Maritime Observer Newsletter #12 - End of Year Issue
A look back at all the developments brought by The Middle East leisure marine industry in 2024.
When the threat of piracy in the Red Sea finally waned in January 2023 - after a decade of “high-risk” categorization - security concerns re-emerged in the region following the rise of Houthi attacks, severely disrupting operations of the wider maritime industry, with traffic in the area plummeting as ships rerouted voyages to Africa’s Cape of Hope. The Suez Canal reported a 64% decline in revenue from the year prior. Certainly, this is a situation that affected The Middle East leisure marine industry. Insurance rates skyrocketed, and coverage became harder to secure, making it a challenge for foreign flags to traverse these markets. Furthermore, according to the 2024 SuperYacht Times Gulf Report, the number of superyachts over 30 meters in the Arabian Gulf saw a slight decrease as well, going from 216 vessels in 2023 to 198 in 2024. With these concerns directly affecting pla to inspire superyacht tourism in region, it would have been justifiable to stall plans, a way of circling the runway until the storm is cleared. This was not the case.
Despite the geopolitical challenges, the past 12 months have proved to be eventful for the region’s leisure marine industry, and look no further than Saudi Arabia, which officially opened doors to the 840,000 square meter Sindalah Island during Red Sea Week in late October. The yachting hub is the first offering by mega-destination NEOM, with a marina operating at an 86-berth capacity for superyachts up to 180 meters in length. The launch proved a success, boosting yacht traffic in the Red Sea with 53 yachts in attendance. This year, NEOM also announced plans for the coastal community Jaumur, a residential town centered around a superyacht marina that seeks to build a 1.5-kilometer aerofoil to accommodate the largest vessels.
To complement these projects, the Saudi Red Sea Authority (SRSA) introduced key regulations to streamline regulations and ease passages. In February, SRSA announced a six-month temporary entry regime for foreign vessels, while in the second half of the year, SRSA promulgated further regulations for Saudi and foreign yachts - including the first-ever yacht tourism licenses, an operator license to Jeddah Yacht Club and Marina - which launched its membership club in June - and chartering licenses to several yacht agents. Several domestic and international companies received these licenses, including Hill Robinson, JLS Yachts, and Faisal M. Higgi & Associates. Meanwhile, superyacht services agency BWA Yachting also announced its expansion to The Kingdom.
On the other side of the Red Sea, Egypt has made developments of it’s own. Alongside the return of the Egypt International Boat Show in July, the Suez Canal Authority (SCA) instituted a 50% reduction of transit fees for any vessel under 300 tons passing the canal, In October, The SCA announced further discounts on transit and mooring fees for yachts transiting the Red Sea, providing incentives for yachts over and under 300 tons.
Over in the UAE, three boat shows took place, including the 30th edition of the Dubai International Boat Show (DIBS), - which signed a long-term deal with its home of Dubai Harbour. In November, The Abu Dhabi International Boat Show (ADIBS), and the first Qatar Boat Show found participants from international shipyards and boat builders, who have brands announced their permanent expansion to the Gulf.
Ferretti Group opened new dealership branches in the UAE and Oman, while BehneMar Yachting became the official authorized sales agent for The Italian Sea Group in The Middle East. Meanwhile, Heesen Yachts appointed a new regional agent Hisham Abu Shaakra as the Middle East market agent. Superyacht specialist service company West Nautical opened its first office, in Dubai’s Business Bay, providing superyacht services, including sales, crew, management, and charter services. To address the increasing demand of berthing in Dubai, D-Marin’s Business Bay Marina saw a rebrand after it was acquired by development group OMNIYAT, now known as Marasi Bay Marina. In September, D-Marin launched the company’s fifth marina in the UAE, Port De La Mer, located on the coast of La Mer’s north peninsula.
UAE-based shipyard Gulf Craft underwent a corporate restructuring in August when it announced the appointment of CEO Yannis Haidis. In the same month, the builder partnered with the Dubai Maritime Authority to facilitate smoother procedures for maritime vessel registration and licensing for Gulf Craft clientele, utilizing digitization to improve the yachting experience in the region. At the Qatar Boat Show, the luxury builder announced plans for a new 108,000-square-foot facility in Ajman, UAE, to address the growing need for superyacht services in The Middle East.
Meanwhile, the launch of refit facilities came courtesy of Sunreef Yachts, which opened a manufacturing facility in Ras Al Khaimah in March 2024, and from the Qatar Free Zones Authority, which partnered with Qatar Navigation to open a new shipyard at Qatar’s Marsa Port. The facility is set to provide refits, modifications, repairs, and exterior upgrades for luxury yachts, naval ships, and wooden boats.
This was 2024. a year that introduced new boat shows catered to each market, there was further harmonization of rules, construction of new refit facilities, an increased commitment to sustainability, continued investment in infrastructure, and the addition of more major sporting events. If the progression achieved throughout the past twelve months reflects where the Red Sea and The Gulf aim to be headed in the coming years as these locations mature - the leisure marine industry in the Middle East is proving to be a lucrative destination in the years to come.