Tuesday, Feb 28, 2017

DUBAI

The mid-range market in superyachts, or boats priced around $1 million (Dh3.67 million), is witnessing a resurgence in the GCC region, according to a number of senior executives at global yacht manufacturers.

In an event seen as a barometer for excess liquidity in the market, yacht makers and owners gather this week for the annual Dubai International Boat Show (DIBS) 2017, which began on Tuesday afternoon.

“We’ve seen an incredible resurgence of mid-sized yachts in the Middle East market in the last 12 months. We have four boats on their way and another two after that,” said Douglas Culverwell, Regional Business Manager, Sunseeker.

Culverwell defined mid-sized as 52 feet long, to around 70 feet long, boats.

Sunseeker has received 80 orders for its new Manhattan 52 since launching it in September 2016, a feat he described as “incredible.”

“The price of the Manhattan 52 is £810,000 ($1.05 million), and as with all the boats Sunseeker are producing at the moment, it is very well priced in the market place. The space and the package we’re offering is very competitive.”

Speaking in an interview on the opening day of DIBS 2017, the regional manager attributed this bump in interest from the region to a combination of factors.

“Brexit has created a favourable exchange rate for those buying from the UK. But also, the oil prices have reached a point where people feel more comfortable, and that combined with the weak pound has really helped us,” he said.

Despite claims from manufacturers that ultra-high net worth individuals remain unaffected by the recent economic downturn, sentiment at Dubai’s 25th annual boat show indicates that the middle of the market is seeing resurgence.

“People who can afford superyachts generally don’t fluctuate as much with the markets,” said Abeer Al Shaali, Executive Management Officer at Gulf Craft, a UAE-based yacht manufacturer.

In fact, perhaps counterintuitively, over the past two years, the interest has predominantly been in larger boats, according to Al Shaali.

“In recent years, the market has seen a lull in the mid-range sized boats. It always comes down to what is going on with the economy. But we’re beginning to see a demand again for the mid-range. We’re beginning to see people asking again for those sizes again,” she said.

One of the key attractions on display at DIBS this year is Silver Fast, a 252 foot yacht with a crew of 18. It is on sale at the event, priced at €79 million ($84 million).

Not everyone believes that the top end of the market is losing ground to the mid-range yachts in the GCC.

Tim Wiltshire, Group Sales Director of Burgess, the yacht brokerage who are co-listing Silver Fast, pointed out in an interview that “two sister ships of [the Silver Fast] have already sold in this part of the world in the last few years. So in terms of a very rarefied market, two boats of that size and style selling would suggest there definitely is a demand for boats of this size in the region.”

With that being said, Wiltshire agreed that the mid-range “is a developing market, as the manufacturing efficiencies have come down, and they now offer better value for money.”

By Ed Clowes Staff Reporter

Gulf News 2017. All rights reserved.