OBSTACLES & SOLUTIONS: THE CHARTER MARKET IN THE UAEJonathan Hind, Managing DirectorFebruary 2019

INTRODUCTION TO THE UAE CHARTER MARKET

CHARTER CHALLENGES

POTENTIAL BENEFITS

SUGGESTED ACTIONS

OBSTACLES & SOLUTIONS: THE CHARTER MARKET IN THE UAE

THE UAE CHARTER MARKET

THE UAE CHARTER MARKET

Perfect climate

The UAE should be

seen as a HUB or as

a winter home

Location is perfect for

transiting yachts

Growing yachting

infrastructure and

facilities

Offers potential

financial benefits

THE UAE CHARTER MARKET

OBSTACLES: CHARTER CHALLENGES

PERCEIVED COMPLEXITIES

LEGISLATION

LICENCES AND PROCESSES

IMPORTATION TAXES, VAT, DO THEY APPLY?

INFRASTRUCTURE FOR SUPERYACHTS

MOVING BETWEEN EMIRATES

POTENTIAL BENEFITS: ECONOMIC

YACHT SPEND

• A 70m yacht will spend in the region of USD 4 million a year

» Insurance, Crew, Maintenance, Interior and Deck Equipment, Data and Communications

• This can double if the yacht is used

» Fuel, Food, Perishable Goods, Additional Crew, Additional cleaning, additional Maintenance

• Owners’ additional spend can far exceed yacht spend

CHARTER SPEND

• Additional spend on top of charter fee is +15-25%

» Berthing, Fuel, Food, Entertainment

• Shore-based spend can equal charter value

» Jet/ Helicopter transfers, Entertainment, Hotel nights, Entourage expenses, Shopping

• Most charters are 1 week in duration, possible 9 month season in the UAE

Encourage a yacht to the UAE to charter and the economy will benefit from

both the yacht spend as well as the additional spend of the charter guest

SOLUTIONS

1: CLEAR PROCESSES

Cruising Permit > Crew Visas > Charter Licence

2: UNIFIED APPROACH WITHIN THE UAE

Free movement between Emirates

3: UNDERSTANDING OF TAX IMPLICATIONS

Clarity over charter VAT

Professional yachting companies can then encourage owners,

attract yachts to the UAE and in turn facilitate charters, adding

prestige and value to the UAE

LONDON | MONACO | NEW YORK | MIAMI | DUBAI | HONG KONG

BEVERLY HILLS | MOSCOW | PALMA | ATHENS | SINGAPORE | SHANGHAI | TOKYO