S&P Global Ratings updated the credit ratings on Ras Al Khaimah, affirming the A-/Stable/A-2 sovereign rating.
• The stable outlook reflects S&P Global Ratings' expectation that RAK's government will maintain its prudent fiscal stance over the next two years and that GDP growth will average a moderate 2.5% annually over 2021-2024.
• S&P expect that RAK's economy will return to growth of about 2.5% on average over 2021-2024, supported by a swift and broad rollout of Covid-19 vaccinations in the United Arab Emirates (UAE). However, real GDP per capita growth will remain below the average for similarly wealthy sovereigns.
• S&P expects domestic political stability will continue over the forecast period, with no significant government policy changes.
• The UAE's expenditure within the emirate materially alleviates RAK's spending needs. The government's net asset position continues to strengthen due to ongoing fiscal surpluses and early debt repayments. – TradeArabia News Service