The Ras Al Khaimah (RAK) has signed an agreement with the Government of Andhra Pradesh (AP) to invest Rs. 9,000 crore (USD 2 billion) to set up an alumina plant and aluminum smelter unit to be used to produce ceramic tiles. AP has agreed to ensure supply of bauxite used in alumina production. RAK is part of the United Arab Emirates (UAE) is one of the largest producers of ceramic tiles in the world.

The 2.5 million ton alumina plant and the .25 ton smelter unit will need 225 million tons of bauxite and is to be set up in Jerrela in Visakhapatanam district and will have a long term contract with the AP Mineral Development Corporation (APMDC) to access bauxite in Jerrela. Pricing has not been closed and is to be decided by a high-level committee. The project is expected to be complete within 36 months of clearances and will provide employment to 10,000 people and .5 per cent of its revenue will be granted towards tribal welfare.