Why luxury yacht builders are turning to the UAE to manufacture for global markets

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Gulf Craft reports rising global demand as Sunreef expands UAE production and exports.

Dubai: The UAE is strengthening its position as a global manufacturing hub for luxury yachts, with home-grown builder Gulf Craft reporting rising international demand for its UAE-built vessels, while Poland-founded Sunreef Yachts expands its production facility in Ras Al Khaimah to serve export markets across Europe, Asia and the Americas.

Speaking, Gulf Craft Group CEO Erwin Bamps said perceptions of UAE manufacturing have transformed significantly over the past two decades.

“Twenty years ago, when we attended the world’s leading yacht shows, we also had to act as ambassadors for the Middle East, its manufacturing industry and Dubai,” he said.

“Today, people arrive with high expectations simply because you come from the UAE. If you live and work in the Emirates, you have a story to tell.”

His comments come as luxury yacht manufacturers continue to expand their investments in the UAE, underscoring the country’s growing reputation as a centre for high-value manufacturing and export-oriented production.

Manufacturing shift

Bamps said one of Gulf Craft’s biggest achievements in recent years has been expanding its global footprint by strengthening its international dealer network and reaching new overseas markets.

He said the company’s yachts are now sold to customers “from Mexico all the way to Australia”, reinforcing Gulf Craft’s reputation as a global engineering and manufacturing brand.

Bamps added that the company is well positioned to support the UAE’s ambition to become a hub for advanced manufacturing.

“I believe the UAE is attracting manufacturers to establish and grow their operations here,” he said.

“It is not aiming to compete in high-volume, low-cost manufacturing. Instead, the focus is on creating high-value products and delivering greater added value.”

Export focus

Both Gulf Craft and Sunreef Yachts are increasingly using the UAE as a manufacturing base to serve international markets.

Sunreef said the country’s strategic location between Europe, Asia and Africa has made the Emirates a key production and export hub for its global operations.

The company has also increased spending on UAE-based suppliers by more than 50 per cent year on year, while continuing to localise manufacturing, logistics and technical services.

For Gulf Craft, international demand has remained resilient despite recent geopolitical uncertainty.

Bamps said the company continues to receive enquiries from customers across global markets while steadily expanding its international dealer network.

“We see that reflected in our growing dealer network. Clients are contacting us from all corners of the world,” he said.

How Gulf Craft builds its luxury yachts

According to Bamps, building a luxury yacht is a meticulous, largely hand-crafted process that can take anywhere from several months for smaller vessels to up to 18 months for larger models.

The process begins with the design and construction of a custom mould for each yacht model, a stage that can take as long as six months.

Once the mould is complete, technicians apply multiple layers of fibreglass and resin to form the hull. Each layer must cure naturally before the next is added, making the curing process one of the most time-intensive phases of production and one that cannot be accelerated.

Once the hull is complete, the yacht moves through a series of specialised workshops where engineers install the engines, generators, piping systems and internal bulkheads.

At the same time, skilled craftsmen produce bespoke furniture, cabinetry and wall panels using marine-grade plywood and premium wood veneers before fitting them into the vessel.

Many yachts are sold before construction is completed, allowing owners to customise interior layouts, materials and finishes while the build is still in progress.

Depending on the size and complexity of the vessels under construction, Gulf Craft’s shipyard can produce around 20 to 30 luxury yachts a year, with output increasing for smaller models.

Technology investments

Gulf Craft said it is integrating artificial intelligence into its operations, although Bamps stressed that the company’s immediate priority is to enhance design and engineering processes rather than replace workers.

“It’s not about replacing anything; it’s about optimising and accelerating design and engineering processes,” he said.

Sunreef Yachts is also investing in AI-supported operational systems and sustainable manufacturing technologies, including solar integration, to improve efficiency across its UAE facilities.

Global ambition

Gulf Craft expects international demand for its luxury yachts to remain robust, with Bamps saying the company continues to see strong interest from overseas customers.

As part of its global expansion strategy, Gulf Craft is also extending its manufacturing footprint beyond the UAE, including through a new facility in the Maldives that will serve regional export markets.

Reflecting on the impact of the recent US-Israel-Iran conflict, Bamps said the biggest challenge during the early stages was managing logistics and keeping supply chains moving.

“The first few days were really about logistics. We had to make sure shipments could continue and routes remained open,” he said.

Despite the geopolitical uncertainty, Bamps remains optimistic about the outlook, noting that Gulf Craft has continued to receive enquiries and orders from customers worldwide without any significant slowdown in demand from its core markets.

Sunreef expands UAE operations

Polish yacht builder Sunreef Yachts said last month that it has invested more than Dh54 million in industrial infrastructure in the UAE over the past two years as it continues to expand its operations in Ras Al Khaimah.

The company now operates a 65,000-square-metre yacht production facility at RAK Maritime City, complemented by a 15,000-square-metre industrial site dedicated to furniture manufacturing, woodwork and stainless steel fabrication.

Together, the facilities enable Sunreef to complete a greater share of its production process within the UAE, improving quality control while shortening manufacturing timelines.

Sunreef currently employs more than 1,300 people representing over 40 nationalities in the UAE and plans to expand its workforce to around 2,000 employees as production capacity grows.

The shipyard is currently capable of producing more than 50 yachts a year, including models from its Ultima range as well as its sailing and power catamarans.

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