The yacht market has seen steady growth over the past few years due to the increasing demand for luxury yachts in Saudi Arabia. The Saudi Arabia Yacht Market is projected to reach USD 721.81 million by 2030 from USD 471 million in 2022 owing to increasing wealth, globalization, and changing lifestyle preferences coupled with upcoming luxury yacht clubs in Saudi Arabia. Moreover, due to increasing environmental concerns, customization, and low-interest rates, the market is expected to grow at a CAGR of 6.29% for the forecast period between 2023 and 2030. The market has become more environmentally conscious in recent years, with many yacht manufacturers focusing on creating more sustainable and eco-friendly yachts.
Furthermore, many people, especially millennials, are spending on luxury experiences, and yachting offers a distinctive and opulent travel experience that is unmatched by other modes of transportation. With the addition of navigation and communication equipment like GPS, radar, sonar, and satellite communication, many advanced yachts are now more tempting to customers. In addition, government initiatives have also contributed to market growth for instance, in an effort to improve the promotion of tourism, Saudi Arabia has introduced the "Ebhar" platform, a single platform to expedite the entrance, movement, and sailing of tourist yachts around the country. The platform was introduced in February 2023 at the Jeddah Yacht Club by the Saudi minister of transportation and logistics, Saleh Al-Jasser.
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Rich Lifestyles boosts Luxury Yachting
With more people seeking unique experiences and adventurous lifestyles, yachting has become increasingly popular to explore the oceans and waterways. Additionally, with the benefits of customization and unlimited sailing experience, people consider yacht purchases as an investment opportunity. Therefore, factors such as better economic conditions and rich lifestyles are driving the market for yachts in Saudi Arabia.
Luxury yachting is becoming a popular trend among marine enthusiasts who enjoy cruising along perfect beaches and turquoise waters. In line with this, Saudi Arabia is planning to build a super luxury yacht club on the Red Sea as part of its Vision 2030. The club will be offering multiple resorts, hotels, cabana lounge and pool decks. The first phase of the club is set to be completed in 2024. This initiative will boost the luxury yachting experience over the years.
Growing Interest in Sustainable Yachting
Sustainable yachting practices are becoming more popular as people become more ecologically aware. As a result, there is now a higher demand for environmentally friendly products including electric propulsion systems and biodegradable cleaning supplies. Yachting has the potential to attain an unmatched level of luxury in a sustainable way with cutting-edge clean technology. Therefore, due to the increasing focus on sustainable products, yacht manufacturers focus on innovative technologies, smart energy management, and green construction to improve the onboarding experience of the customers.
New Upcoming Megacity- NEOM to give a new Lifestyle Experience and Modernized Living
Saudi Arabia’s planned megacity project- NEOM is targeted to be completed by 2030 which will offer a next generation and enhanced liveability experience to the residents and to the commuters, being 95% close to the natural landscape having beaches and mountains together. NEOM’s Sindalah inland is set to become a luxury destination offering beach clubs, golf course, sports club. The Mediterranean Sea will give and easy access to several yachting destinations through the Suez Canal. The destination is set to create a new season for superyachts which is an ideal alternative for yacht owners who want to spend the winter in an easily accessible location.
Impact of COVID-19 on Saudi Arabia Yacht Market
Due to the sudden outbreak of the COVID-19 pandemic, many markets saw several setbacks including the Saudi Arabia yacht market as participation in recreational activities was restricted. Halt in transportation, shortage of raw materials, slowdown of on-site work, and decreased demand for luxurious items have negatively impacted the Saudi Arabia Yacht market. Moreover, the economic slowdown and negative impact on the disposable income of consumers witnessed a major downturn.
Impact of Russia-Ukraine War on Saudi Arabia Yacht Market
The Russia-Ukraine war has contributed to global economic instability, and it has led to disruptions in trade and investment. This has shown a ripple effect on the Saudi Arabia yacht market, as wealthy individuals have become more cautious about spending money on luxury goods like yachts during uncertain times. Moreover, increasing geopolitical tensions and shift in travel patterns have affected the Saudi Arabia yacht market. Furthermore, supply chain disruptions and the availability of raw materials are considered major challenges for market growth.
Report Scope
“Saudi Arabia Yacht Market Assessment, Opportunities, and Forecast, 2016-2030F” is a comprehensive report by Markets and Data, providing in-depth analysis and assessment of the current scenario of the yacht market in the Saudi Arabia, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, COVID-19 impact, and Russia-Ukraine war impact, opportunities, and forecasts (2023-2030). Additionally, the report profiles the leading players in the industry mentioning their respective market share, business model, competitive intelligence, etc.
