UAE - Mubasher: Fitch Ratings has affirmed Ras Al Khaimah's (RAK) Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'A', with a stable outlook.

The rating is driven by the benefits of the emirate's membership in the UAE, low government debt burden, the recent record of prudent fiscal management, and high GDP per capita, according to a press release on Tuesday.

However, Ras Al Khaimah's small size and weak policy framework, including the poor availability of economic data, would negatively affect the ratings.

Despite the coronavirus (COVID-19) economic repercussions, the emirate's public sector registered a surplus of about 1.5% of GDP to record AED 555 million in 2020, down from 2.5% of GDP in 2019, as expenditure was cut sharply.

The global rating agency expected public-sector surpluses of about 1% of GDP in 2021 and over 2% in 2022, in line with the budget framework.