RAK Ceramics

RAK Ceramics is an international consumer ceramics company based in the Persian Gulf sheikhdom of Ras Al Khaimah, a member of the UAE. It was established in 1991 under the management of Sheikh Saud Bin Saqr Al Qasimi and the Swiss-Lebanese engineer Khater Massaad. RAK Ceramics is listed on the Abu Dhabi Securities Exchange.

The main factory complex in the UAE is located in the Arabian desert about an hour by car from Dubai International Airport. Raw materials include local quartz and feldspar, as well as imported kaolin, ball clay and feldspar. Most equipment is from the Italian Sacmi company.

Ownership

The largest shareholder of RAK Ceramics is its founder, Sheikh Saud bin Saqr al Qasimi, the ruler of Ras Al Khaimah, who owns 39.88%. An additional 4.98% is held by the Government of Ras Al Khaimah. Emirates Rock and Marble Company has an 8.11%, and one of Saud's brothers, Sheikh Omar Bin Saqr Al Qasimi holds 5.28%.^[2]

Affiliates abroad

In addition to its production facilities in Ras Al Khaimah, RAK Ceramics operates plants in China, Sudan, Bangladesh, India and Iran.

RAK Ceramics Bangladesh holds over a quarter of the sanitaryware market and about one third of the ceramics market in Bangladesh.^[3] The majority of the company, about 90%, is owned by foreign investors with the remaining portion controlled by local interests.^[3] To raise additional capital, and raise local ownership to a target of 20%, the company is undertaking its first book building IPO.

Labour

Since its creation in 1991, RAK Ceramics in the UAE has relied on European machinery and Asian migrant workers.^[4]

Challenges

In 2009 RAK Ceramics withstood the global recession to expand production by 10%.^[5] However, the share price fell to around 1 AED.

References