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RAK Ceramics Defies Regional Headwinds with Q2 Profit Growth

Thu, Aug 6, 2026(90d ago)Business

RAK Ceramics has demonstrated impressive resilience in its second-quarter performance, reporting a net profit of Dh68.3 million—a 2.9 percent increase compared to the same period last year. Despite facing significant global challenges, such as elevated logistics expenses and regional supply chain volatility, the company successfully bolstered its gross profit margin to 41 percent. This growth was largely driven by a booming construction and real estate sector in the UAE, which served as a vital buffer against difficulties encountered in international markets like Europe and India.

The company’s strategic focus on its core markets in the UAE, Saudi Arabia, and Bangladesh proved instrumental, with the UAE specifically seeing a massive 22.7 percent revenue surge. CEO Abdallah Massaad attributed this success to the firm’s ability to pivot quickly, utilizing local raw materials and alternative shipping routes to maintain service reliability. While the company grappled with temporary setbacks elsewhere, such as gas shortages impacting production in India and high export costs affecting European sales, management remains optimistic. Moving forward, RAK Ceramics plans to prioritize high-value products and operational efficiency to ensure long-term value for its stakeholders.

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