UAE Law and Practice Contributed by: Abdelhak Attalah and Ghassan Hidar, Attalah Legal Consultancy
ian suppliers and UAE buyers, particularly concerning raw materials like seeds and agricultural by-products. These disruptions could have various legal and com - mercial implications, such as frustration of shipping and carriage contracts, where delays or non-delivery of goods due to the conflict may be claimed. War risk insurance coverage may come into play if goods are damaged or lost during transit due to the conflict, and issues related to the deterioration of goods because of late delivery could also arise. Additionally, if goods are significantly delayed or lost, this could lead to claims for total loss under the terms of the carriage contract. While the UAE legal system is equipped to handle such disputes, the implications of international con - flicts for trade and contracts could include increased litigation, more insurance claims and the renegotiation of commercial terms between affected parties. 10. Additional Maritime or Shipping Issues 10.1 Other Jurisdiction-Specific Shipping and Maritime Issues The ML introduced significant changes, particularly regarding foreign ownership. Foreign investors are allowed to own up to 100% of shipping companies, a notable departure from the restrictions of the pre - vious Commercial Maritime Law of 1981. The ML also provides comprehensive provisions addressing
maritime debts, ship mortgages and the foreclosure thereof, offering greater clarity and a more robust legal framework for resolving disputes related to maritime financial obligations. This is expected to have a sub - stantial impact on how shipping companies operate and how creditors enforce their rights in relation to ship mortgages. Additionally, the ML allows UAE residents of any nationality to own and register vessels in the UAE. It also extends registration to companies incorporated in the UAE and vessels managed by UAE-based entities. This represents a significant shift from the previous Commercial Maritime Law of 1981, aligning the legal framework with the evolving needs and interests of the shipping community. Stakeholders in the shipping industry should be mindful of these developments and their potential implications for ownership, finance and dispute resolution in the maritime sector. Another point of clarification pertains to the bareboat charterer of a ship registered abroad that meets the registration criteria for a UAE-flagged vessel, as set out in Article 13 of the ML. It would be useful to deter - mine whether a bareboat chartered-in vessel flying the UAE flag under Article 18 (1) of the ML will still be considered a “foreign ship” for the purposes of Article 15 (1), which requires approval from the Ministry for a foreign ship to engage in marine transportation within UAE ports or to participate in other maritime activities such as towing, piloting or fuelling.
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