The demand for luxury yachts in the region is rising as more cryptocurrency investors enter the market, and those who bought property during the pandemic cash in on their long-term profits, experts have told The National.
Speaking at the Dubai International Boat Show, which got under way in the emirate on Wednesday, industry insiders said requests for luxury superyachts from millionaires moving to the Emirates is the main trend in the sector right now.
“We're seeing more crypto investment types and also those who have made money from Nvidia stock,” Brett Noble, co-founder of Bush and Noble yacht brokerage, told The National. “Also we're starting to see a lot of people who bought property here during Covid and sold it for a significant profit recently and having a bit of extra cash now. It used to be people around the 40 age mark who were buying yachts but now we're seeing people a lot younger getting involved.”
Ownership of superyachts in the Middle East and North Africa (Mena) region has increased by 20 per cent over the past five years, according to the organisers of the boat show. Last year's event unveiled superyachts worth a total of Dh2.9 billion.
Hiring sprees to meet demand
In some cases, extra staff have had to be hired to cope with the surge in demand from the ultra-rich hoping to take to open waters in style.
“We've increased our staff by about 10 per cent, which is 150 people, because demand is so high right now,” said Mohammed Hussein Alshaali, chairman of UAE-based superyacht manufacturer Gulf Craft. “There's a steady growth of high net worth individuals (HNWI) moving to Dubai and a lot of them are becoming part of our market.”
Thousands of millionaires moved to the UAE last year, according to a report last month by global analytics firm New World Wealth and investment migration advisers Henley & Partners.
The number of super-rich individuals moving to the UAE significantly exceeded the 6,700 that was originally predicted in October, The National understands. It is almost double the projections for those moving to the US, in second place with 3,800, and third-place Singapore with 3,500.
The report found the UAE is the top place for HNWIs to establish a home. The growing appetite for superyachts was reflected by Gulf Craft, which unveiled eight new models on Wednesday morning at the boat show.
“This is the busiest we've been since Covid,” said Mr Alshaali. His belief that the influx of ultra-rich into the region was driving the increase in demand was echoed by another regional expert.
“There are a lot of [ultra-rich] people coming to live here in Dubai. They moved here from Europe and that's why we're seeing a lot of new play in town in the market,” said Mohamad Z Chehab, chief executive of Princess Yachts Middle East.
Not just a boys' club
Any suggestion that yachts are exclusively bought by rich white middle-aged men would be wide of the mark, according to Mr Noble.
“There's a misconception that it's the man buying the boat,” he said. “It's very much a family-wide decision because, after all, they are going to be sharing the same space together [at sea].
“It's also been the case for quite some time that a lot of women here in the GCC are into yachting and buy boats to spend time with their friends in a private space.”
Another emerging trend, he said, was that many owners were requesting superyachts with a lot of extra open space.
“Instead of closed-off areas with smaller areas, people are asking for areas which can be opened up to make them more fun,” he said, adding these areas of a boat are referred to as beach clubs within the industry.
“They want to have more areas to lounge or swim. It means they can stay on the boat instead of docking and having to find somewhere else for that sort of experience. Rather than going back and forth to a hotel, they are spending more time on the boat.”
