When Sweden lost its eastern part, Finland, in 1809, it became part of the Russian Empire. At the end of the 19th century, Europe’s economy was flourishing and demand for tableware in Russia was rising. The leaders of the Swedish porcelain factory Rörstrand became interested in entering the vast Russian market. They decided to build a ceramic factory in Finland, because the trade tariffs to Russia were significantly lower than those from Sweden. In 1873, Rörstrand received permission to build a ceramic factory north of Helsinki in an area called Arabia. This explains the Finnish factory's exotic name. The stated goal was to produce "porcelain, faience and other pottery.

In 1932, the ceramist Kurt Ekholm (1907-1975) was appointed artistic leader of Arabia, and he started the factory's famous art department that would soon be world-renowned. With Ekholm, a new era began in Arabia. He influenced the design of household goods in the spirit of functionalism with strict shapes and clean decorations, such as the Pekka and Sinivalko series. Ekholm had an ability to discover young talents, and he hired some of Finland's leading artists - including Michael Schilkin (1900-1962), Birger Kaipiainen (1915-1988), Kaj Franck (1911-1989), Rut Bryk (1916-1999), and Toini Muona (1904-1987).