Al Maha announces acquisition with Al Hael Ceramics to launch mega ceramic tiles manufacturing venture in Oman

In November 2022, Al Maha intends to begin producing its first tiles in Al Hael plant

Al Maha announces acquisition with Al Hael Ceramics to launch mega ceramic tiles manufacturing venture in Oman

Al Maha announces acquisition with Al Hael Ceramics to launch mega ceramic tiles manufacturing venture in Oman

Al Maha Ceramics SAOG, one of the largest ceramic tiles producing company in the Sultanate of Oman has announced the acquisition of a 45-per cent stake in Al Hael Ceramics Company LLC – CACI.

Al Maha Ceramics SAOG was founded in 2006 with a vision to provide quality ceramic tiles and world class designs entrenched in every single tile. Situated at the Sohar Industrial area over a sprawling 150,000 square metres, the company strives for, the perfection in design and quality par excellence. It produces around 6 million square metres of tiles per annum and exports its tiles to over fifteen countries. In November 2022, Al Maha intends to begin producing its first tiles in Al Hael plant. The factory is projected to create over three hundred jobs and would support Oman’s Vision 2040 in diversifying Oman’s economic pursuit.

Al-Hael Ceramic is the largest ceramic and porcelain tile producing company in the Sultanate of Oman with eight production lines and 15 million square metres per annum as a production capacity. Al Hael Ceramics company was established in 2014, with a vision to manufacture world’s finest ceramic and porcelain tiles along with world class excellent designs. The company’s factories are located at Sur Industrial Area over 160,000 square metres. Al Hael industrial plant was completed in 2019 with an investment of about RO 40 million. The plant has an ultra-modern manufacturing facilities and its equipment have been purchased from the leading Italian manufacturer of machines, SACMI Group.

As part of the contract, Al Maha would also operate Al Hael for a period of five years, with a probability of extending for another five years, thus allowing Al Hael to benefit from Al Maha’s experience in the production and sales of tiles. In return Al Maha will receive RO 120,000 as a service fee in the first two years and in successive period it would be entitled to 10 per cent of the net profits.

Al Maha and Al Hael Ceramics to become one of the largest tiles producers in the GCC region

The Gulf Cooperation Council (GCC) market of floor and wall tiles is estimated to raise at a Compound Annual Growth rate (CAGR) of 6 per cent between 2022-2028, and USD 4.1 billion in revenues and attaining 328 million square metres by 2028. The market demand in Oman for tiles is at present projected to be around 40 million square metres per annum and valued at around USD 550 million. The Sultanate of Oman’s tile market is anticipated to grow to 65.5 million square metres by 2028 and generate revenues of USD 1 billion.

Al Maha and Al Hael Ceramics would have a total combined capacity to produce over 24 million square metres in porcelain and ceramic tiles. It would become one of the largest tiles producers in the GCC and the only producer of porcelain tiles in the Sultanate of Oman. Consequently, Al Maha and Al Hael Ceramics would be in a favourable position to serve Oman and the GCC demand for ceramic and porcelain tiles.

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