Financing brings yacht ownership within reach

Speaking at this week's Dubai International Boat show, Gulf Craft executive manager Erwin Bamps said that several banks have already entered the market in a relatively limited way, but there are indications that lenders are becoming more willing to ease the restrictions originally imposed on borrowing limits, deposits, and repayment periods.

"Buyers had previously no alternative but to find the full purchase price, but even the restricted availability of finance is now bringing boat-ownership within the reach of many more people," he commented.

"It also enables them to fund bigger and more luxurious boats than they could otherwise afford to buy on a full cash price basis.

"Having financing availability at all is a great step forward, but ideally the entire buying process should be just as easy as buying a car - where financing, insurance, registration and so on can all be concluded virtually at the same time and with a minimum of delay or complication.

"We are optimistic that once the participating banks have tested the market and satisfied themselves that boat financing is a very viable proposition, they will ease the restrictions and make it more accessible to prospective owners, fuelling further growth of the Gulf's marine leisure industry.

"Other institutions are also investigating the potential of yacht financing and as more players enter the market, so competitive pressures will lead to less restrictive requirements - much as has happened with cars."

Bamps also cited the existing administrative requirements for registering and licensing new vessels and VHF radio equipment as a further complication in the ownership process.

And an intermediary dealer has to be in place so that funding can be structured in such a way that the builder can receive progress payments during construction, with the finance house settling on behalf of the owner on delivery.

"We are optimistic that once the participating banks have tested the market and satisfied themselves that boat financing is a very viable proposition, they will ease the restrictions and make it more accessible to prospective owners, fuelling further growth of the Gulf's marine leisure industry," said Bamps.

Gulf Craft Inc is the Middle East's leading producer of luxury yachts and one of only a handful in the world with the capability of building vessels more than 100-feet in overall length.