SAUDI ARABIA Law and Practice Contributed by: Faisal Daudpota, Daudpota International (in alliance with Khalil Aljehani Law Firm)
insurers, or by authorised capitalmarketinstitutions for investment-related funds. • Calculation: The fund amount is typically calculated based on statutory limits using Special Draw - ing Rights (SDRs) converted into Saudi Riyals, or based on vessel tonnage for maritime incidents. • Mandatory deposit: To legally constitute the fund, the applicant must lodge a financial deposit or guarantee with the court covering the calculated liability amount. 3.6 Seafarers’ Safety and Owners’ Liability Although Saudi Arabia has not ratified the MLC 2006, it has integrated similar standards into its domestic Commercial Maritime Law (2019), which applies to all Saudi-flagged vessels and foreign ships in its waters. This is supplemented by the KSA Labour Law (2005) where specific maritime statutes are silent. Seafarer protections include: • contracts and wages – written contracts are man - datory for all crew members and must be recorded in the vessel’s log; • working hours – work is capped at 14 hours per 24-hour period and 72 hours per week, with a mini - mum of ten hours of rest daily. • welfare – ship-owners are legally obligated to provide free food and medical care, pay wages during sickness, and cover repatriation costs upon contract expiry or injury; and • safety – the law enforces strict adherence to inter - national competency standards (the International Convention on Standards of Training, Certification and Watchkeeping for Seafarers – STCW), requir - ing crew members to be medically fit and at least 18 years old.
2013 Carriage of Goods by Sea Rules and the Elec - tronic Transactions Regulation (2007), which makes electronic bills of lading legally binding. Key provisions include: • mandatory details – bills of lading must list specific particulars, including the goods’ weight, marks, and the names of the shipper and consignee; • liability limits – compensation for loss or damage is capped unless the value of the goods is explicitly stated in the bill; and • time bar – legal actions regarding cargo damage generally must be initiated within one year. 4.2 Title to Sue on a Bill of Lading Under the Saudi Commercial Maritime Law, the lawful holder of the bill of lading – whether a named consign - ee or an endorsee – possesses the primary right to claim delivery and sue the carrier for loss or damage. A shipper may sue if they still hold the bill or have suffered the loss directly. Additionally, cargo insur - ers acquire the right to sue via subrogation once they have indemnified the cargo owner. Saudi courts recognise the assignment of the title to sue, typically executed by endorsing and transferring the bill. While valid between parties without the car - rier’s consent, the assignment only binds the carrier (debtor) if they are officially notified or explicitly accept it. 4.3 Ship-Owners’ Liability and Limitation of Liability for Cargo Damages Under the 2019 Maritime Law and Hague-Visby princi - ples, carriers are liable for cargo loss, damage or delay from receipt to delivery – unless they can prove the cause was force majeure, shipper fault or “perils of the sea”. Liability is strict if the vessel was unseaworthy and the owner failed to exercise due diligence. Liability is typically capped at 666.67 SDR per package or 2 SDR per kilogram (whichever is higher), unless the cargo’s value was declared before shipment. The contractual and actual carrier are distinguished thusly:
4. Cargo Claims 4.1 Bills of Lading
Saudi Arabia is not a signatory to international con - ventions like the Hague-Visby, Hamburg, or Rotter - dam Rules. Instead, carriage by sea is governed prin - cipally by domestic legislation. The primary authority is the Commercial Maritime Law (2019), which applies to all vessels in Saudi waters. This is supported by the
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