Muscat: Al Maha Ceramics (Al Maha) has announced the acquisition of a 45 per cent stake in Al Hael Ceramics Company (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 exports 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 million. The factory has state-of-the-art manufacturing facilities and its equipment has been purchased from the leading Italian equipment manufacturer, SACMI. Al Hael can 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 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 120,000 as a service fee in the first 2 years and in subsequent years it will be entitled to 10 per cent of the net profits.
The GCC market of floor and wall tiles is estimated to grow at an annual rate of 6 per cent between 2022-2028 CAGR and reach 328 mil sqm and $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 $550 mil. Oman’s tile market is expected to grow to 65.5 million sqm by 2028 and generate revenues of $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 favourable position to serve Oman and the GCC demand for ceramic and porcelain tiles.
Al Maha plans to start producing its first tiles in the 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.
