Rating agency Standard & Poor’s (S&P) has upgraded the UAE emirate of Ras al-Khaimah to A/A-1, with a stable outlook.

The agency views the emirate’s public finances as strong and supported by a “prudent fiscal policy”.

Ras al-Khaimah also benefits from indirect financial support from the rest of the UAE and would receive extra funding if required.  

S&P estimates the emirate’s net general government asset position currently stands at approximately 4 per cent of gross domestic product (GDP) between 2013 and 2016. This includes the debt and liquid assets of all publicly owned entities.

Ras al-Khaimah could be further upgraded if the transparency and strength of its political institutions improves.