Dubai and Saudi Arabia lead Middle East’s rise as cruise ship refurbishment hub

The Middle East has emerged as a significant hub for the cruise ship refit and refurbishment industry in the last decade, with Dubai and Saudi Arabia leading the charge.

This strategic development not only enhances the region’s maritime capabilities, but also offers cruise lines a viable alternative to traditional refit centres.

Dubai’s entry into the cruise ship refit and refurbishment market has been a game-changer for the local maritime sector and wider cruise tourism industry. The city’s state-of-the-art facilities, led by Drydocks World, coupled with its strategic location, have attracted several international cruise lines seeking minimally disruptive refurbishment services.

One notable example is the refurbishment of Cordelia Cruises’ ship, Empress. In August 2021, the vessel entered Dubai’s Drydocks World for a comprehensive refit and renovation. This project underscored Dubai’s capability to handle large-scale cruise ship refurbishments, positioning the city as a competitive player in the global maritime industry.

The successful completion of the Empress refit paved the way for further collaboration. In April 2024, Cordelia Cruises announced an expansion of its Indian cruise itineraries, a move made possible by the enhancements undertaken during the Dubai refit. 

This development not only bolstered Cordelia’s offerings but also highlighted Dubai’s role in facilitating the growth of cruise tourism in the region. With cruise lines able to carry out extensive repair, maintenance and upgrade works locally without having to reposition to the traditional refit hubs of Europe or Asia, it creates the conditions for longer homeporting season in the region.

More recently, in February 2025, TUI Cruises’ Mein Schiff 4 underwent a dry dock in Dubai ahead of its repositioning via Cape Town. The two-week refurbishment, scheduled for completion by February 25th, exemplifies Dubai’s growing reputation as a preferred destination for cruise ship maintenance and upgrades.

These projects built on progress made by Drydocks World in 2018 in breaking into the cruise refit market, with the total overhaul of Queen Elizabeth II, the former Cunard Line flagship, ahead of her launch as a floating hotel in Port Rashid. Through proving its capabilities and expertise with the project, Drydocks World, traditionally a specialist in maritime and offshore refit projects, was able to attract the interest of cruise lines.

AIDAstella was one of the first cruise ships to undergo refit in Dubai. In 2018 while QE2 was being prepared for her life as a floating hotel, AIDA Cruises sent its Dubai homeporting ship into drydock. During the project, the Langnese Happiness Station, an ice cream bar, was installed on-board, along with a redeveloped spa, 3,500sqm of new carpeting, and a new teen’s club. All the ship’s lighting systems were also overhauled, with energy-efficient LED lights installed throughout all public areas.

In 2021, Carnival Cruise Line sent Carnival Spirit into dry dock in Dubai to be re-painted in the new red, white and blue livery design, while also having some technical work done, including minor enhancements and maintenance such as new carpeting, tiling, and other cosmetic changes. The existence of a well-established cruise ship refit sector in the country provided Carnival Cruise Line the flexibility it needed to have Carnival Spirit prepared for her Australian cruise season without the need to reposition to Europe or Asia.

Saudi Arabia follows Dubai with strategic partnerships

Parallel to Dubai’s advancements, Saudi Arabia has been making significant strides in establishing itself as a key player in the cruise shipbuilding and refit sector. Central to this ambition is the Kingdom’s collaboration with Fincantieri, one of the world’s largest cruise shipbuilding groups.

In May 2024, Fincantieri announced the establishment of its subsidiary, Fincantieri Arabia, aimed at enhancing Saudi Arabia’s shipbuilding capabilities in line with the Vision 2030 agenda. This initiative focuses on transferring technological expertise across various sectors, including cruise, defence, and offshore industries. 

The collaboration is poised to create opportunities for Saudi nationals and foster the development of a robust maritime industry within the Kingdom. Saudi Arabia’s partnership with Fincantieri coincides with the launch of AROYA Cruises, the Arab world’s first domestic cruise line, backed by Saudi Arabia’s sovereign wealth fund.

While Fincantieri Arabia will initially focus on offshore work, the opportunities for cruise ship refit and refurbishment work are clear, especially for AROYA, which has plans to expand its fleet and build its own cruise ships in the years ahead.

In January 2025, Fincantieri signed a series of agreements with Saudi partners. These agreements underscore the company’s strategic interest in the region and its dedication to supporting Saudi Arabia’s economic diversification efforts. The partnerships are expected to facilitate the growth of local shipbuilding expertise, positioning Saudi Arabia as a competitive force in the global maritime arena.

Providing flexibility to global cruise industry

The emergence of Dubai and Saudi Arabia as hubs for cruise ship refit and refurbishment provides greater flexibility to the global cruise industry. Traditionally, cruise lines have relied on European and Asian shipyards for maintenance and upgrades. The development of facilities in the Middle East offers a strategic alternative, particularly advantageous for cruise lines homeporting in the region, or transiting through it.

The Middle East’s strategic location, bridging key maritime routes between Europe, Asia, and Africa, provides logistical benefits that can result in reduced downtime and operational costs for cruise operators. Additionally, the investment in advanced shipyard infrastructure and skilled labour in Dubai and Saudi Arabia ensures that the quality of refit and refurbishment services meets international standards.

Furthermore, the collaboration between Saudi Arabia and Fincantieri highlights a trend of knowledge transfer and international partnerships, which can accelerate the development of local expertise and technological capabilities. 

While the prospects are promising, several challenges must be addressed to sustain and enhance the Middle East’s position in the cruise ship refit and refurbishment market. One primary concern is the need for continuous investment in infrastructure to accommodate the increasing size and complexity of modern cruise ships. 

From 1990 until 2000, most cruise new ships built were in the 70,000-80,000 gross ton range, while between 2015 and 2024, the average gross tonnage of a new cruise ship from the major cruise lines was 170,435 gross tons — more than twice the size of a ship built during the 1990s.Ensuring that shipyards are equipped with the latest technology and facilities is crucial to meeting the evolving demands of the industry.

Another challenge lies in developing a skilled workforce capable of executing sophisticated refurbishment projects. Initiatives like Fincantieri’s collaboration with Saudi Arabia, which emphasize training and knowledge transfer, are steps in the right direction. However, sustained efforts in education and vocational training are essential to build a robust talent pool in the region.

Looking ahead, the Middle East’s role in the cruise ship refit and refurbishment sector is poised to expand. As more cruise lines recognise the strategic and economic advantages of utilising facilities in Dubai and Saudi Arabia, the region is likely to witness increased investment and activity in this domain. This growth will not only bolster the local economies but also contribute to the resilience and diversification of the global maritime industry.