UAE yacht builder on creating 'floating villas' for the rich in Ras Al Khaimah


Ramola Talwar Badam
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A luxury yacht builder from Poland has begun manufacturing multimillion-dollar boats in Ras Al Khaimah, with the first vessels to ship out by the end of the year.

Sunreef Yachts has built high-end catamarans for more than two decades in its Gdansk factories, with buyers including tennis player Rafael Nadal and Formula One driver Fernando Alonso.

Keen to expand beyond Europe, the company’s French founder Francis Lapp chose the UAE as the base for his first overseas shipyard two years ago.

The shipyard in Ras Al Khaimah has started production of twin-hull yachts and was formally inaugurated on Monday by Sheikh Saud bin Saqr Al Qasimi, Ruler of Ras Al Khaimah.

For the future of boating, this is the best place. This is the right place
Francis Lapp,
Sunreef

More than 180 staff are employed at the site. The company aims to provide jobs to more than 600 by the end of the year.

“My vision was to make something here – to show that Ras Al Khaimah is the right place for a shipyard, to be closer to Asia and Australia,” Mr Lapp told The National.

“For the future of boating, this is the best place. I did not want to have it all in Europe. To make [vessels] in Turkey or somewhere else was also a possibility. I chose this, this is the right place.”

Crafting luxury

Mr Lapp moved from Poland, his home of 30 years, to Dubai four years ago. He now travels almost every day to the Ras Al Khaimah port to supervise the production of the spacious yachts.

“When I started in Poland in 2002, Poland was not popular for super luxury yachts, only for big ships,” he said.

“We brought luxury to Poland and now we are doing the same in Ras Al Khaimah.”

The Dh100 million ($27.2 million) shipyard will cater to a growing demand for spacious yachts. Construction is already under way on a second shipyard at the site to cope with orders worth $170 million to be delivered over the next two years.

The majority of orders come from Europe, while the company also has clients from Australia, Asia and the US.

Formula One driver Fernando Alonso, right, with Sunreef Yachts founder Francis Lapp. Photo: Sunreef Yachts
Formula One driver Fernando Alonso, right, with Sunreef Yachts founder Francis Lapp. Photo: Sunreef Yachts

The Ras Al Khaimah shipyard will first produce midrange 44 foot to 88 foot catamarans with solar-panelled roofs, with the vessels priced between $1.5 million and $12 million.

The luxury transatlantic 140-foot yachts built in the company’s Polish shipyard cost up to $50 million.

Luxury is seclusion

Often described as floating villas, the boats are tailor-made for each client, with features including walnut wood interiors, granite kitchen and dining areas, master suites with walk-in dressing rooms and private balconies. Storage space can also be added for jet skis and kayaks.

“Luxury is not only to show the boat in front of Bulgari hotel in Dubai,” said Mr Lapp, 66. “Luxury, too, is an island, a place where you are alone.”

He said the boats allowed celebrities and sports stars such as Alonso to steer clear of the public eye.

“He has enough of show in Formula One,” Mr Lapp said. “He wants to go someplace and not be photographed, no press, nothing, to have a nice holiday.

“That’s why people are choosing our products, our catamarans, to go to someplace where you cannot go with normal boats.”

Longer trips, further afield

The time clients spent sailing has increased over the past few years, with people extending their voyages from a matter of weeks to months.

“Now clients stay two or three months on the boat in the summer, bring their family, make a long trip,” said Mr Lapp, who has sailed with his family from Monaco to Dubai.

Polish government officials believe more companies will follow Sunreef’s example and expand operations in the UAE.

The Polish Business Council in Dubai was recently inaugurated, with more companies expected to open in the Emirates.

“I feel proud. It is a symbol of our deepening economic co-operation,” said Ignacy Niemczycki, a senior official in Poland’s Ministry of Economic Development and Technology.

“It’s the first large Polish investment in the UAE and my hope is this paves the way for others.”

