attributed to uncertain regional conditions, the 'A+' rating is supported by low public-sector debt, substantial fiscal buffers, high GDP per capita and the benefits of UAE federation membership.

RAK GDP set to rebound 5%

Fitch has also revised RAK's 2026 GDP forecast, which it projects will grow 1.5 per cent this year, rather than the previously reported 1.8 per cent contraction, in April. The revision was based on data from the first half of 2026, the agency explained, which indicated greater resilience, supported by solid domestic demand and stronger intra-Gulf activity.

GDP growth is forecasted to rebound to 5 per cent in 2027 while consolidated public-sector debt will remain broadly stable at about 11 per cent of GDP over the next two years.

“It is precisely this consistent strength, stability and strategic foresight that instill deep confidence in our economy, as evidenced by Fitch's reaffirmation of our 'A+' rating, removal from 'Rating Watch Negative' and upward revision of our growth for 2026,” a spokesperson for the RAK government said.

“Ras Al Khaimah's continued trajectory of growth, despite regional and global challenges, reflects the resilience and strength of the economy. The Emirate has consistently demonstrated remarkable resilience, turning challenges into opportunities for continued growth,” the spokesperson added.

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