The Kingdom of Saudi Arabia has a well-developed legal framework governing the maritime industry. This law, issued through Royal Decree No. M/33 in 2018, provides a comprehensive set of regulations and definitions pertaining to various aspects of the maritime industry in the country. One of the key aspects of the law is the establishment of the Public Transport Authority, which oversees the implementation and enforcement of the Commercial Maritime Law. The Authority, led by a Chairman, is responsible for regulating and supervising the maritime industry in the Kingdom of Saudi Arabia.
The law applies to all Saudi Arabian vessels and foreign vessels that anchor at the Kingdom’s ports, but it does not apply to warships, non-commercial vessels, and rescue vessels. The Authority’s jurisdiction extends to the Kingdom’s maritime areas, which include “the internal waters, territorial sea, contiguous zone and exclusive economic zone.” This broad scope ensures that the Authority has the necessary powers to regulate all maritime activities within the Kingdom’s maritime boundaries.
For a vessel to acquire Saudi Arabian nationality, it must either be registered in a Saudi Arabian port or fully owned by a Saudi national, or have a majority of shares if the vessel is co-owned. The vessel must always fly the Saudi Arabian flag unless to avoid serious risks, and it is not legally allowed to fly under more than one state. All vessels must be registered in accordance with the provisions of the law to obtain a certificate, except for any vessel under 24 meters, any fishing vessel not exceeding 30 tons and 20 meters, and diving vessels not exceeding 10 tons and 11 meters which cannot sail beyond the Kingdom’s territory.
The registration office issues the vessel a provisional registration certificate, which is usually valid for one trip or a period of 6 months, but can be renewed for a period of 2 years. If a Saudi Arabian maritime company obtains ownership of a vessel from outside the Kingdom, the owner may receive a provisional registration certificate from the Kingdom or from the Kingdom’s diplomatic mission in the country where the ownership was transferred from. The registration can be objected to by another party within 90 days, to be filed with the judicial authority. Any lost registration will be replaced by the extracting office after submission of reasons for the loss or damage. The ship’s registration will be revoked if it is destroyed, captured, transferred to a foreign person, or upon the owner’s demand.
Any foreign chartered vessel used for single or multiple trips, chartered to a specific person, shall be registered within the Kingdom of Saudi Arabia and shall be subject to its laws. Any suspension of a registration certificate will ban a vessel from flying with the Saudi Arabian flag. The maritime regulations under the Kingdom of Saudi Arabia compel the Authority to issue marine platform licenses to operate within the Kingdom’s maritime territory. These platforms must abide by security and safety conditions for the complete protection of the marine environment in the Kingdom’s territory, and are subject to a constant 5-year inspection.
The presence of this well-developed legal framework, coupled with the establishment of the Public Transport Authority, demonstrates the Kingdom’s commitment to fostering a thriving and regulated maritime industry. This, in turn, has attracted the interest of both domestic and international maritime companies to operate within the Kingdom, contributing to the growth and development of the Saudi maritime industry.