Superyacht owners flock to UAE on Golden Visas. Here is why

Long-term residency scheme for yacht owners yet to cause a spike in boat sales

Dubai: The Golden Quay to Abu Dhabi initiative, which grants eligible yacht owners the chance to be nominated for a 10-year UAE Golden Visa, is undoubtedly attracting new residents to the UAE.

However, according to yachting experts at the Dubai International Boat Show, the scheme is yet to cause a spike in boat sales.

According to Abeer AlShaali, Deputy Managing Director at Gulf Craft, the Golden Visa residency scheme has been great for the yachting industry overall.

“Owning a yacht is part of that experience. It is, of course, the incentive to come here, to have the yacht, to have a boat, to have a home, and to experience what the UAE has to offer, which naturally leads to buying a boat. Therefore, for us, it’s a great positive step by the government that could only help sell yachts,” explained Abeer.

The Golden Quay scheme, which was launched by the Department of Culture and Tourism – Abu Dhabi (DCT Abu Dhabi) in collaboration with the Abu Dhabi Investment Office (ADIO) and Yas Marina last year, is yet to see a major spike in boat sales.

She added, “The original Golden Visa scheme has created the environment for people to come in and settle in the UAE, which has (in turn) led to an increase in yacht purchases. But we’ve not noticed a spike since that (the DCT) announcement.”

Gulf Craft, a company that manufactures fibreglass boats and yachts, ranging from 20 feet runabouts and sportfishing boats to 135 feet motor yachts, did see an uptick in demand when the first Golden Visa scheme was announced since its launch in 2019, according to Abeer.

What does the future hold for yacht sales in the UAE?

Over 2024, the State of Yachting report from SuperYacht iQ recorded 195 new yacht sales, and 305 used yacht sales over 30 metres. These numbers indicate a continued decline following the record year of 2021. However, this downturn may have levelled off, as the figures for 2024 are only about 3 to 5 per cent lower than those of 2023, stated the report. However, the yachting industry, which will convene for the Dubai Boat Show starting February 19, is optimistic about the potential for a significant uptick in sales by 2025.

“The pandemic was, unfortunately, a disaster from a human point of view. But from a business point of view, it definitely brought the (yachting) business back to the Golden Age,” Jad Zakkak Migliorini, Chief Marketing Officer of Azimut Yachts, told Gulf News.

He added. “The market is getting back to normal. The fact that you can plan production, knowing that your portfolio goes all the way up to 2027 or 2029, gives us some stability to look at this more positively.”

Speaking on the residence visa schemes for yacht owners, Migliorini said, “The yacht industry is very unpredictable, yes. This sort of extra help definitely gives potential people a good reason to move to another place. I can confirm that this destination is growing a lot, not only for locals but also for expats. So, this can definitely be helpful in this respect.”

Robust sales for 2025

Meanwhile, Abeer from Gulf Craft said, “Our forecast is quite good. We’re going into the Dubai Boat Show with 18 boats on display, including eight new product launches. We cater to everything, from the fisherman to the luxury super yacht owner, so we have something for everybody. From that perspective, we are expecting great sales within the next year, and our order books are already full.”

Alison Vassallo – a partner at Fenech and Fenech Advocates from Malta, also said ongoing regional geopolitical tensions are not expected to impact yacht sales this year.

She said, “The market remains strong. Many American owners are still purchasing yachts in Europe and bringing them over. This trend continues. I expect the market to remain resilient despite global uncertainties.”

Alison heads the Yachting Department and works within the law firm’s Marine Litigation Department.

Will Dubai launch similar GV scheme?

The General Directorate for Identity and Foreigners Affairs in Dubai, which will be participating at the Dubai Boat Show, will be showcasing services that support the yachting sector and maritime community.  These include the Mobile Marina, Multiple-Entry Visas for Yacht Crew, the Work Bundle, and Platform 04 – a digital initiative.

“Additionally, the Dubai Residency Community Network will be offering flexible solutions for investors, yacht owners, and entrepreneurs, ultimately enhancing their residency and mobility experience within the emirate,” GDRFA-D said in a statement on Monday. However, it is yet to be confirmed if it will launch a residency scheme similar to the Golden Quay to Abu Dhabi initiative.