NEW REGULATION FOR COMMERCIAL MARITIME ACTIVITY IN KSA

Saudi Arabia has recently modernized its commercial maritime law with new regulations. This law will impact maritime contracts, debt enforcement, offshore platforms, and ship agents in the Kingdom. The Saudi General Transport Authority aims to improve maritime transport services by regulating and increasing operational efficiency with high safety standards, creating an investment-friendly environment aligned with Vision 2030.?

Maritime Transport License

A maritime transport license is a document issued by the Transport General Authority (Maritime Transport Sector) as establishment approval to practice any maritime activity following the regulation provisions.

The Saudi Ports Authority also introduced the new Ship Agents Regulations. These rules govern the licensing of ship agents in Saudi Arabia. The rules apply to both Saudi and foreign companies. The intriguing aspect of these regulations is that they now permit foreign investors to function as ship agents in the Kingdom, provided they meet certain requirements.

The Saudi authorities will allow foreign investors to set up 100%-owned legal entities in the Kingdom and obtain a ship agent license. This will help the Saudi market become one of the most attractive global markets for foreign investors, which, in turn, will create job opportunities for Saudi nationals. The aim is to make Saudi ports a hub for international trade.

Maritime Transport License Activities

All or some of the following activities:

a) Transport of people by sea: Persons transportation by sea via ships prepared for this purpose, with more than twelve (12) passengers.

b) Transport of goods by sea: Cargo transportation via ships prepared for that purpose.

c) Ships Bunkering: Supplying a ship in the port or sea with the necessary fuel.

d) Maritime support services: These are the maritime services provided to support ships; they are as follows:

1) Maritime tugging

2) Excavation, deepening, and expansion of basins and sea lanes

3) The supply of maritime ships or platforms with equipment, devices, personnel, and others.

e) Maritime rescue: The assistance provided to the ship in a state of danger, or the things it transports, upon its request, following the provisions of the International Convention On Salvage, IMO 1989, and the law.

f) Removal of maritime wrecks: lifting, picking up, or destroying any ship—or part of it—sunk, stranded, or adrift at sea in the Kingdom maritime areas, or anything lost in the sea and carried away by the current into these waters.?

Maritime Transport License Requirements:?

To obtain the Maritime Transport? license, the following should be met:

1. Application form: The establishment must submit an application form attached to the following documents:

a. A valid copy of the commercial registration.

b. A copy of the Memorandum of Association.

c. A valid social insurance certificate.

d. A valid Zakat and Tax Certificate (if more than a year has passed since the commercial registration).

e. A statement of the ships that the establishment shall operate, the shipping lines, and the supporting documents according to the activity.

2. Provide a suitable location for practicing the activities according to the technical specifications and requirements issued by the relevant authorities.

3. Submission of approval by the relevant authorities to practice the specified activity.

4. Payment of the fees

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