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RAK Ceramics stays resilient in Q1 as UAE demand offsets regional disruptions
Strong UAE and Bangladesh demand, steady margins and disciplined execution helped RAK Ceramics navigate geopolitical tensions and supply chain pressures in Q1 2026
- PUBLISHED: Wed 13 May 2026, 9:06 PM
RAK Ceramics posted a resilient performance in the first quarter of 2026, supported by steady demand in the UAE and Bangladesh and tighter operational execution, even as regional conflicts weighed on revenues and profitability.
The UAE‑listed ceramics maker reported group revenue of Dh760.7 million for the three months to March, down 2 per cent year on year, reflecting disruptions linked to ongoing geopolitical tensions across parts of the region. Despite softer revenues, gross profit margin held firm at 39.4 per cent, underlining the company’s focus on product mix and cost discipline.
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Profit before tax declined 17.9 per cent year on year to Dh53 million, while EBITDA fell 6.1 per cent to Dh127.3 million. Net debt rose 8.5 per cent to Dh1.56 billion, mainly due to dividend payments during the quarter, with net debt to EBITDA at 2.53 times.
Management said stronger construction activity in the UAE continued to underpin performance. UAE revenues edged up 0.5 per cent to Dh211.5 million, supported by project‑led demand and growing uptake of large‑format porcelain tiles. Bangladesh also stood out, with revenues rising 18.8 per cent year on year following political stabilisation and stronger domestic demand.
Abdallah Massaad, Group Chief Executive Officer of RAK Ceramics, said the company had remained focused on reliability and execution despite a tough operating backdrop.
“Despite a challenging quarter marked by macroeconomic uncertainty, geopolitical tensions, and supply chain disruptions, RAK Ceramics delivered resilient results, supported by its diversified operations and strong regional footprint,” he said. “Proactive management actions and supply chain optimization ensured product availability and reliable service across markets.”
He added that the group continued to benefit from its local manufacturing base. “Demand in the UAE and Saudi Arabia remained strong, driven by construction activity and higher project contributions. As a local manufacturer, our UAE operations continue to benefit from national initiatives such as ‘Make it in the Emirates’ and a robust industrial ecosystem,” Massaad said.
Looking ahead, the company said it would stay focused on strategic priorities, including the integration of its Cookplay brand and value creation across Europe, India and Bangladesh, while navigating near‑term market uncertainty.
