UAE-based Gulf Craft, one of the world’s leading manufacturers of luxury yachts, has entered a dynamic new growth phase that will expand its production capacity, work force and export market penetration.

 “In a little over two decades, the company has evolved from a small boat-builder to a major player in the international luxury yachting market,” says its chairman Mohammed Al Shaali.  “We have developed a name and product in the market – the Gulf in general and the UAE in particular – and we have become a centre for marine business. Today the UAE is well known as a boating centre due to the leadership provided by Gulf Craft. As an industry we have contributed in developing other related industries.”
Over the past two years the company has invested Dh30 million ($8.1 million) in its manufacturing facility located in Umm Al Qaiwain. An 80 per cent assembly area expansion is underway at its design and construction facilities in Umm Al-Qaiwain that already extend to 11,600 sq m of covered workshops on a total site area of 43,000 sq m.
A new 150-tonne travel lift and is now operational, creating fast and efficient transfer of vessels from the building stocks to the water via a newly completed launching bay.
In the assembly area, a new 30-tonne hoist complements the existing array of gantry cranes and automated machinery that take care of the heavy lifting.
New paintwork and tooling facilities will follow soon along with the latest computer-controlled engineering systems, while extensive upgrades are also taking place at the company’s repair yard in the Maldives.
“We plan to set up two new plants over the next three years, including one in Dubai Maritime City,” says Al Shaali. “Gulf Craft currently has three manufacturing yards and a maintenance facility. With two more manufacturing facilities we will be able to triple our production capacity by 2008. Our current combined manufacturing capacity is 270.”
Al Shaali said the market was growing with a lot of waterfront developments taking place both in the region and worldwide, all of which would create a bigger and more competitive market. At present one third of Gulf Craft’s production is sold in the UAE market, another third goes to other Gulf states and the remainder worldwide.
 The company is now focusing on two markets - South Europe and Australia. The market Down Under is the second biggest for the company where it sells 50 vessels every year. “We entered Australia three years ago and within a short span we have established a good name and base for ourselves,” Al Shaali said.
Emerging markets for Gulf Craft include Asia, mainly India, Malaysia and Sri Lanka, where the tourism industry is rapidly developing with a number of hotels and marinas coming up. 
Al Shaali contends that Gulf Craft products are very price-competitive because of the UAE’s business-friendly economic structure and also because the company maintains “exceptional standards of quality that elite yacht owners insist on having.” 
Adds the chairman:  “Worldwide we are among 30 manufacturers building to high standards and among a handful of yards in the world with the capacity to produce vessels of more than 100-ft overall length. We manufacture yachts ranging from 30 to 150 ft.
“Locally there are only 3-4 manufacturers of high-standard yachts but our main competition is from European manufacturers.  We are able to offer prices 30 per cent below the international level due to the cheap labour available here and tax-free status.”
Business has been very good over the past 4-5 years. Worldwide the luxury yacht industry is doing very well, particularly in the US, Europe and Japan and people are now going in for bigger and bigger yachts. Facilities have also become much better and the components going into the construction of the boats are also better.
Gulf Craft witnessed last year a 50 per cent growth over 2003 and this year, Al Shaali says, it expects a 30 per cent growth.
“Our plans include expanding into complementary industries.  We are looking at stainless steel, marine air conditioning and yacht interiors — all aimed at reducing costs on stocking.”
The company imports almost all the products that go into manufacturing a luxury yacht. It has over 4,000 suppliers worldwide and stocks around 40,000 different products.
The company is also planning to go public next year, which will ensure prosperity and continuous growth for the company, Al Shaali says.
Investment in new technology is matched by corresponding growth in staff numbers, which will reach 600 by the end of this year, up by one-third over the current figure.
Among them are design and engineering experts recruited from specialist shipyards in Europe to help keep pace with surging demand for the entire range of Gulf Craft vessels, especially in the super-yacht category.
“As well as investing heavily in our construction facilities, we are also expanding our distributor network and now have new representation in Spain, France, Italy, Croatia, and New Zealand,” says Al Shaali.
“This latest phase in our growth will consolidate that transformation and give us the platform to pursue our goal of becoming an even more potent force in high-end global markets where quality, craftsmanship, and individuality are the defining characteristics.”