The UAE has introduced a new Maritime Law by the Federal Decree-Law No 43 of 2023, which will enter into force by the end of March 2024.
The new Maritime Law makes a big transformation with regard to marine vessels eligibility for registration in the UAE.
The abolished federal law no. 26 of 1981 on Maritime has limited the registration on the vessels wholly owned by UAE nationals, and provided that if the vessel is owned by a limited liability company or a joint stock company, it can only be registered in the UAE if the shareholders owning at least 51% of the shares are UAE nationals.
Article 13(1)(b) of the New Maritime Law provides that a vessel may be registered in the Ministry of Energy and Infrastructure's Ship Register (the "Ministry's Ship Register") if the majority of the shares in the ship is owned by natural persons or juristic persons holding the nationality of the UAE or the nationality of one of the Gulf Cooperation Council countries.
So, there are two major changes. First, the owners can be either UAE nationals or nationals of GCC countries. Second, the nationality restriction is limited to the majority shares of the vessel and not its whole ownership.
Further, marine vessels owned by natural persons or juristic persons with a domicile, head office, or ship management office in the UAE, may be registered in the UAE and fly the UAE flag, without any restriction on the nationality of the owners.
4 Mar 2024
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
