United Carton Industries (UCIC), a leading packaging company in the region, announced that its board of directors has approved a strategic expansion project for its factory in Ras Al Khaimah, United Arab Emirates. This significant decision will be implemented through its wholly-owned subsidiary, Ras Al Khaimah Packaging Company Limited, at an estimated cost of AED 74 million.
Strategic background and market context
This move is part of UCIC’s ambitious expansion plan, which aims to solidify its leading position in the growing packaging market in the Gulf region. This sector is experiencing rapid growth driven by several factors, most notably the boom in e-commerce, the expansion of the food and beverage industry, and the increasing demand for sustainable and environmentally friendly packaging solutions. The UAE, and specifically the Emirate of Ras Al Khaimah, is a vital industrial and logistics hub, making it an ideal location for this expansion, which will enhance the company’s ability to efficiently meet local and regional demand.
Project importance and expected impact
The project is expected to have a multifaceted positive impact. Locally , this expansion aligns with the UAE's industrial strategy, contributing to strengthening the local industrial base, creating new job opportunities, and supporting national supply chains. Regionally , the increased production capacity will enhance the company's market share in the GCC countries, enabling it to compete more effectively. At the company level , this investment will directly contribute to increased revenues and profits, benefiting the shareholders of the company listed on the Saudi Stock Exchange (Tadawul).
Project details and timeline
According to the company's statement, the AED 74 million project will be financed through a combination of equity, debt, and the company's internal cash flow, reflecting its strong financial position. Construction is planned to begin in the second quarter of 2026, subject to obtaining all necessary regulatory approvals. The company anticipates commencing a one-month trial production phase by the third quarter of 2027, followed immediately by the start of commercial production in the same quarter. The subsidiary, Ras Al Khaimah Packaging Limited, will be responsible for the full execution of the project, adhering to the highest corporate governance standards.
