High-spec ship building in Dubai

UAE

Jamal S. Abki, general manager of Grandweld Shipyards, talks to The Energy Year about developing new designs to meet the growing demand for smaller vessel classes and utilising AI for predictive maintenance that helps save downtime and costs. Grandweld Shipyards is an integrated facility that provides ship building, ship repair and engineering services.

What are some highlights from Grandweld Shipyards’ operations in 2024?
Shipyards had a remarkable year in 2024, with around 25% growth in business volume over 2023 and a total of 60% growth over the past two years. Our top line mirrored this growth, and our labour force expanded significantly during the period.
A key driver of this growth has been the maintenance that was postponed during the Covid-19 period, which created an uptick in demand for repair and upkeep. Additionally, the rising costs of equipment, machinery and construction have made maintaining older vessels a more attractive option than investing in new ones.
The industry has also seen an increase in conversion projects and upgrades to meet evolving emission standards. Refitting vessels with updated equipment and replacing worn components has further fuelled this unprecedented demand. It has been one of the most dynamic periods in recent history for the sector.

Did you take the opportunity to diversify into new areas of business?
In 2024, we successfully expanded into the military and defence segment. Our expertise in aluminium construction, small vessels and high-speed vessels made it a natural progression to explore opportunities in military applications such as patrol and security boats. The move brought an additional revenue stream and complemented our offshore work, resulting in a robust and well-rounded order book.
2023 and 2024 have been strong years for us, with our shipbuilding orders comprising a balanced mix of offshore vessels, patrol boats and interceptors designed for both safety and military purposes. Many details about these orders are confidential, but the projects originate in several countries, including the UAE. The quality and reliability of our products have earned us a solid reputation that is consistent with the standards we have upheld throughout our history.
Our advantage lies in our ship repair and maintenance capabilities, which position us to provide superior after-sales service. This builds confidence among clients and sets us apart from competitors.
The balance between oil-related and non-oil activities in our business has shifted significantly. Today, we estimate an even 50-50 split between the two segments. Diversification is part of our long-term strategy. The oil and gas business is cyclical, and our growing emphasis on sectors outside oil and gas activities places us in a stronger, more resilient position moving forward.

What would you say are the next key growth opportunities for Grandweld Shipyards?
We have been focusing on breaking into new markets and introducing new designs. We have developed some smaller designs, such as pilot boats and crew boats under 30 meters. They were not a major focus for us previously, but we now recognise that there is a growing demand for vessels in this segment. Many smaller vessels, especially in locations such as Fujairah, are ageing and relying on outdated, obsolete technology. This presents a clear market opportunity for us.
We have already secured orders for our new designs. The Kanoo Group placed an order, and we have three more from two different companies. While these projects may not have large values individually, the overall market potential is significant, and we’re proud to be breaking into it.
Competing in this space has not been easy, especially given the prices being offered by smaller yards in Turkey, Malaysia and China. Also, vessels in this class often operate like taxis, without long-term charters or the backing of major oil companies. This adds complexity to their design and marketing. Nonetheless, we have succeeded in creating a design that meets high technical requirements and is still cost-effective for clients. We are excited to have gained traction in this segment and are eager to expand further.
In parallel, we are continuing to develop designs for hybrid vessels. While the demand for newbuild hybrid vessels and conversions hasn’t yet gained momentum in our region due to a lack of regulations and incentives, we want to be prepared. For over a year, we have been ready to convert existing vessels to hybrid propulsion systems and fit hybrid technology into new vessels. If clients approach us with crew boats that are our builds, we can offer many different hybrid conversion solutions.

Are you incorporating AI and other new technologies into your offerings?
We are using advanced technologies and AI in our stress and thickness measurement systems. These new tools allow us to calculate tolerances with precision and predict potential issues before they arise.
Preventive analyses eliminate surprises and ensure readiness when maintenance is due. The technology also continuously monitors the health of critical equipment, delivering accurate readouts on machinery conditions, highlighting improper usage and forecasting when maintenance will be required. This ensures operational efficiency even when the equipment is being operated by others or inspected by class surveyors for certification, and it protects the investment. Predictive capabilities promise significant advancements in equipment management.
Another element that has become crucial in modern maritime operations is cybersecurity. Smart technology now protects onboard systems, sensitive information and communication channels, safeguarding them against potential cyber-attacks.

What would you say are the main contributions of Grandweld Shipyards to the UAE’s maritime sector over the company’s history?
We take pride in having been pioneers in ship building in the UAE, but this achievement is not ours alone. The credit is shared with Dubai and the UAE, which have consistently provided the infrastructure needed to support business growth.
When we first began operating, ship maintenance and repair capabilities here were limited, and most ships had to go elsewhere for repairs or bring in external expertise, which was both time-consuming and technically challenging. Over the years, we have developed the know-how to provide high-quality ship repairs.
The maintenance business is inherently complex; there are countless variables to consider. Planning and scheduling are particularly challenging because you don’t know what you need to fix until the ship arrives. We have spent years navigating this complexity, creating systems that help us predict a vessel’s needs based on its type, age, systems and maintenance history, and to prepare as best as possible.
This transformation has elevated Dubai’s reputation in the maritime world, attracting global clients who value reliability and high standards. It has also fueled the growth of the ship repair industry here, with companies entering the market and contributing to its development. What began as a challenge to bring order and efficiency to ship maintenance has become a thriving industry, and we’re proud to have played a significant role in that journey.

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