Maritime biz a pivotal source of income in ME

ALKESH SHARMA / Emirates Business

The Middle East remains a key market for the growth of global yacht industry. According to well-placed survey reports, nearly 55 percent of region’s ultra-wealthy buy superyachts, and it is the highest proportion of any global market.
“The 55 percent ‘propensity to buy’ for the Middle East is the highest of all regions,” said Robert van Tol, Superyacht Builders Association (SYBAss) Director of Operations.
“This percentage is based on historic ownership of superyachts versus the number of UHNWIs (ultra high net worth individuals) at that time, but it also means that if there is an increase in the number of UHNWIs in the Middle East, then 55 per cent of them are likely to buy a superyacht. Therefore, this region will always remain very important,” he pointed out.
The region is indisputably led by the UAE, which unfailingly ranks among the major manufacturing nations for super-yachts, according to the ShowBoats International Global Order Book.
While yacht industry is catering to adventure lovers or promoting leisure activities in the region, interestingly over the years, maritime businesses also have emerged as pivotal source of income while ensuring region’s sustainable economic growth.
“Yachting is not only limited to sea tourism or luxury lifestyle in the Middle East region, but also encompasses a much wider scope. Currently, this industry is one of the fastest growing segments and job providers in the market,” Abhijeet Wadwalkar, senior manager at Manama-based Gulf Water Sports, which had taken part in Arabian Travel Market in Dubai this year, told Emirates Business.
Notably, the official figures from Dubai Maritime City Authority say that new licenses issued for water craft of all types more than doubled in 2015 when compared with 2014. As many as 1,623 licences were issued last year while only 698 were issued in 2014. Wadwalkar also emphasised that
in some parts of the Middle East, rapidly growing yachting industry has also put a remarkable effect while deciding about
the type of growth in the areas surrounding sea coastline.
“Yacht and boat industry covers various areas including engineering, manufacturing, marketing and designing. It has also impacted the style of city-life developments in the areas that are in close proximity with sea. We have seen many classic sea-front developments coming up in this region because of flourishing yacht industry in that area,” stated Wadwalkar.
According to the Superyacht Builders’ Association, the region’s market for yachts, greater than 40 meters in length, has grown at an average of nearly 6 percent per year from 2009 to 2015.
In a bid to promote yachting industry in this region, Emirates also holds Dubai International Boat Show, the most trusted and established marine industry exhibition in the Middle East. This event showcases yachts and boats from both local and international builders together with the latest innovations in marine equipment and accessories.