The Federal Decree-Law No. (43) of 2023 on Maritime Law (Maritime Code), resolved several legal complications and uncertainties from previous laws. The vessel registration and preventive arrest are significantly modified by the new maritime law, which combines UAE maritime regulations with international standards.
The rules and regulations governing vessel registration in the UAE have changed significantly as a result of the new maritime law. The major change strengthens the eligibility criteria for registration, allowing more vessels to fly the UAE flag. Under the new rules, both chartered and under-construction vessels are permitted to be registered.
The Ministry of Energy and Infrastructure shall set up a marine vessel register under Article 7 of the new maritime code. The implementing regulation allows ship registers to include ship types, marine units, dimensions, classifications, navigation purposes, and sailing areas. This register has to comply with ministry regulations and consequences for deletion. All register data and amendments are reported to the ministry by the competent authority.
According to Article 13 (1), (b) of the new maritime law states that a vessel can be registered under the ministry’s ship register, if the majority of its shares are owned by individuals or companies who hold UAE citizenship or one of the Gulf Cooperation Council countries. In addition, ownership may be owned by the companies that have a head office, place of residence, or ship management office in the UAE. This is a significant change from the previous law, which limited registration to vessels owned by UAE nationals or companies with a majority of UAE national shareholders.
The abolished maritime law under Article 24 briefly mentioned registering under construction ships; however, Articles 9, 10, and 11 of the new maritime law specify the detailed conditions for vessel registration. Additionally, the shipbuilder, rather than the buyer, is required to register the list of shipbuilding contracts for under-construction ships.
According to Article 18 of the new maritime law, foreign-registered charterer vessels may apply for UAE registration and fly the UAE flag as long as the charter party lasts for at least six months and all registration requirements are fulfilled. If the vessel is to be rented without equipment, Article 19 allows UAE-registered vessel owners to request permission to fly the flag of another nation.
The new maritime law introduces significant amendments to the provisions and procedures of preventive arrest over marine vessels, extending the application of marine debts and the types of vessels subject to arrest. The marine debts that may be subject to a precautionary arrest are specified in Article 53, which includes:
- Damage caused by the ship’s operation.
- Loss of life or personal injury due to the ship’s operation.
- Recovery operations or agreements.
- Environmental damage caused by the ship.
- Cost of rescuing sunken or abandoned ships.
- Agreements for the use of ships or the transportation of individuals or goods.
- Loss or damage of cargo or personal belongings.
- Average losses in general.
- Piloting, supplying, and towing the ship.
- Shipbuilding, repair, or costs related to equipment.
- Port, canal, and harbour fees.
- Crew wages include repatriation and social insurance.
- Amounts paid on behalf of the ship owner or operator
- Insurance premiums and takaful contributions
- Commissions, brokerage, or agency expenses.
- Disputes over ship ownership, possession, and mortgage/security rights.
- Disputes arising from ship sale contracts.
Article 54 allows the arrest of any vessel owned by the debtor at the time the arrest petition is submitted, this is a significant change from the previous maritime law in the UAE, which limited arrest to vessels that belonged to the debtor at the time the debt was incurred. According to the new maritime law, chartered ships can only be arrested during the specified time period which is stipulated in the charter party agreement. Additionally, the new maritime law states that individuals seeking vessel arrest must be required to provide sufficient financial security to cover crew and vessel maintenance costs.
The new UAE maritime law extends and clarifies vessel registration and preventive arrest requirements to meet international standards. These changes are expected to improve UAE maritime operations and enhance the regulatory structures.
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