While executives see opportunities, governments remain at loggerheads on other issues

DUBAI�In the 10 years since RAK Ceramics opened a $40 million tile manufacturing plant in Iran, the United Arab Emirates-based firm has racked up millions of dollars in losses in the Persian country, fired hundreds of employees and all but stopped its kilns from burning.

But then Iran struck a nuclear deal with the U.S. and other foreign powers this summer. Now with sanctions expected to ease, RAK Ceramics is looking to boost output of the kitchen and bathroom tiles it sells in Iran and the wider region. Executives for one of the world�s largest manufacturers of tiles and sanitary ware by capacity are now betting the long wait on Iran is about to pay off.

�We were a patient investor,� says Abdallah Massaad, RAK Ceramics� chief executive.

RAK Ceramics is one of a handful of Arab-owned firms positioning their businesses to profit from a post-sanctions neighbor, even as frosty political ties between Iran and most of the Gulf Cooperation Council�Saudi Arabia, Bahrain, the U.A.E., Oman, Qatar and Kuwait�show few signs of thawing.

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This article was written by Rory Jones & Nicolas Parasie for The Wall Street Journal on Aug. 31, 2015. Rory Jones writes about business and economics in the Middle East from The Wall Street Journal's Dubai bureau. Nicolas writes about business and finance in the Middle East and North Africa for The Wall Street Journal.