SAUDI ARABIA Law and Practice Contributed by: Faisal Daudpota, Daudpota International (in alliance with Khalil Aljehani Law Firm)
3.2 International Conventions: Collision and Salvage Saudi Arabia’s liability framework blends the Commer - cial Maritime Law (2019) with international conven - tions and Sharia principles. The 2019 Maritime Law governs all vessels in Saudi waters. However, Sharia remains the fundamental legal principle, emphasising “full compensation” for harm, which can sometimes override statutory liability caps. Relevant international conventions include: • International Convention on Salvage (1989) – regu - lates rewards based on success and environmental protection efforts (special compensation); • LLMC 1976/96 Protocol – allows owners to limit liability for claims like collisions based on vessel tonnage; and • Convention on the International Regulations for Preventing Collisions at Sea (COLREGs) 1972 – used to determine negligence in collision cases. Regarding collision liability, owners are generally joint - ly and severally liable for damages unless they prove no negligence occurred. In cases of common fault, liability is split proportionally based on the degree of responsibility. 3.3 Convention on Limitation of Liability for Maritime Claims The 1996 Protocol amending the LLMC is applicable in Saudi Arabia, which acceded to it on 6 April 2018, with the protocol entering into force for the Kingdom on 5 July 2018. The status of amendments and legislation is as fol - lows. • 1996 Protocol: In force since July 2018. • 2012 Amendments (to the 1996 Protocol): While the 1996 Protocol is in force, there is conflicting information regarding whether the 2012 amend - ments (which significantly increased limits) have been formally ratified or applied by Saudi courts, as some sources indicate it was not initially adopt - ed. However, the 2019 Maritime Law aims to align with international conventions.
• Domestic legislation: The applicable legislation is the new Commercial Maritime Law, issued under Royal Decree No M/33 dated 5 Rabi’ II 1440H (Jan - uary 2019), which came into effect on 3 July 2019. This law regulates maritime liability, replacing older, outdated regulations. 3.4 Vienna Convention on the Law of Treaties The 1969 Vienna Convention on the Law of Treaties (VCLT) is applicable in Saudi Arabia. The Kingdom of Saudi Arabia officially acceded to the Convention on 14 April 2003, and it entered into force for the country on 14 May 2003. The UK Supreme Court’s use of the VCLT for treaty interpretation in MSC Mediterranean Shipping Com- pany SA v Conti 11 Container Schiffahrts-GmbH & Co KG MS “MSC Flaminia” has several implications for Saudi Arabia. • Applicability: As a party to the VCLT, Saudi Arabia acknowledges the rules regarding the interpretation of treaties, particularly Articles 31 and 32 (general rules of interpretation, good faith, context, object and purpose), which form part of international law. • Contextual application: While Saudi Arabia is a party to the 1969 VCLT, its legal system is based on Sharia (Islamic law). When implementing inter - national conventions (such as those regarding maritime claims), the Saudi authorities generally ensure compliance with international obligations while adhering to internal legal principles. • Judicial interpretation: The principles of treaty interpretation established in the VCLT are used to guide the interpretation of international agree - ments, including maritime law, in Saudi legal contexts. 3.5 Procedure and Requirements for Establishing a Limitation Fund To cap liability for maritime or financial claims, par - ties must file a formal application with a competent Saudi court to deposit a specific sum representing their maximum liability. • Eligible parties: The fund can be established by liable parties such as ship-owners, charterers and
525 CHAMBERS.COM
Powered by FlippingBook