Dubai-based private equity firm Abraaj Capital has acquired a 50 per cent stake in Turkish luxury-yacht manufacturer Numarine, as global demand grows in the $25 billion (Dh91.81bn) market for recreational boats.
Abraaj, the largest private equity firm in the Middle East and North Africa, will partner Numarine Chief Executive Officer Omer Malaz, who founded the company in 2002.
The investment is Abraaj's second in Turkey and third in the marine business. Last year, it bought part of Acibadem, the only healthcare provider listed on the Istanbul exchange. Abraaj also owns stakes in Dubai-based luxury-yacht distributor ART Marine, and Gulf Marine Maintenance & Offshore Company, which serves the oil and gas industry.
"We are delighted to partner with Omer and Numarine, and believe that the company is extremely well positioned to benefit from the growing demand for high-quality, excellent-value motor yachts," said Abraaj Managing Director Mustafa Abdel-Wadood.
Global demand for recreational boats, which grew 11.4 per cent per year between 2000 and 2006, is expected to rise further, with Turkey's market share expanding as it matches or exceeds comparable international makers in technology and style at more competitive prices.
Last year, Turkey became the world's seventh-largest producer of luxury yachts.
The Gebze-based company produces three sizes of yachts: 55 foot (16.8 metres), 78ft and 102ft, and plans to introduce more sizes. Numarine yachts are produced with vacuum-assisted infusion technology and state-of-the-art materials, resulting in light, strong, fast and luxurious vessels with high price-quality ratios.
"The opportunities for Numarine are significant, both in our core Turkish market and internationally," said Malaz. "Numarine's combination of advanced technology and personal service makes us a compelling option for many yacht buyers."
The company is looking to tap growing markets in the Middle East, Asia and Eastern Europe. "The leisure and luxury marine market has demonstrated positive, long-term growth through economic cycles," Abdel-Wadood said. "We expect Numarine to establish itself quickly as a brand of choice."
Demand for yachts in the Middle East has soared in the past few years, with the booming region now accounting for eight per cent of global owners.
The numbers
$25bn: Worth of the global market for recreational boats and luxury yachts
102ft: The size of the largest yachts produced by Turkey's Numarine
11.4%: Global growth in demand for luxury yachts between 2000 and 2006
8%: Of global luxury yachts are owned by people in the Middle East