In the world of the superyachts, the balance of power has been subtly shifting recently from the traditional major markets of Western Europe and North America to the Middle East. Nearly half of all wealthy residents in the region are looking to acquire a superyacht as the luxury status symbol.
The stand-out moment came in 2013, when the German shipyard, Lürssen Yachts, delivered to the Middle East the world’s largest motor yacht, Azzam. At 590 feet in length (180 metres) it is a full 57 feet longer than Eclipse, owned by the Russian billionaire, Roman Abramovich. According to news sources, Azzam, the most super of superyachts, belongs to Sheikh Khalifa bin Zayed al-Nayan, President of the United Arab Emirates and Emir of Abu Dhabi.
As well as Azzam, around a third of the 200 largest yachts in the world are now owned by residents and nationals from the Middle East, according to a 2013 market analysis conducted by Boat International.
The Operational Director of the Superyacht Builders Association (SYBAss), Robert van Tol, believes that it’s time for a reassessment of the way in which ownership of superyachts is measured. While Western Europe and North America have been the leading markets, he says that his Association has been looking at, “the penetration percentage of each area – the number of ultra-high net worth individuals (UHNWIs) versus the number of superyacht owners.”
“The 2013 SYBAss Economic Report,” Mr van Tol says, “reveals that the Middle East has the highest ‘propensity to buy’ a superyacht, at 48%. This means that nearly half of the UHNWIs in the Middle East are likely to own or buy a superyacht – higher than anywhere else in the world.”
There does appear to be evidence that the superyacht is once again becoming the most desirable luxury item for UHNWIs. The 2014 ShowBoats International Global Order Book reports that 2014 is the first year since 2009 that there has been an increase in the number of superyachts being built.
More evidence of both the increase in orders and the source of those orders could come to light at the 22nd Dubai International Boat Show 2014, which is aiming to reinforce the UAE’s status as a hub for superyachts. The show, organised by the Dubai World Trade Centre, runs from March 4 to 8 at Dubai International Marine Club, Mina Seyahi.
