Muscat: Al Maha Ceramics SAOG (“Al Maha”) has announced the acquisition of a 45% stake in Al Hael Ceramics Company LLC (Al Hael”). Al Maha was founded in 2006 and is one of the largest ceramic tiles manufacturers in Oman. It produces around 6 mil sqm of tiles annually and export its tiles to over 15 countries. Al Hael is the largest manufacturer of tiles and porcelain in Oman with a capacity to produce up to 18 mil sqm of tiles annually. Al Hael manufacturing plant was completed in 2019 with an investment of around OMR 40 mil. The factory has state-of-the-art manufacturing facilities and its equipment have been purchased from the leading Italian equipment manufacturer, SACMI. Al Hael is able to produce tiles of a large variety of sizes including the largest sizes in demand by the market.
As part of the transaction Al Maha will also operate Al Hael for a period of 5 years, with a possibility of extending for another 5 years, thereby allowing Al Hael to benefit from Al Maha’s extensive experience in the production and sales of tiles. In return Al Maha will receive OMR 120k as a service fee in the first 2 years and in subsequent years it will be entitled to 10% of the net profits.
The GCC market of floor and wall tiles is estimated to grow at an annual rate of 6 % between 2022-2028 CAGR and reach 328 mil sqm and USD 4.1 billion in revenues by 2028. The market demand in Oman for tiles is currently estimated to be around 40 mil sqm per annum and valued at around USD 550 mil. Oman’s tile market is expected to grow to 65.5 mil sqm by 2028 and generate revenues of USD 1 billion.
Al Maha and Al Hael will have a total combined capacity to produce over 24 mil sqm in porcelain and ceramic tiles. It will become one of the largest tiles produces in the GCC and the only producer of porcelain tiles in Oman. It will therefore be in a favorable position to serve Oman and the GCC demand for ceramic and porcelain tiles.
Al Maha plans to start producing its first tiles in Al Hael factory in November 2022. The factory is expected to create over 300 jobs and will support Oman’s Vision 2040 in diversifying Oman’s economic activity.
