Dubai: They may be millionaires and billionaires, but that doesn’t mean they don’t know the value of money. Luxury yacht sellers say prospective buyers are more demanding than ever this year ahead of the Dubai International Boat Show, which kicks off on March 3.
Boat buyers are more frugal now after having burnt their fingers in the 2008 financial crisis, according to Gregor Stinner, chief executive of Art Marine, a yacht dealership and marina operator in the UAE.
“People are still expecting fantastic deals that we cannot accommodate. From what we have witnessed, and also our competitors, are not having outrageous, significant sales. Maybe this is a phase. People are still reconsidering at this point of time- is it the right moment? Some people might say they want to go bigger, others might say we don’t need that big,” he said.
The political and economic situation in the region has led buyers to become more cautious about where they invest their funds, he said. “In 2008, you had the real estate crisis here. In 2011, you had the Arab Spring, which affected people in their decision-making. A lot of people are concerned about what’s next. I think everybody got burnt a bit in between. Whether it’s the real estate or the economic crisis, people learnt.”
At a press conference ahead of the show in Dubai on Tuesday, boat makers, dealers and other members of the UAE marine industry indicated that the positive sentiment is back in the industry since the 2008 financial crisis.
“Yacht sales, international and local, have been increasing steadily since the financial crisis,” said Sultan Al Shaali, chief executive of Ajman-based boat manufacturer Al Shaali Group.
The UAE maritime industry is valued at more than $61 billion, according to a statement from the Dubai World Trade Centre (DWTC), the show’s organiser, citing data from the Dubai Council for Marine and Maritime Industries.
“According to the Dubai Maritime City Authority, the maritime sector contributes Dh14 billion towards the Dubai GDP [gross domestic product],” said Trixi LohMirmand, senior vice president of exhibitions and events management at the Dubai World Trade Centre, the show’s organiser.
The Dubai International Boat Show will feature more than 430 boats and yachts worth Dh1 billion, with a participation from more than 800 companies from 54 countries. It is expected to have 45 local and international product launches, up from 42 in the previous year.
Ajman-based boat maker Gulf Craft will showcase its $10 million Majesty 122 super yacht. It measures less than 122 feet and features five bedrooms.
Gulf Craft will also launch a new brand at the show, said Erwin Bamps, chief executive of the company.
He did not give details on the new brand except to say “it is feeding into the market that is growing now, where people want to enjoy more space. It’s a family yachting concept with a bit of an explorer touch.”
Aside from yachts, the show will have other kinds of boats, such as sailing boats and kayaks. The companies in the kayaking, sailing and surfing sectors have grown by 20-25 per cent over last year’s show, LohMirmand said on the sidelines of the conference.
Art Marine, meanwhile, expects to sign a memorandum of understanding with Kleindienst Group, the developer of the Heart of Europe at The World Islands, on the second day of the show.
The show will also have a series of talks on the marine industry.
The event is open to the public. It wraps up on March 7.
