BY SATISH KANADY
The yacht market accounts for a major share of Middle East’s luxury market. The fact that the region’s luxury market is set to grow 15 to 20 percent in the coming years underlines the importance of Qatar’s yacht segment.
The emergence of a large number of glitzy-new sea-front luxury villas, development of more marinas and a young generation’s growing interests in water sports are reasons behind the nationals’ never-before love for the turquoise waters. Citizens’ new-found love for pleasure cruises stems from their growing purchasing power.
“Our clients include professional Qataris to high networth individuals and business groups. The citizens see their yacht as an extension of their business, where they invite clients to make deals or just to socialise. Owning a boat and inviting people is a mark of trust,” says Ahmad Inham, the Chief Executive Officer of Al Omar Marine.
“Of course, the yacht culture has been here for long. But it was limited to a small group of the upper segment of the society. Now, with more and more people climbing up in the prosperity ladder, the pleasure cruise segment is poised for a dramatic expansion,” he said.
Inham says there is a growing trend of Qatari families hiring the super luxury yachts for small distance sails. “The demand for leisure boats, different sizes, has seen a sharp increase in recent times, in the light of more projects and residential real estate bordering on the face of freedom in Qatar. With more sea-front properties coming up, Qatar is expected to offer a wide range of options for boat owners present and future,” he said.
The secondary market of yachts is equally vibrant since last year. Most of these consumers are first-time buyers. The trend is the first-time buyers either upgrade them or go for a new vessel after a few months’ use.
“Qatar is going to be the next marine hub of the region, after Dubai. The mood is really upbeat in the market and more and more companies have opened their outlets in Qatar,” he says.
The yacht market in Qatar is very positive. Qataris realise what wonderful facilities they have here on their doorstep, marinas have plenty of available berths for all sizes and bank lending rates are very competitive which makes it easier for potential boat owners to take the plunge, what people are asking for is help and assistance and that is where we can help, says Peter N Divers, Regional Sales Manager, Princess Yachts, Middle East.
“We at Princess Yachts Middle East provide our clients with a full turn key service from supply, transport and delivery of their new or pre-owned boat or motor yacht, which include registration, import taxes, berthing and maintenance services. With plenty of availability Qatar has some of the finest facilities on offer making it a wonderful location to base your boat or yacht,” he said.
The country’s concentration of high net worth individuals is another draw card. According to a recent report by Credit Suisse Research Institute, Qatar has the wealthiest people in the Middle East and North Africa region, with the average wealth per adult standing at a six-fold wealth increase since 2000.
The percentage of millionaire households in Qatar is some of the highest in the world. With more than 14 millionaire households per 100, placing it second globally. Adjusted for purchasing power, Qatar booked an estimated gross domestic product per capita of more than $88,000 for 2010, Forbes said, compared with $47,500 for the UAE. Qatar’s debt per adult had also risen about nine-fold between 2000 and 2010. In 2000, Qatar’s per adult wealth was just $26,381 while debt per adult was estimated at $1,889.
In September 2011, estimates from the International Monetary Fund (IMF) showed Qatar had surpassed Luxembourg as the world’s richest nation in 2010 and was set to pull away with wealth that’s almost twice that of the US.
The phenomenal increase in Qataris pay package has helped the middle class climb the prosperity ladder.
One of the things that were holding back Qatar in terms of market growth was lack of good marinas. But things have changed dramatically in Qatar. It has now got world class marinas. The country is in the process of developing more such marinas. Some are in the process of expanding their existing capacities.
The Pearl-Qatar, which has a sweeping collection of some of the Middle East’s berthing spots, has reported an increase in superyacht berth allocation alongside a new initiative to attract even more luxury yachts to the region.
Porto Arabia Marina, part of The Pearl-Qatar with premier services for large luxury yachts, has also announced an increase of up to 205 berths; adding to the draw of the Middle East’s luxury hub.
