UAE is the focal point in the world and is ostensibly a perfect location for maritime operations. Consequently in 1981, Federal Transport Authority Land and Maritime promulgated Maritime Law, as amended in 1988 to regulate maritime activities in UAE, however, considering the pace at which maritime operations are increasing in UAE, restrictions in Maritime Law failed to monitor pertinent issues faced by ship-owners nowadays. This impediment has restricted UAE from several years and hinders UAE desires to be associated with flourishing Maritime Industry. Bearing in mind the consequences of an antiquated law, UAE Federal Transport Authority- Land and Maritime has issued a draft law to improvise the existing law and is operations. The law promises the ship-owners to possess 100% ownership over vessel companies. 

This update from Maritime Lawyers of UAE offers guidelines over the new draft law prepared to confront and resolve current issues faced by maritime companies in UAE. Importantly, the law encourages further investments in the maritime industry and subsequent benefits for investors. The law entails an explicit chapter for investments in the maritime industry and its advantages. This incorporates the capacity to have 100 ownership in a maritime company, register ships in the name of the country and foundation of the maritime fund to allow UAE citizens to invest in the maritime industry regardless of the sector. 

The articles of the new law incorporate a proposition for maritime navigator’s chamber to address the interests of private sector explicitly for individual ship-owners or companies and to become a party to the International Chamber of Navigation. The law additionally incorporates writings that empower the FTA, state ports and other skilled experts to address the issue of the vessels, which are left and deserted in territorial waters, give more noteworthy assurance to the privileges of seafarers and set out prerequisites for sea instruction and preparing. The new bill is reliable with the arrangements presented by the international treaties or conventions, which are growing rapidly and constantly. It additionally incorporates a broad update of the customary standards of maritime law such as accidents in the sea, insurance on goods and passengers and alike. 

In a nutshell, the new law is a significant step to confront critical issues encountered by maritime industry due to long drawn existing law and to extend maritime infrastructure which enables the country to become a favoured place for maritime transportation. Another important aspect is that the legislators of UAE have perceived the need to redesign the maritime law to also accommodate the arbitration to settle maritime issues, which is in relation to UNCITRAL rules for arbitration. In light of the vision of the UAE being perceived as an unrivalled Maritime Hub, advancements in the maritime infrastructure would not allure investors to invest in UAE. Hence the demand for a new maritime law exists.