  • Luxury catamarans are being produced at Sunreef Yachts shipyard that has opened in Ras Al Khaimah. Photo: Sunreef Yachts
    Luxury catamarans are being produced at Sunreef Yachts shipyard that has opened in Ras Al Khaimah. Photo: Sunreef Yachts
  • Inside the Sunreef 80 Eco yacht. The company's luxury yachts are often described as floating villas. Pawan Singh / The National
    Inside the Sunreef 80 Eco yacht. The company's luxury yachts are often described as floating villas. Pawan Singh / The National
  • A robot prepares the moulding of a boat at the new shipyard. Pawan Singh / The National
    A robot prepares the moulding of a boat at the new shipyard. Pawan Singh / The National
  • The hull of a yacht being built by Sunreef in Ras Al Khaimah, at the high-end catamaran company’s first overseas shipyard. Pawan Singh / The National
    The hull of a yacht being built by Sunreef in Ras Al Khaimah, at the high-end catamaran company’s first overseas shipyard. Pawan Singh / The National
  • Sunreef workers preparing the roof of a boat. The plan is for the company's mid-range catamarans to be constructed in the UAE. Pawan Singh / The National
    Sunreef workers preparing the roof of a boat. The plan is for the company's mid-range catamarans to be constructed in the UAE. Pawan Singh / The National
  • A new Ultima twin-hull range, equipped with solar panels on the roof, will be the first to be produced in the UAE. Sunreef Yachts
    A new Ultima twin-hull range, equipped with solar panels on the roof, will be the first to be produced in the UAE. Sunreef Yachts
  • The Sunreef 80 Eco yacht. Pawan Singh / The National
    The Sunreef 80 Eco yacht. Pawan Singh / The National
  • Sunreef's new factory will build 55ft and 70ft twin-hull boats to supply a growing demand in the Middle East and Asia. Pawan Singh / The National
    Sunreef's new factory will build 55ft and 70ft twin-hull boats to supply a growing demand in the Middle East and Asia. Pawan Singh / The National
  • Glass fibre sections being moulded for the yachts. Pawan Singh / The National
    Glass fibre sections being moulded for the yachts. Pawan Singh / The National
  • Sunreef workers preparing the roof of a boat in Ras Al Khaimah. Pawan Singh / The National
    Sunreef workers preparing the roof of a boat in Ras Al Khaimah. Pawan Singh / The National
  • Master builders from Sunreef's main factory in Poland are training workers from countries including Sri Lanka and India in RAK. Pawan Singh / The National
    Master builders from Sunreef's main factory in Poland are training workers from countries including Sri Lanka and India in RAK. Pawan Singh / The National
  • Orders have been secured from buyers around the world mainly from Europe, clients are also drawn from Asia, Australia and the United States. Pawan Singh / The National
    Orders have been secured from buyers around the world mainly from Europe, clients are also drawn from Asia, Australia and the United States. Pawan Singh / The National
  • Francis Lapp, founder and president of Sunreef Yachts said: 'We brought luxury yachts to Poland and now we are doing the same in Ras Al Khaimah.' Pawan Singh / The National
    Francis Lapp, founder and president of Sunreef Yachts said: 'We brought luxury yachts to Poland and now we are doing the same in Ras Al Khaimah.' Pawan Singh / The National
  • Ignacy Niemczycki, Poland's undersecretary of state in the Ministry of Economic Development and Technology, said Sunreef's investment in Ras Al Khaimah will encourage other Polish companies to expand into the UAE. Pawan Singh / The National
    Ignacy Niemczycki, Poland's undersecretary of state in the Ministry of Economic Development and Technology, said Sunreef's investment in Ras Al Khaimah will encourage other Polish companies to expand into the UAE. Pawan Singh / The National
  • Patryk Hetman, Sunreef's production general manage at RAK. Prices for the yachts range from $2 million to $50 million. Pawan Singh / The National
    Patryk Hetman, Sunreef's production general manage at RAK. Prices for the yachts range from $2 million to $50 million. Pawan Singh / The National
  • More than 180 men and women are employed at the shipyard in Ras Al Khaimah with the number of employees set to go over 600 by the end of this year. Photo: Sunreef Yachts
    More than 180 men and women are employed at the shipyard in Ras Al Khaimah with the number of employees set to go over 600 by the end of this year. Photo: Sunreef Yachts
  • Formula One champion Fernando Alonso with Francis Lap, Sunreef Yachts founder. The experienced driver is among the owners of a luxury twin-hull catamaran that allows him to anchor away from the crowds and media. Photo: Sunreef Yachts
    Formula One champion Fernando Alonso with Francis Lap, Sunreef Yachts founder. The experienced driver is among the owners of a luxury twin-hull catamaran that allows him to anchor away from the crowds and media. Photo: Sunreef Yachts

UAE is home

Mr Lapp plans to move his family from Dubai to Ras Al Khaimah next year, once his teenage daughter heads off to study at university.

“I love Dubai and the UAE. I feel my home is here,” he said.

He wants the shipyard in Ras Al Khaimah to be used to deliver the same vessels as the Gdansk site. “Now our clients are asking us about quality and I say, ‘Yes, for sure, the quality will be the same in Ras Al Khaimah,” he said.

“We will bring this same level of quality of Poland that we did in the last 20 years to Ras Al Khaimah. I do not want to be number two. Every morning my challenge is how – in innovation, quality - how to be number one.”

COMPANY PROFILE

Company name: Blah

Started: 2018

Founder: Aliyah Al Abbar and Hend Al Marri

Based: Dubai

Industry: Technology and talent management

Initial investment: Dh20,000

Investors: Self-funded

Total customers: 40

Key figures in the life of the fort

Sheikh Dhiyab bin Isa (ruled 1761-1793) Built Qasr Al Hosn as a watchtower to guard over the only freshwater well on Abu Dhabi island.

Sheikh Shakhbut bin Dhiyab (ruled 1793-1816) Expanded the tower into a small fort and transferred his ruling place of residence from Liwa Oasis to the fort on the island.

Sheikh Tahnoon bin Shakhbut (ruled 1818-1833) Expanded Qasr Al Hosn further as Abu Dhabi grew from a small village of palm huts to a town of more than 5,000 inhabitants.

Sheikh Khalifa bin Shakhbut (ruled 1833-1845) Repaired and fortified the fort.

Sheikh Saeed bin Tahnoon (ruled 1845-1855) Turned Qasr Al Hosn into a strong two-storied structure.

Sheikh Zayed bin Khalifa (ruled 1855-1909) Expanded Qasr Al Hosn further to reflect the emirate's increasing prominence.

Sheikh Shakhbut bin Sultan (ruled 1928-1966) Renovated and enlarged Qasr Al Hosn, adding a decorative arch and two new villas.

Sheikh Zayed bin Sultan (ruled 1966-2004) Moved the royal residence to Al Manhal palace and kept his diwan at Qasr Al Hosn.

Sources: Jayanti Maitra, www.adach.ae

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If a business does not apply for the refund on time, they lose their credit.

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4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

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Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

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Updated: March 28, 2024, 12:09 PM