All You Need to Know on Maritime Law Updates in the UAE

Posted by Awatif Mohammad Shoqi Advocates & Legal Consultancy on July 27th, 2023

The UAE is home to a number of ports, which contribute in large numbers to the economy of the country. Strategically, the UAE is located at a significant point for international maritime trade, and thus, has a well-developed structure of maritime laws. This article outlines the major highlights of the maritime law in the UAE.

The law governing maritime in the UAE is Federal Law No. 26 of 1981 Concerning Commercial Maritime Law. It seeks to promote domestic as well as foreign trade in the country, and to boost the economic growth and security of the people (Article 2).

Definition of Vessel: Article 11 of the UAE Maritime Law defines a vessel as any structure operating in maritime navigation, regardless of its power, weight, or purpose of navigation. Vessels belonging to the UAE must be registered in one of the country’s ports, as per Article 14, and must be owned by a natural/juridical person having UAE nationality.

Registration: As per Article 18 of the UAE Maritime Law, a vessel should not have the flag of UAE if it is not registered in the country. However, certain floating structures such as fishing boats, pleasure boats, diving boats, tugs, cranes, dredges etc. are exempted from registration.

A registration form must be submitted to the Registration Bureau under Article 27 of the Maritime Law, with the following details:

1. Name of the vessel
2. Former name(s) of the vessel and port of registration
3. Date and place of construction as well as name and address of the factory/dock of construction
4. Type, tonnage and dimensions of the vessel
5. Name of the owner/co-owners as well as their details
6. Name of the owner company as well as its details
7. Name and qualifications of the master of the vessel
8. Name and details of the operator of the vessel
9. Mortgage, if any, and the details of the same
10. Attachments that have been affected upon the vessel

Those operating a vessel with a UAE flag but without getting the vessel registered may face imprisonment for up to a year, and/or a fine of almost AED 50,000. Additionally, the vessel may be confiscated (Article 44).

Furthermore, every vessel must have a navigation license, and a certificate of safety in case it carries people (Article 50).

Mortgage of Vessels: Vessels with more than ten tons of tonnage may be mortgaged, as per Article 97 of the UAE Maritime Law. This can be done by entering into a mortgage contract, under Article 99, which will contain the details of the vessel as well as the terms and conditions of the mortgage. The mortgage will then be registered with the Registration Bureau, at the port of registration.

Arrest of a Vessel: A vessel may be arrested for the satisfaction of a maritime debt under Article 115 of the UAE Maritime Law. A maritime debt is a claim against the vessel, arising under the following situations:

1. Damages caused by the vessel due to collision or otherwise
2. Loss of life or personal injuries caused by the vessel
3. Assistance and salvage
4. Contracts regarding use or exploitation of the vessel
5. Contracts regarding carriage of goods under a charter contract, bill of lading or other documents
6. Loss or damage of goods carried in the vessel
7. Common average
8. Towage or piloting
9. Supply of products or equipment necessary for the use or maintenance of the vessel
10. Construction, repair or fitting of the vessel
11. Sums spent by the master, shippers, charterers or agents on account of the vessel or the owner
12. Wages of the master, officers, crew and other people working onboard the vessel
13. A dispute of ownership of the vessel
14. Dispute as regards common ownership of the vessel
15. A maritime mortgage

Arrest of a vessel can be filed with a civil court of competent jurisdiction, and if an arrest order is issued, it will prohibit the vessel from sailing, as per Article 118 of the law. However, the arrest order can be set aside by way of a guarantee or security presented before the court, which can satisfy the debt on the vessel.

Although the UAE Maritime Law is comprehensive to a large extent, maritime jurisprudence is under continuous development in order to make UAE the most desired place for maritime trade.

Full Article: https://www.alrowaad.ae/legal-blog/all-you-need-to-know-on-maritime-law-updates-in-the-uae/