Why luxury yacht makers are choosing the UAE to build boats for the world

Dubai: The UAE is steadily establishing itself as a global manufacturing base for luxury yachts, with home-grown builder Gulf Craft saying international demand for UAE-made vessels is growing, while Poland-founded Sunreef Yachts is expanding production in Ras Al Khaimah to serve export markets across three continents.

Speaking to Gulf News, Gulf Craft Group CEO Erwin Bamps said perceptions of UAE manufacturing have changed dramatically over the past two decades.

"Twenty years ago, we were standing in the big yacht shows of the world... we had to also be an ambassador for the Middle East, for the manufacturing industry in the Middle East, and for Dubai," he said.

"Today... people are having an expectation simply because you're coming out of the Emirates. Now if you live and work in the UAE and you go outside, you must have a story to tell."

The comments come as luxury yacht builders continue to increase investments in the UAE, reflecting the country's growing role in high-value manufacturing and exports.

Manufacturing shift

Bamps said Gulf Craft's biggest milestone in recent years has been expanding its international footprint by investing in a wider dealer network and taking its products to more overseas markets.

He said the company's yachts are now sold to customers "from Mexico all the way to Australia", helping establish Gulf Craft as a global engineering and manufacturing brand.

He also said the company is well aligned with the UAE's growing focus on advanced manufacturing.

"I believe that the UAE is appealing to manufacturing industries to develop themselves here," Bamps said.

"It is not looking for mass volume, low-cost manufacturing... but it is focused on the added value that you can create here."

Export focus

Both Gulf Craft and Sunreef are increasingly using the UAE as a base to serve international markets.

Sunreef said its location between Europe, Asia and Africa has made the Emirates a central production and export hub for its global operations.

The company has also increased spending on UAE suppliers by more than 50 per cent year on year, while continuing to localise production across manufacturing, logistics and technical services.

For Gulf Craft, international demand has also continued despite recent geopolitical uncertainty.

Bamps said the company continues to receive enquiries from customers around the world and is expanding its global dealer network.

"We see that reflected in our growing dealer network. The clients are calling us from all corners of the world," he said.

How yachts are built at Gulf Craft

According to Bamps, building a luxury yacht is a lengthy, largely hand-crafted process that can take anywhere from several months for smaller vessels to around 18 months for larger yachts.

The process begins with designing and creating a custom mould for each yacht model—a stage that alone can take up to six months.

Once the mould is ready, workers lay multiple layers of fibreglass and resin inside it, allowing each layer to cure naturally before the hull is removed. The curing process cannot be accelerated, making it one of the most time-consuming stages of construction.

After the hull is completed, the yacht moves through a series of specialised workshops where engines, generators, piping and internal bulkheads are installed.

At the same time, dedicated teams manufacture bespoke furniture, cabinetry and wall panels using marine plywood and premium wood veneers before fitting them inside the vessel.

Many yachts are sold before completion, allowing buyers to personalise interiors and finishes while construction is still underway.

Depending on the size of the vessels being built, Gulf Craft's shipyard has the capacity to produce around 20 to 30 yachts a year, with higher volumes possible for smaller models.

Technology investments

Gulf Craft said it is using artificial intelligence, although Bamps said its immediate focus is on improving design and engineering processes rather than replacing people.

"It's not about replacing anything, it's about optimising and speeding up design and engineering processes," he said.

Sunreef also said it is introducing AI-supported operational systems and sustainable manufacturing solutions, including solar integration, to improve efficiency across its facilities.

Global ambition

Looking ahead, Gulf Craft expects international demand to remain strong.

Bamps said the company is seeing continued interest from overseas markets while expanding its manufacturing footprint beyond the UAE, including a new facility in the Maldives that will also export yachts to regional markets.

Commenting on business disruptions Gulf Craft may have experienced during the US-Israel-Iran war, Bamps said the biggest disruption was in logistics during the early days of the conflict.

"The first few days were really about logistics. We had to make sure shipments could continue and routes remained open," he explained.

However, he expects business to remain positive despite geopolitical uncertainty.

Bamps said Gulf Craft has continued to receive enquiries and orders from around the world, and has not seen a significant slowdown in its core customer base despite recent regional tensions.

Sunreef expands

Polish boatmakers Sunreef Yachts said last month it has invested more than Dh 54 million in industrial infrastructure in the UAE over the past two years as it expands operations in Ras Al Khaimah.

The company now operates a 65,000-square-metre yacht production facility at RAK Maritime City, alongside a 15,000-square-metre industrial site dedicated to furniture, woodwork and stainless steel manufacturing.

Together, the facilities allow the company to carry out more production processes within the UAE while improving quality control and production timelines.

Sunreef currently employs more than 1,300 people from over 40 nationalities in the UAE and plans to increase that workforce to around 2,000 employees as production expands.

The shipyard can currently build more than 50 yachts annually, including models from its Ultima range and its sailing and power catamarans.