Ship Registration And Flag State Control In Saudi Arabia

Hamad in association with Youssry Saleh & Partners

Contributor

Hamad in Association with Youssry Saleh & Partners is a large proficient law firm with over 40 years of experience in the Egyptian and Saudi Arabian markets. The firm brings together the expertise and resources of 2 prominent firms solidifying their position as a leading legal provider in the Kingdom of Saudi Arabia.
The Kingdom of Saudi Arabia has a robust legal framework governing its maritime industry, which is codified in the Commercial Maritime Law.
Saudi Arabia Transport

Maritime Regulations in the Kingdom of Saudi Arabia

The Kingdom of Saudi Arabia has a robust legal framework governing its maritime industry, which is codified in the Commercial Maritime Law. This law, issued by Royal Decree No. M/33 in 2018, provides a comprehensive set of regulations and definitions relevant to the country's commercial maritime operations.

One of the key aspects covered by the Commercial Maritime Law is ship registration and the role of the flag state. According to the law, a "Vessel" is defined as "Any floating craft normally designed to operate in maritime navigation, even if it is not for profit, including vessel appurtenances, which are necessary for its operation." This broad definition encompasses a wide range of vessels, from commercial cargo ships to offshore platforms that are subject to the country's maritime regulations.

Maritime Industry in Saudi Arabia

The maritime industry plays a vital role in Saudi Arabia's economy, particularly in the oil and gas sector, which relies heavily on offshore platforms and tankers for the exploration, production, and export of hydrocarbons. The kingdom's strategic location on the Red Sea and the Persian Gulf also makes its maritime infrastructure crucial for international trade and transportation.

The Commercial Maritime Law establishes the Public Transport Authority (the Authority) as the regulatory body responsible for overseeing the country's maritime industry. The Authority is responsible for maintaining a ship registry and ensuring that all vessels operating within the Kingdom's maritime areas comply with the law and its implementing regulations.

Maritime Companies in Saudi Arabia

Under the Commercial Maritime Law, any person, whether natural or legal, can own and operate a vessel within the Kingdom's maritime areas. This includes both Saudi nationals and foreign entities. The law requires all vessels to be registered with the Authority, and the registered owner is considered the "Vessel Owner" for the purposes of the law.

The law also recognizes the role of other maritime service providers, such as Shipping Agents and Cargo Agents, who are responsible for handling the logistical and administrative aspects of vessel operations. Additionally, the law defines the responsibilities and obligations of Carriers, Consignors, and Transport Operators involved in the carriage of goods by sea.

Flag State Control and Enforcement

As the flag state, Saudi Arabia exercises control over vessels registered under its flag, ensuring they comply with international and domestic maritime regulations. The Commercial Maritime Law empowers the Authority to conduct inspections, enforce safety and environmental standards, and impose penalties for non-compliance.

The law also addresses issues related to maritime accidents, collisions, and other incidents, outlining the responsibilities and liabilities of the various parties involved. It further provides a framework for maritime rescue operations and the handling of maritime wrecks within the Kingdom's maritime areas.

Conclusion

The Commercial Maritime Law in Saudi Arabia demonstrates the kingdom's commitment to regulating its maritime industry and ensuring the safety and efficiency of its maritime operations. By establishing a comprehensive legal framework, the law provides a solid foundation for the growth and development of the country's maritime sector, which is crucial for its economic prosperity and integration with the global maritime industry.

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.

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