**Interiors Demand: Key Drivers**

Home renovations are becoming a major driver in the UAE's construction supply chain, shifting demand from developers to consumer-driven projects. This trend, particularly noticeable post-pandemic, is fueled by homeowners upgrading kitchens, bathrooms, and living spaces, especially in buildings constructed in the early 2000s. Consumers are increasingly opting for premium materials and design-focused products, viewing them as a lifestyle choice rather than a cost-saving measure.

RAK Ceramics is adapting to this shift by expanding its offerings to include larger surfaces, marble-effect finishes, and complete bathroom solutions. This strategy aims to position the company as a lifestyle solutions provider. This focus on premium demand has positively impacted financial performance, with the UAE being its strongest market, experiencing significant revenue growth. The company's diversification across international markets helps balance regional cycles, mitigating the impact of weaker demand in certain areas.

Despite global challenges, RAK Ceramics achieved revenue growth and increased profits. The company's success is attributed to strong local sales, higher-margin projects, and efficiency improvements. Investments in automation, AI tools, and manufacturing efficiency helped control expenses and protect margins, with minimal price increases for customers.

The company is adjusting its regional strategy to adapt to market shifts, focusing on higher-margin projects and retail segments. The company is also building a new tile facility in Yanbu, Saudi Arabia. With renovation demand, premium product uptake, and steady project activity in the UAE, the company is well-positioned to benefit from both real estate upgrades and ongoing construction across the region.