SAUDI ARABIA Law and Practice Contributed by: Faisal Daudpota, Daudpota International (in alliance with Khalil Aljehani Law Firm)
1. Maritime and Shipping Legislation and Regulation 1.1 Domestic Laws Establishing the Authorities of the Maritime and Shipping Courts In Saudi Arabia, maritime and shipping disputes are governed by a modern, codified legal framework, primarily the Commercial Maritime Law (2019). The system does not have dedicated maritime courts but instead utilises specialised circuits within the Com - mercial Courts. Main Domestic Laws Establishing Maritime Authorities The legal authority for maritime matters is established through: • the Commercial Maritime Law (Royal Decree No M/33, 2018) – published in 2019, this is the pri - mary, comprehensive legislation governing mari - time navigation, vessel registration, maritime liens, contracts (charterparties, carriage of goods) and collisions; • the Commercial Courts Law (2020) – empowers specialised commercial circuits within the judiciary to hear maritime disputes; • the Enforcement Law and its Regulations – governs the procedures for the arrest, detention and forced sale of vessels; and • the Transport General Authority (TGA) – the primary regulatory body responsible for licensing, inspect - ing and managing maritime transport and ports. Common Maritime and Shipping Claims in Practice In Saudi Arabia, the most common claims filed are related to active trade through the Jeddah, Dammam and Yanbu ports. These include: • cargo claims (damage/loss) – claims arising from damaged, short-landed or lost cargo under bills of lading or sea waybills; • ship arrest and maritime liens – proactive arrest of vessels to secure debts, including fuel supply (bun - kering), port dues, repairs or crew wages; • charterparty disputes – claims arising from breach - es of time or voyage charter agreements, such as demurrage, off-hire or non-payment of charter hire;
• maritime accidents and collisions – disputes over liability for vessel collisions in territorial waters, damage to port infrastructure or wreck removal; • salvage claims – claims for rewards by salvor ves - sels for assisting vessels in distress; and • marine insurance disputes – disputes related to protection and indemnity (P&I) or hull and machin - ery (H&M) insurance coverage. Competent Courts and Authorities Maritime disputes are adjudicated based on the nature of the claim. Claim types include: • substantive commercial disputes (cargo, charter, collision) – commercial courts (specialised maritime circuits) are the competent courts; • vessel arrest/detention – commercial courts (for orders) and enforcement courts (for sale) are the competent courts; • administrative violations (fines, licensing, pollution) – the TGA and specialised committees (appeals within 14 days) are the competent authorities; • maritime labour disputes – labour courts (or com - mercial courts, depending on the contract nature) are the competent courts; and • contractual arbitration – the Saudi Center for Commercial Arbitration (SCCA) is the competent authority. 1.2 Port State Control Saudi Arabia operates a robust port state control (PSC) system, primarily governed by the Riyadh Memorandum of Understanding (Riyadh MoU) on Port State Control, which was signed in 2004 and is designed to harmonise inspection regimes across the Gulf Cooperation Council (GCC) region. The system aims to ensure foreign vessels visiting Saudi ports comply with international safety, environmental and labour standards, acting as a second line of defence against sub-standard shipping. System and Regulatory Framework The Riyadh MoU aligns with international standards set by the International Maritime Organization (IMO) and the International Labour Organization (ILO). The system covers the International Convention for the
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