Ras Al Khaimah, UAE-based RAK Ceramics, is one of the world's largest ceramic tile producers, exporting to 135 countries. Several rounds of IFC financing have supported the company’s strategy of expansion into emerging market countries. A 2002 agreement with IFC financed the construction of a ceramic sanitaryware plant in Bangladesh, establishing RAK as the market leader for quantity—and quality. The company’s two-phased, $24.7 million Bangladesh project also included expansion of the company’s existing ceramic tile manufacturing capacity. IFC support also enabled construction of new plants in India, Iran and China.
IFC role and development impact
- $12 million in support of Bangladesh expansion project by way of long-term financing, not easily available in the country. Support for expansion strategy leads to strong returns: Bangladesh plant earns high marks as the company’s most profitable facility
- 400-plus direct jobs with training, and enhanced economic opportunity in one of the world’s poorest countries
- Increased availability of high-quality, lower-cost ceramic tile bathroom fixtures: sanitaryware at prices roughly 50 percent below duty-free imports is more affordable for the average Bangladeshi and contributes to improved health and well-being of lower-income families.
- Transfer of advanced manufacturing technology has raised the bar for other manufacturing enterprises in the country.
