Delivering a keynote speech at the annual Gulf Superyacht Forum, Nasser Alshaali, CEO of local luxury yacht builder Gulf Craft, outlined the challenges and benefits of operating a production company in the UAE.

“We must be realistic about the United Arab Emirates as a manufacturing base,” said Alshaali at the Yas Hotel conference. “While the region continues to have strong liquidity, many of the perceived advantages of operating here, such as low cost of labor and general cost of doing business are diminishing due to direct and indirect fees, and the lack of properly zoned and priced land for private manufacturing.”

As the region’s largest producer of fiberglass yachts and boats, and with a dealership network spreading across 50 countries, the UAE-based company is looked at as a backbone of the regional marine economy and an indicator of the health of the market.

Despite the difficulties facing all luxury leisure markets, Alshaali praised the opportunities existing and opening up within GCC, particularly generated by the growth in marina facilities and establishing of marine associations.

“The UAE in particular has a great future as a yachting tourism destination if managed well, and the Abu Dhabi Tourism Authority has done tremendous work to demonstrate the potential of Abu Dhabi in this area,” claimed Alshaali. “The maturing of the leisure market, coupled with the region’s undiscovered yachting destinations and long yachting season makes it the ideal winter destination for yachts escaping the chill of the European environment.”

Alshaali also insisted that “unless, however, the regulatory environment surrounding marine and yachting improves, such as removal of ownership restrictions, support for maritime mortgages, freedom of movement between waterways and ports, the growth of this industry will always be limited. We also have a long way to go to match the strength and strategic advantage that Europe has with respect to the ingenuity of small and medium businesses.”

Organised in association with the Abu Dhabi Yacht Show, the Gulf Superyacht Forum was attended by top yacht designers, builders and professionals from the international yachting industry. Exhibiting at the Abu Dhabi Yacht Show, Gulf Craft is displaying its Majesty 77, Majesty 88, Majesty 101 and the flagship Majesty 121.
 

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