Ronautica Middle East, the operation management firm in charge of The Pearl-Qatar, has launched a new initiative which will introduce new competitive berth prices at The Pearl-Qatar marinas, ensuring a fighting edge against other marinas and making room for boats up to 23 feet in the small craft area.
Ronautica Middle East will also oversee a list of prime services on offer to all new-corners, such as yacht sales, maintenance and services, nautical activities and an easy entrance passage for all larger vessels.
Hotel marinas include Marriot, Four Seasons, Ritz-Canton with The Pearl and Lusail offering some 1,500 berths.
Mohammed bin Hussein Al Shaali, Chairman of Gulf Craft, says: “The Qatar yacht market is a very important market to us. The country’s leisure marine market is vibrant with growing demand from private yacht owners and charter brokers in addition to several large waterfront developments, luxury marinas and new berthing facilities coming online in the next few years - including those capable of accommodating the superyacht and megayacht category.”
Qatar has many major waterfront projects in various stages of development. For example, Lusail City, with a number of marinas and as many as 1,500 new berthing slots under development, is expected to become a busy maritime hub and waterfront destination when completed. In the meantime, existing luxury lifestyle destinations such as The Pearl-Qatar along the coast of Doha’s prime West Bay district, already have berthing facilities with more marina facilities planned, which are set to further boost the growth of the country’s marine leisure lifestyle.
The Middle East luxury market will grow by 15 percent this year leading the strong performance of the worldwide luxury market, according to a new study.
Global luxury goods sales are defying initial concerns over Eurozone turmoil and fears of a cooldown in emerging markets, and will exceed Euro200bn ($242bn) in 2012, said Sam a Co, a global management consulting firm in its study.
Bain’s Spring 2012 update to its industry bellwether “Luxury Goods Worldwide Market Study” was unveiled recently at a conference hosted by Fondazione Altagamma, the Italian luxury goods industry trade association.
“The region has opened exciting growth possibilities for key industry players and continues to be a major destination for a wide range of luxury brands. Bain’s latest Luxury Goods Worldwide Market Study reaffirms the robust shape of the global luxury market and likewise underlines the huge growth potential of the Middle East region.” Bain also expects an average of 7 to 9 percent annual increases in global sales to fuel luxury brands’ growth aspirations until the middle of the decade.
Citing the untapped potential of GCC’s luxury market, a survey report released recently by The Boston Consulting Group (BCG) noted innovation is required within the regional market. The companies need to bring back curiosity and excitement among savvy local luxury customers who are frequently inundated with marketing messages. Local service providers can benefit more from GCC resident’s luxury trips abroad. “The luxury concierge providers have not yet met the demand from local GCC travelers for premium services when they head out to locations such as London, Paris and the south of France, especially during the summer months. This is an untapped segment,” the BCG’s key survey report said.
Industry leaders cite the overwhelming response to the 20th edition of Dubai International Boat Show as an indication to the region’s promising yacht market.
The organisers had already had to increase its exhibition space at the Dubai International Marine Club - Mina Seyahi to cater to an unprecedented 750 international and regional exhibiting companies and brands.
With the strong Middle East demand for small and medium luxury, leisure and fishing boats, the show’s external area has also expanded; there will be an additional 30 percent of dry land exhibition space to cater to this burgeoning market.
Following an estimated QRlbn worth of sales as a direct result of the last show, the event is also widening its global reach even further this year. Exhibitors from over 40 countries will be taking part including debut appearances from several new nations.
The Dubai International Boat Show is a vital platform for some of the most impressive and best known superyacht builders to showcase their products. The organisers are expecting a bigger response from the industry for the 21st edition of the show scheduled to be held in March next year. The Dubai Show is a perfect platform for buyers wishing to explore the market and find out more about it, where companies and factories from all over the world would launch their latest designs and concepts of boat and marine services, and view a list of their products from boats and boating equipment and accessories. The Peninsula
