The United Arab Emirates is one of the strongest economies in the world due to its constant development, state-of-art infrastructure, multiculturalism, and many others. Another important factor is its amazing locations like the city of Dubai, Abu Dhabi, Sharjah serving as a passage or transit point to Africa, Asia, Middle-East, Europe, and Russia for almost three centuries.
The Emirates boasts of having the wealthiest population in the world, and it is estimated that private wealth in the nation will continue to grow at a rate of 7.4% per year to Dh 2.94 trillion over the next five years. The families are owners of yachts and boats, and the great thing in Dubai is that the ownership of yachts and pleasure boats is available not only to the super-rich but is enjoyed by many resident and expatriate population in the country.
Are you interested in opening a yacht rental business in the Emirate of Dubai? Read this article to know more about the procedure.
Yacht Rental Business in Dubai
Before registering your business in Dubai, decide on what services do you want to offer to your customer? Yacht Rental? Tourism Service? Water Guide to assist the clients? Coming to the crux of the matter, the procedure for registration of yachts above ten tones is set out in the UAE Maritime Law No 26 of 1981. As the law currently stands, only a UAE national or UAE national-owned business is permitted to fly the UAE flag on this yacht and to lease this yacht for commercial charter. This means that any foreign-owned vessel wishing to carry out charter business in the UAE has to be at least 51% owned by a national of the Emirates and leads to inquisitive situations where a yacht registered in the UAE by a foreign resident is not permitted to fly the UAE flag and instead must fly the flag of that resident’s country.
The authority which looks into the registration of your yacht rental business in Dubai is the Dubai Maritime City Authority (DMCA). The DMCA took over this function from the Federal Transport Authority - Land & Maritime (“FTA”) in Dubai further to the memorandum of understanding signed between the two authorities in early 2017. The FTA will remain the responsible authority for the registration of pleasure boats in Abu Dhabi and other emirates. As for Dubai, the registration system has been developed to ease the procedure and to reflect Dubai’s status as an international marine hub.
Under Dubai law (Executive Council Resolution No. 11 of 2013), pleasure vessels (yachts) are broadly placed into two categories: motorized and non-motorized. Non-motorized vessels include sailing, rowing, and other similar vessels. Motorized vessels are further segmented as and include personal watercraft and similar vessels; vessels less than 12 meters in length; vessels between 12 and 24 meters in length and vessels more than 24 meters in length. The chief differences are in the technical requirements presented to different types of vessels and the registration fees.
To register a yacht rental business in Dubai, you need someone who is well-versed with the legal obligation related to this business and can make the procedure hassle-free. We at Commitbiz are here to help you out. Right from business registration to office space, we cover it all. Our business setup consultants in Dubai have years of experience in this field and can make it convenient and cost-effective for you. Contact us today for more information.