Last week, the founder and chairman of UAE-Based shipyard Gulf Craft Mohammed AlShaali received a lifetime achievement award at the Boat Builder Awards in Amsterdam, recognized for his efforts in building Gulf Craft to the globally successful shipyard it is today. Mr. AlShaali’s contributions to The Middle East cannot be understated.
In the same way Mr. AlShaali served as the UAE’s Ambassador to the US, Geneva and the United Nations, the shipyard’s founder has also acted as an emissary to The Middle East leisure marine and boat manufacturing industry to the flourishing sector it is today. How did he turn the unrealistic into a possibility? It all started with a vision.
Born out of his love for the sea, AlShaali, along with his siblings, established the nascent boat building company by selling small fishing boats in 1982 at a time where there was a the paucity of sailing equipment in the UAE, and import costs were unjustifiable. This was a time where the Gulf was only a decade old, and any modicum of marine infrastructure or skilled labor was nonexistent. What happens when there are no local suppliers around? You create your own facilities.
Vertical Integration
Long before the COVID-19 pandemic galvanized prominent Italian shipyards to vertically integrate by acquiring supply chain companies, Gulf Craft has constructed its own complementary industry from its early days. Save for major machinery, every department at the yard from R&D , design and manufacturing to final production is completed in-house. A strategy that was later accompanied by the addition of technological advancements computer aided design (CAD) and computer aided manufacturing (CAM). As the company now buttressed it’s manufacturing operations, it was only logical to venture into the large boat sector, and in parallel, the beginning of Gulf Craft’s international pursuits.
International Expansion
Global expansion is paramount to the growth of any boat builder. Therefore when Gulf Craft launched it’s first luxury motoryacht, Andora 53 in 1992, with British architect John Bennett responsible for her naval architecture, the shipyard was able to penetrate into the European boating market, cementing a strong reputation for its Majesty series, Gulf Craft’s flagship brand. Alongside Europe, Gulf Craft witnessed a successful foray into the Asian and Australian markets after AlShaali commissioned an export market study for the two continents. And in 2019, Gulf Craft made its way into the United States, a market which holds the largest share of boat ownership worldwide.
Attracting clientele from different parts of the globe required a tailored and adaptive approach, and to shift gears when necessary. Case in point: The Majesty 111. The 34.1 meter yacht, whose design was a significant departure from its predecessors, saw Dutch firm Phathom Studios reimagining its look to appeal to a different audience, with success. The yacht was the recipient of many accolades, including a World Superyacht Award nomination in 2024. It was AlShaali’s willingness to acculturate to different markets and adapt when necessary that was a reason for the shipyard’s resilience when tough times beckoned.
Navigating Difficult Times
The financial crisis of 2008 inestimably beset The Middle East leisure marine industry. And Gulf Craft, who maintained a strong market share position in the GCC, took the brunt of it. With the cancellation of domestic orders, it was the boat builder’s robust export strategy that proved useful, relying on established client bases in markets including Asia, Africa, and Russia, and the merits of Gulf Craft’s customisation offerings which have helped the company brave the storms of the crisis.
Similarly, when the COVID-19 pandemic affected the operations of every shipyard around the world, it posed a challenge for Gulf Craft in receiving materials from overseas suppliers. Despite the period of hardship, the brand was able to deliver two superyachts, including the Majesty 175, the largest composite yacht ever built. Meanwhile, on the client-facing front, Gulf Craft was able to reach it’s foreign clientele through the utility of virtual conferences, resorting to video conferencing platforms to host yacht tours, in turn successfully selling the two vessels. As the shipyard reached milestones with construction of yachts larger and more advanced with each passing year, it has not lost sight of the marine industry’s lifeblood – the small boat business,an unconventional feature for large yacht manufacturers.
Cultivating The Small Boat Market
It is often said that for the super yacht industry to thrive, a successful small boat industry must be able to flourish beside it. Essential for the marine workforce – being contractors, mechanics, welders, electricians – who depend on the small boat market during superyacht off-seasons, this market went through a rough period in the UAE, as the lack of licensing for small boats caused devastating effects. In recent years,
Gulf Craft has revived its efforts on small boats production, both in its Umm Al Quwain facility and particularly with its facility in the Maldives, devoted to its passenger boat market and marine tourism sector. Silvercraft, one of Gulf Craft’s lines, specializes in smaller family and fishing boats. The shipyard’s expansive fleet is one of the reasons for its strong presence in boat shows in region and across the globe. In fact, Gulf Craft is a catalyst in the rise of the Dubai International Boat Show.
Propelling The Boat Show Business
Gulf Craft was seminal in the formation of the prestigious Dubai International Boat Show. An exhibitor ever since the Dubai Boat Show was operating out of the Dubai World Trade Centre, shipyard is an instrumental vector in cementing the marine show as one that rivals any in the calendar. Gulf Craft has utilized the show’s reach from the beginning, launching its latest builds and connecting with clients internationally.
A lifetime dedication, Mr. AlShaali’s journey to take Gulf Craft into the heights it has ascended to today was a road of courage, patience and tenacity. Mr. AlShaali’s efforts transcend personal achievements, he has not only played a critical role in forging an ecosystem of boat manufacturing and domestic ownership. Gulf Craft, at one point, accounted for almost 70% of the region’s leisure boat ownership, and still holds a large share today, contributing to the Middle East leisure marine landscape, leading the way for better infrastructure and cruising grounds. With the efforts observed in turning The Middle East into a global superyacht destination today, it is difficult to have foreseen this endeavour without the sheer fecundity of Mohammed AlShaali’s vision.