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, who succeeded his father Sheikh Saqr Bin Mohammed Al Qasimi as the Ruler of Ras Al Khaimah in 2010, and the Swiss-Lebanese engineer Khater Massaad. RAK Ceramics is listed on the Abu Dhabi Securities Exchange. Over a period of twenty years the company developed into the world’s largest ceramics manufacturer with a global annual production output of 117 million square meters of ceramic and porcelain tiles, 4.5 million pieces of bathware and 20 million pieces of tableware.^[2] The main factory complex in the UAE is located in the Arabian desert about an hour by car from Dubai International Airport. The products are made from local sand, clay and feldspar, as well as imported specialist materials, mostly using equipment made by 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 personally owns 39.88 percent. An additional 4.98 percent is held by the Government of Ras Al Khaimah. Emirates Rock and Marble Company has an 8.11 percent share, and one of Saud's brothers, Sheikh Omar Bin Saqr Al Qasimi holds 5.28 percent ^[3]

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 sanitary-ware market and about one third of the ceramics market in Bangladesh.^[4] The majority of the company, about 90%, is owned by foreign investors with the remaining portion controlled by local interests.^[4] In an effort to raise additional capital and raise local ownership to a target of 20% the company is moving forward with its first and recently approved book building IPO.

Labor

Since its creation in 1991, RAK Ceramics in the UAE has relied on European machinery and Asian migrant workers.^[5] At present, around 8,000 employees work for the company in the UAE.^[2]

Challenges

RAK Ceramics bucked global recession patterns by expanding production by 10 percent in 2009.^[6] However, the share price fell to around 1 AED.

References