In the report on exporting to the Middle East that we recently compiled for the BMF, we presented an optimistic view of prospects in the Gulf states despite the current recession. In light of the standstill in interest repayments on some £36bn of dept announced by the Dubai government, is it now time to revise that opinion?

In a word, no. Not really (OK – two more). No one denies that in terms of property development they were doing too much, too fast, and the fact that they are having a problem with cashflow in a time of depressed demand is a surprise to no-one. In fact, the only reason that the financial markets are currently spooked is that Abu Dhabi hasn’t stepped in with a rescue package, and maybe given that the latter was always much more conservative when it came to development that shouldn’t be such a surprise either (in retrospect).

However, from both a leisure marine and a broad perspective, there is no reason why Dubai shouldn’t resume growth over the next year or two, albeit at a less breakneck pace. Consider:

1. Property booms and busts come and go. The particular example that comes to mind right now is Canary Wharf, in London’s docklands. This is the classic case of a development in a seemingly remote location that appeared at the time over ambitious and got hit by a property bust that wiped out many of its original investors when it went bankrupt in 1992. However, it was bought up by a (mostly) new set of investors in 1995 and benefited from a post recession rising property market linked to a demand for good quality space. In 2007 its landmark HSBC tower sold for £1.1bn! The moral of this story is that large-scale property projects often get ahead of themselves with disastrous consequences for the original investors, but it doesn’t mean that they are a bad thing in themselves, and can often be ultimately successful.

2. Dubai is still a great location both for tourism (warm winter climate, proximity to Europe) and business (beneficial tax regime, good existing infrastructure, midway between Europe and the Far East, growing middle class). This gives it good potential for leisure boating once people feel that their incomes are no longer in danger and begin to spend again on foreign holidays (Europeans) and luxury goods (local population).

3. Dubai’s development plans were so over-the-top that even if they are drastically scaled back over the years ahead, they will still represent a healthy programme by anyone’s standards, adding new hotels (probably rather more affordable) and marina berths.

Other factors include the prospect of a long-term weakening of the US dollar boosting its attractiveness to European holiday-makers and businesses looking to locate there, even if it will dampen local demand for sterling and euro-denominated imports.

To sum it all up, most of the factors that made Dubai an attractive place for exporters looking to sell boats and leisure marine equipment remain in place. The growth may have slowed, but it remains full of potential over the long term. Exporters should continue to develop their relationships in the region for, as we said in our report, it can take a long time to earn the trust and acceptance of local buyers and starting the process now may well pay healthy dividends a few years down the line.

We are very pleased to have started working with Walcon Marine, the leading builder of marinas both in the UK and overseas. They handle a large number of projects each year and recently completed the marina at Portland developed by Dean & Reddyhoff as part of the venue for the 2012 Olympics. Walcon exhibited at METS this week and will also be at LIBS in January.

It’s nice to sit down, even just for ten minutes, at METS, as the changes to RAI conference centre means that the distances that have to be covered between the eleven halls are even greater than before. Yet despite this being hailed as the largest METS ever there are still some gaps between stands which we guess are caused by last minute no-shows, and there are also spaces to be seen in the superyacht section, but these have been tastefully filled in with additional seating. Some firms, it seems, are still amending their budgets almost daily and every now and again something has to be sacrificed.

The atmosphere here is workmanlike without being frenetic. The general feeling among the journalists is that there isn’t that much this year that’s new for the show, a by-product of the slowdown by many firms in product development. However, given the sheer scale of the event they seem confident of finding more than enough to write about, even if the kit isn’t always necessarily being shown for the first time to the public this week.

For the manufacturers, we get a sense that this show is all about keeping relationships in good health and laying the groundwork for orders that they hope to see at some point in 2010. Market conditions are still seen as being very choppy, and no-one is taking anything for granted. But that said light is being glimpsed at the end of the tunnel, even if no-one is particularly keen to start building up inventory just yet.

…and my ten minutes is up (not a fast typer). Time to get back to some real work…

We have just completed an extensive report on export markets in the Middle East for the UK leisure marine industry. The report was commissioned by the BMF and undertaken in conjunction with UKTI.

The report looks at the seven largest markets there: Abu Dhabi, Bahrain, Dubai, Egypt, Kuwait, Qatar and Saudi Arabia, and gives full contact details and business details of all the local importers, distributors, yards etc. All the companies listed have been approached by local British embassy staff for the compilation of the report, and are looking forward to hearing from prospective partners. So it’s a fantastic resource.

At the same time we also looked at some of the aspects of doing business out there. It’s very different, but each local embassy will provide you with a guide to local customs and practises in its country.

