RAK Ceramics considers new Saudi plant as demand heats up

The strong US dollar has increased construction costs in the UAE. (Supplied)
Updated 08 August 2019

RAK Ceramics considers new Saudi plant as demand heats up

LONDON: RAK Ceramics is considering adding a secondary manufacturing plant in Saudi Arabia to meet local demand as well as growing export markets in Europe. 

The UAE-based tile maker reported an 8.5 percent decline in second quarter profits to 110 million dirhams ($29.9 million) compared to a year earlier as it absorbed rising energy costs. 

Total revenue fell 6.8 percent to 1.29 billion dirhams during the period, but its sanitaryware sales were lifted 7.6 percent on sales to Saudi Arabia, India and Europe. 

“We have seen an improvement in our gross margins during the period due to continued investment in operational efficiencies,” said RAK Ceramics Group CEO Abdallah Massaad. “Despite high energy costs, we remain focused on running an efficient and profitable business.” 

A slowdown in the regional construction industry has hurt demand for tiles as fewer new villas and apartments are built while at the same time, the strong US dollar to which the UAE dirham is pegged has made construction exports from the country more expensive. 

RAK Ceramics is one of the largest ceramics’ brands in the world with the capacity to produce 123 million square meters of tiling per year across its 22 factories in the UAE, India, Bangladesh and China. 


Saudi Arabia starts selling triple-tranche dollar bonds

Updated 21 January 2020

Saudi Arabia starts selling triple-tranche dollar bonds

  • The kingdom is offering initial price guidance of around 110 basis points (bps) over US Treasuries for the seven-year paper

DUBAI: The government of Saudi Arabia started marketing on Tuesday US dollar denominated bonds split into tranches of seven, 12 and 35 years, a document showed.

The kingdom is offering initial price guidance of around 110 basis points (bps) over US Treasuries for the seven-year paper, 135 bps over the benchmark for the 12-year tranche, and 180 bps over for the 35-year.

Citigroup, Morgan Stanley and Standard Chartered are joint global coordinators and lead managers, and BNP Paribas, HSBC, JPMorgan and NCB Capital have been hired as passive lead managers.