RAK Ceramics gains ground at home as trade disruption raises cost of selling abroad

The same trade disruption making it harder for RAK Ceramics to export is bringing new customers to its doorstep. Suppliers from Italy, Spain, and India have struggled to deliver to the UAE, creating an opening for the local manufacturer of tiles and bathroom products to gain market share, Group Chief Marketing Officer Leonardo De Muro tells EnterpriseAM UAE. Meanwhile, its own overseas business faces sharply higher transportation costs.

At home, projects reaching completion are keeping orders coming: “The construction industry didn’t stop,” De Muro says, adding that developers have accelerated work to finish existing projects. Tiles arrive during fit-out, toward the end of construction, allowing RAK to capture demand from that pipeline. He describes an increase in sales and new customers without quantifying either. (For context, UAE revenue rose 22.7% y-o-y to AED 298.2 mn in 2Q, as we reported in August.)

De Muro also sees continued willingness to pay among its customers: Buyers who can afford higher-priced tiles are still purchasing them, while those with tighter budgets seek cheaper alternatives, he says. RAK’s position is “premium affordable”: it stays out of the entry-level segment without aiming to be the most expensive option. He says the disruption hasn’t affected showroom business from a pricing perspective, although he doesn’t specify whether RAK has changed its prices.

The domestic gains haven’t insulated the wider business: European revenue fell 35.7% y-o-y in 2Q, while group revenue slipped 0.5% to AED 822.8 mn. Europe remains an important market, but transportation costs have risen sharply, and RAK has sometimes routed shipments through Saudi Arabia, De Muro says. The GCC — its second market after the UAE — remains accessible, albeit with difficulties.

REMEMBER- Alternative routes keep goods moving but add expense: As we reported last week, east-coast ports are handling more diverted cargo, with the additional inland journey adding costs and putting pressure on transport infrastructure. RAK’s experience illustrates the trade-off for local manufacturers: less competition from imports can support domestic sales, while the same disruption weighs on exports.

Alongside those delivery challenges, RAK is using designer partnerships to strengthen its positioning and reach new markets. Its collaborations with Elie Saab and Roberto Cavalli serve both purposes, De Muro says. He points to Elie Saab and Karl Lagerfeld residential developments as examples of the commercial potential: “A big part of construction is now branded construction.” RAK is preparing a Roberto Cavalli presentation during Design Week.

The property market shows why developers keep reaching for a brand name: Binghatti announced a AED 30 bn Mercedes-Benz-branded development in Meydan, extending the trend beyond fashion houses. Dubai’s branded residences commanded a 56% premium over comparable non-branded homes in 1H 2026, according to Morgan’s International Realty data we covered in September. But transaction volumes fell 21% y-o-y — the premium remains attractive, while demand is under pressure.

Beyond the region, De Muro identifies the US as a market where RAK should do more. He gives no investment figure or expansion timetable, framing it as a window to strengthen the company’s presence. “We need to find the right moment,” he says.

For now, investment continues while the planning horizon stays short: Product development and improvements in RAK’s plants remain priorities despite the disruption, De Muro says. Asked about the next few years, he instead emphasizes responding to immediate conditions: “You have only to think very short term and try to figure out what is needed in this moment,” he says. “And live it day by day.”