The report can be requested via the BMF website.

It was released a couple of weeks ago now, but the FT only puts out its special report on the yacht sector once a year, at the start of the Monaco Yacht Show. It always makes interesting reading as it gives an outsider’s view while still using well-known writers like David Glenn and Michael Howorth.

It looks at everything from finance to eco-issues, chartering, destinations, racing and more. Well worth a read. Go to http://www.ft.com/reports/yachts-2009 to read it online or download the whole thing as a PDF.

Blisteringly hot and extremely busy, this year’s Monaco show exuded confidence with a complete sell-out as far as space went, and the crowds were out in force. Of course its timing couldn’t be better as this time last year the full impact of the downturn hadn’t really been felt, and now last week everyone was talking about the bottom having been reached and future prospects looking brighter.

It wasn’t all good news, with the word from the media guys and girls being that advertising volumes continue to be dire, but at least the decline seems to have levelled out and talk elsewhere was of new orders just around the corner as those who have managed to hold on to their money become less embarrassed about spending it.

ClearLine was representing four clients out there this year – Design Unlimited, Humphreys Yacht Design, Lantic Entertainment Systems and Rainsford Mann Design – and the general consensus was one of useful contacts made and groundwork laid for the year ahead, even if no great deals were signed on the spot. We picked up some good leads ourselves, so no complaints there. Mind you, driving around and parking in Monaco remains as much of a nightmare as ever, but after a wet summer in the UK there’s nowhere to beat the south of France in late September!

Southampton Boat Show 11-20 September
Monaco Yacht Show 23-26 September
METS 17-19 November

We will be attending all these shows and, as in previous years, we are offering one-off publicity packages to exhibitors. These include standard services such as writing, printing and distributing press packs and press releases, sending out invitations to press prior to the shows, and organising launch events if required. We also design and print brochures, flyers and other marketing materials.

Do call us to discuss pricing and timings if we can be of assistance.

Over the past few months we have welcomed three new clients, all focused largely on the superyacht sector.

Design Unlimited is the leading yacht interior design company, whose recent projects include the refit of the 53m Feadship Elizabeth F, the new 72 ft mini-maxi RAN 2 and a 36m Dubois design due for launch this autumn, as well as work for top yards including Sunseeker and Moody.

Lantic Entertainment Systems is the highly regarded developer and supplier of top-of-the-range audio-visual systems for large production boats and superyachts. Now owned by Alewijnse Marine Systems, the Denmark-based company is embarking on a major marketing initiative as its development programme continues to keep its products at the cutting edge of water-borne entertainment.

Monte Fino is known worldwide as a popular brand of semi-custom pocket superyachts ranging in size from 76 to 122 feet. Built by Kha Shing shipyard in Taiwan, the range is undergoing a comprehensive redesign in the capable hands of Humphreys Yacht Design.

Matt writes….I’m very pleased to have joined the board of Marine South East, the organisation funded in part by SEEDA (South East of England Development Agency) which has the task of tackling the critical issues affecting marine businesses in the region and supporting the economic development of the marine sector in the South East. As part of that role I will also chair the organisation’s PR and networking committee.

The role isn’t too onerous and it brings with it a great opportunity to get involved in the broader issues that effect the marine industry – both commercial and leisure – in the south east, and to meet many of the people involved. Key issues that MSE focuses on include training, innovation, development of clusters and raising the industry’s profile with the government. Hopefully we’ll be able to apply our communications skills to help get the organisation’s message across to the industry and its many stakeholders.

We are delighted to announce that we have been appointed to handle the global public relations for Wilhelmsen Ships Services. Wilhelmsen Ships Service is part of Wilhelmsen Maritime Services, a Wilh. Wilhelmsen group company. It has the world’s leading maritime services network, with the ability to service 2 200 ports in 115 countries. The company’s main focus is to deliver improved vessel operating efficiency to the merchant fleet. In 2008 the company made 208,000 product deliveries to 21,000 vessels and handled 53 000 port calls. Wilhelmsen Ships Service has 4,400 employees operating out of 310 offices in 71 countries. For more information, see www.wilhelmsen.com/shipsservice.

ClearLine will be issuing press stories, including latest news on contracts, products, services, trends and other topical subjects, on behalf of WSS. Releases will be high frequency on a fast turnaround regular basis to both printed and web media around the world, reflecting the major position that WSS holds in the merchant shipping sector. The marketing headquarters of WSS are based in Oslo and we are very excited about working with the dynamic and friendly team that is located there. WSS is the latest in a growing number of clients in the shipping sector to be signed by ClearLine.