O2 Marine, a boat manufacturer, has opened a Dh19 million ($5.17 million) factory in Ajman, a report said.

The company expects the first year of operations to hit Dh10 million, according to the Gulf News report.

O2 is eyeing a market share of 10 to 25 per cent, on rising demand for boats. It will make 50 boats and yachts a year.

Presently it makes four boats a month, which will go up to six to nine boats, in two months, an official said.

Most of the boats they manufacture are for clients outside the UAE, he added.