UAEBusiness

Dubai Yachting Boom Drives Growth And Fuels Investment

Within the space of a decade, the Arabian Gulf has gone through a transformation, thanks to regional governments investing millions to develop their yachting infrastructure. The U.A.E., and Dubai in particular, is at the forefront of this evolution. The city has developed a well-earned reputation as a premier destination for superyacht owners, maritime professionals and ultra-luxury tourism. The growth of the yachting industry in Dubai owes much to the expansion of state-of-the-art marinas and second-to-none yacht crew and refit facilities.

Thanks to visionary insight, strategic planning, and unwavering focus and effort, Dubai is now home to over 15 marinas and more than 3,500 berths, making it a superyacht capital in its own right. These exceptional yachting spaces include world-renowned berthing areas and marinas such as Dubai Harbour, P&O Marinas, Nakheel Marinas, Palm View Marina, Bay Marina, as well as the Bulgari Marina & Yacht Club. Dubai Harbour’s 20-million-square-foot expanse, for example, can accommodate up to 700 vessels, including superyachts up to 160 meters in length.

The city’s well-planned anchorage areas are naturally complemented by exceptional facilities that offer specialized yacht concierge services, and easy access to popular marine and land-based attractions and amenities. In combination with the mild climate, this creates an environment perfectly suited for yachting and fine living.

Dubai’s appeal has not gone unnoticed. The “U.A.E. Yachting Market Insight 2024” reports that the number of yachts visiting the U.A.E. during the 2023/2024 season rose by 12.28%. Equally significant was the fact that visiting superyachts were also bigger 11.69% larger, in fact, than those from the previous season. This trend highlights not only the growing number of yachting enthusiasts but also the increasing number of high-end vessels sailing into Dubai’s harbors.

A Comprehensive Yachting Ecosystem

The yachting industry in Dubai has also evolved to become a powerful driver for new business opportunities within and beyond the maritime sector. In recent years, the city has managed to attract key international yachting industry players to establish branches and manufacturing facilities, a move facilitated by Dubai’s progressive regulatory frameworks and strong government support.

The Dubai economy, one of the most diversified in the region, boasts an entrepreneurship ecosystem that has enabled the yachting industry to flourish. Companies involved in yacht design, construction, maintenance and brokerage, for example, have benefitted from the city’s strategic location, global reputation and business-friendly environment. The ripple effects of Dubai’s growing yachting industry have naturally extended beyond the sector.

A Haven For HNWIs

In its quest to become a leading global yachting hub, Dubai benefits from its existing international appeal and prominence, independent of its maritime attractions. The city is renowned for its expansive array of fine dining establishments, luxurious hotels and tourist attractions. It is also a multicultural city with international schools, an extraordinarily well-connected aviation hub and a prime geographic location between East and West. With a vibrant year-round calendar of cultural events and activities, Dubai is not just a great oasis to sail to but also an ideal location for extended stays and a highly desirable base for business operations.

“The marinas in Dubai not only offer state-of-the-art facilities but also serve as hubs for a range of complementary businesses, from luxury retail and hospitality, to yacht maintenance and charter services,” says Ian Harris, CEO of UK-headquartered Phoenix Yacht Management LLC, who relocated to Dubai in 2022 by taking advantage of the U.A.E’s 10-year golden visa residency scheme. Harris is seeing a thriving ecosystem develop in Dubai around superyachts and the yachting community, which has in turn spurred development of affiliated businesses and spinoffs. “It was a straightforward business decision to establish here,” he adds, “especially with the region’s increasing appeal to high net worth individuals (HNWIs) and luxury yacht owners.”

Increasing numbers of superyacht owners are beginning to register the charms and benefits of Dubai that have long been apparent to the many HNWIs and ultra-high net worth individuals (UHNWIs) who base themselves in the city. World-class facilities and infrastructure aside, Dubai is also one of the safest cities in the world. According to the Numbeo Quality of Life Index 2024, Dubai is the fourth safest city in the world, trailing Abu Dhabi, Taipei and Doha but ahead of Hong Kong, Singapore and Tokyo. Over the years, the emirate has become a magnet for international entrepreneurs, investors and family offices, transforming the city into one of the world’s foremost hubs for private wealth management.

Opportunities Beyond The Marina

As one of the world’s largest global hubs for private wealth management, Dubai’s rise as a financial center looks set to be increasingly intertwined with its growth as a luxury yachting destination. The city’s favorable financial services infrastructure, robust regulatory framework, and flexible inheritance and succession laws have made Dubai a compelling destination for international family offices, private banks, hedge funds and asset management firms. As more superyachts make their way to Dubai each year, the opportunities for wealth advisory service providers will likely compound.

The number of HNWIs in Dubai has risen steadily in recent years, driven by a strong economy and increasing investor confidence. At the end of 2023, the city was home to over 55,000 HNWIs a clear testament to Dubai’s standing as a hub for global wealth. A report by investment-based immigration consultants Henley & Partners titled “The UAE: A Strategic Haven for High-Net-Worth Families” revealed that the U.A.E. received a net inflow of 6,700 millionaires in 2024, noting further that this inflow was the highest of any country in the world.

This focus on attracting HNWIs from across the globe reflects the city’s broader commitment to achieving the goals of its Dubai Economic Agenda D33 initiative: to position the city as one of the world’s top four financial centers.

When it comes to the region’s wealth, it is evident that HNWIs and UHNWIs from the Middle East prefer to operate out of Dubai. The U.A.E. hosts more than 75% of the region’s family offices, of which more than half are in Dubai. The Dubai International Financial Centre (DIFC), for example, is currently home to over 300 companies managing nearly US$450 billion in private wealth. In addition, family offices operating out of Dubai can tap into US$3 trillion in private wealth located within an hour’s flight.

Cruising To Success

More than a mere maritime success story, Dubai’s vibrant yachting scene is a catalyst for economic growth. The city’s world-class infrastructure and vibrant living environment have made Dubai an irresistible draw not just for superyacht owners and yacht industry professionals but also HNWIs from across the globe.

As Dubai’s reputation as a superyacht destination grows, so too does its appeal with private wealth, entrepreneurs and global investors. At this dynamic intersection of sailing, fine living, wealth management and investment opportunity, Dubai looks poised to solidify its position as a global hub not just for superyachts but also as a thriving nexus for HNWIs and visionary investors.

Source: forbes

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