GCC Boat Market, by Boat Type (Pleasure Boat, Fishing Boat, Commercial Boat, Military Boat and Others), by Boat Size (less than 16ft, 16-26ft, 27-40ft, 41-65ft, above 65ft ) – Global Insights, Trends and Forecast, 2018 – 2025

Created On: Jun-2018
Report ID: IR108
Format: PDF

Market Outlook

The boat market in the GCC region is expected to maintain an upward growth trend during the forecast period (2018-2025) owing to factors such as high disposable income among the populous, growing tourism industry, ongoing infrastructural and maritime developments and growing presence of new players in the market. With high prevalence of high net worth population in the region and growing waterfront projects, yachting has become an integral part of the luxurious lifestyle amongst this group. As a result, demand for privately owned luxury boats continue to maintain positive growth in the region. In 2017, UAE was ranked 9th globally in terms of super yachts production in 2018 along with 14 new builds currently being manufactured in the Emirates.

Favorable government policies is also supporting the market growth in the region. The UAE Yacht Code introduced in 2015 provides freedom to the manufacturers to build yacht using different construction material such as steel, wood, aluminum. Furthermore, manufacturers are also provided more flexibility in terms of forming the yacht’s hull which can be through single or multi-structure hull.

Market Dynamics

Owing to new waterfront projects being developed in the region and increasing awareness among people, boat chartering activities is gaining popularity which is expected to play a major driving factor for the growth of the market in the region. People who cannot afford buying boats resorts to availing different chartered services for different activities such as fishing or water sports activities. Furthermore, hassle-free booking option and based on their spending, people can opt for different chartered packages. For instance, Royal Yachting offers different package options such as US $150 per hour for 33-feet fishing boat while also offering four hour package of its 33-feet fishing boat for around US $372.

The role of trade shows and exhibitions has been one of the key factors for the development of the boat industry in the region. In 2018, over 845 companies from 61 countries took part in the Dubai International Boat Show including some of the leading European boat manufacturers such as Mangusta, Tullio Abate, Sovereign Seas Hermes and others. Trade shows such as the Dubai and Kuwait Yacht show not only creates a platform to find suitable customers but also offers the manufacturers to showcase their latest offerings. For instance, during the Dubai Boat Show in 2017, Azimut Yachts showcased two different versions of its 77S and two models from the Flybridge Collections. Similarly, in 2018, Gulf Craft sold five yachts and boats and achieving sales of US $23 million during the five day Dubai International Boat Show.

Segmentation Analysis

In terms of segmentation, smaller sized boats tends to hold majority of the market share in terms of value sales in 2017 and is expected to maintain its dominance during the forecast period. In terms of size, these boats tends to occupy lesser number of people and tend to quality boating experience for a small family. Growth of this segment is majorly due to lower cost compared to bigger size boats such as yachts and super yachts. Wide usage of these kinds of boats for leisure fishing and cruising purposes are playing a role in driving the market growth. Additionally, rising water sports activities such as waterskiing and jet skiing amongst the tourist population has further created demand for smaller boats. Furthermore, wide usage of boats for chartered services and commercial fishing are also driving the demand the small sized boats. New launches by boat manufacturers in this segment will further create more opportunities for growth. For instance, in 2016, Instinct Marine introduced its 36-foot sport fishing boat, namely the Instinct 360, designed specifically for the Arabian Gulf waters.

Regional Analysis

Kuwait

Kuwait stands one of the leading markets for boats in the GCC countries and according to estimates there are over 20,000 registered leisure boats operating in the country. Growing boat rental services in the region owing to rising tourism and affordable packages is further fuelling market growth, For instance, packages for fishing charters range between US $80 to $250 for a six hour trip. High dependency on imports stands to be one of the major growth barrier in the market owing to less presence of small boats and yachts manufacturers and distributors operating in the country.

UAE

The evolving maritime industry in the UAE has been a key factor for the surging demand of boats in the region. In 2017, the maritime industry in UAE was valued at over $65 billion and with the continuous infrastructural and maritime development, the boat market is expected to witness a positive growth trend. Development of several waterfront projects, marinas and harbors in the region will further create demand for leisure yachting in the country. For instance, the under construction 20 million square foot Dubai Harbor Project is expected to be the largest marina in the Middle East and will be capable of handling 1400 vessels. Similarly, several waterfront projects currently construction such as the Sharjah Waterfront City and phase 4 of Azizi Riveria will include marinas and offer water transport and yachting facilities.

Competitive Landscape

The market for GCC boat market remains highly competitive with several players emphasizing on product innovation, new launches, merger and acquisitions and geographic expansion to increase market share. For instance, in 2014, Gulf Craft planned to invest US $100 million over the next five years to build a shipyard a service center for building super and mega yachts.

Some of the key leading players operating in this market include Gulf Craft, Azimut Yachts, The Al Dhaen Group, Gulf Master Boats, Al Fajer Group, Al Marakeb, Hareb Marine and others.

Our Research Approach Includes
  •  Market Outlining
  •  Framing discussion guide
  •  Data Validation
  • Data Analysis
  •  Re-Validation and Finalization of Data
  •  Report Insights and Publishing
Our Research Approach Includes
  •  Market Outlining
  •  Framing discussion guide
  •  Data Validation
  • Data Analysis
  •  Re-Validation and Finalization of Data
  •  Report Insights and Publishing
Reach Out to us