Manufacturers vie for share of Middle East market

by IBI Magazine/Michael Verdon on 20 Mar 2007 A number of leading European and US boat manufacturers have signaled their intentions to expand sales in the Middle East region in the near future. In fact, if the amount of press releases generated by this year's Dubai boat show are any indication, boat exports to the emerging Middle East market should grow significantly in the next year.

Companies like Azimut and Majesty Yachts had global launches of new yachts in Dubai, while others like Sunseeker, Pacer, Donzi, Jeanneau and Nordic Star had 'Middle East' debuts at the show. Clearly, these companies are jockeying for position in what many expect to be a fast-growing market.

ART Marine, which distributes the Azimut, Benetti and Atlantis lines, announced today that they sold all 17 boats on display at the Dubai show, including the 103ft Azimut flagship launched at the show last Monday. Show organisers, sending out a constant flurry of good-news press releases on behalf of exhibitors, also said in a statement that they expected exhibitors to do over US$100,000 million in sales.

Others issued their own press releases saying they were establishing a long-term presence in the Middle East.

'Brunswick is making a big-time commitment to the Middle East market as we have been impressed with the marine infrastructure development in the region,' said Haidar Wardeh, managing director, Brunswick Middle East, in a statement. 'Our non-US revenues have increased tremendously over the past five years, growing at twice the rate of our US sales. We intend to sustain this global growth by increasing our presence in different emerging markets such as the Middle East.'

Wardeh said the increase in infrastructure development for the marine industry, and large-scale construction of marinas and marine-themed residential and commercial parks, was the 'impetus' for Brunswick's increased presence. He pointed to UAE's The Palm Jumeirah island and Dubai Marina, and the Pearl City in Qatar as examples of the addition of thousands of slips within several years. The Dubai Marina will also open 500 new berths across five marinas, including the Dubai Marine Motor Yacht Club (DMMYC), which will be associated with global yachting events such as the America's Cup.

Azimut, with its longstanding presence in the region, has a jump on competitors. 'Since 2000, we have seen tremendous development in this region, thanks to our patnership with ART Marine,' said Paolo Vitelli, Azimut-Benetti chairman, at the launch of the 103S. Vitelli told IBI that the Gulf area, although representing less than 10 per cent of its total global business, is growing much faster than mature markets like North America and Europe. 'Our global emerging markets represent 16 per cent of our annual turnover,' said Vitelli. 'Four years ago, they represented only four to five per cent.'

Vitelli said that Azimut is in a 'very primary' position in the Gulf region, which he called a 'brilliant market'. Vitelli said the region represented about €4.2 million in sales in 2003, and that number will rise to about €60 million this year.

Fairline Boats, a UK competitor, announced its plans at the Dubai show to set up a dealership in Dubai. 'This show has gone from strength-to-strength in recent years,' said Bryan Jones, marketing manager, in a statement. 'As the market has developed, our need for a dealership in the region has intensified. DIBS seemed like the natural location to unveil our plans for the Middle East.' Fairline showed its flagship yacht, the Squadron 74 Custom, which retails for about US$5 million at the show.

UK-based Sunseeker also had a strong presence in Dubai, and showed four express yachts, including its new Predator 82. Ali Al Jafla, managing director of Sunseeker Middle East, said its 'eye-catching looks' made it a 'showstopper'.

In fact, there were any number of 'showstoppers' in Dubai, both foreign and domestically built. And virtually everyone interviewed by IBI believes that this would be a quick-growing market in the next three to five years. In the meantime, the rush to enter the Middle East seems to be turning into a publicised race where just about everyone sees themselves as a potential winner.

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