Shipping 2025

UAE Law and Practice Contributed by: Abdelhak Attalah and Ghassan Hidar, Attalah Legal Consultancy

tance and salvage of sea vessels in peril, and Articles 242–253 outline the duties and respon - sibilities of ship-owners, operators and other rel - evant parties in ensuring the safety of navigation and the proper conduct of salvage operations. These provisions aim to promote accountabil - ity and responsible maritime practices, setting out the legal framework for managing collision incidents and salvage activities within the UAE. 2.3 1976 Convention on Limitation of Liability for Maritime Claims The 1976 Convention on Limitation of Liability for Maritime Claims (LLMC) is applicable in the UAE. This international convention, which sets out the framework for limiting liability for certain maritime claims, has been incorporated into the ML. Furthermore, the UAE’s recent ratification of the 1996 Protocol to the 1976 LLMC, which entered into force on 23 May 2021, has additional impor - tant implications for maritime liability in the UAE. The 1996 Protocol increases the limits of liability for maritime claims, reflecting the growing costs of maritime incidents, and ensures enhanced financial protection for ship-owners, charterers, managers, operators and salvors. • Increased limitation of liability: The 1996 Pro - tocol raises the limits of liability, aligning them with modern economic realities. This increase in liability limits has a significant impact on the scope of compensation available for inci - dents such as marine pollution, cargo loss, personal injury, etc. • Applicability of liability limits: With the ratifica - tion of the 1996 Protocol, the liability limits now extend not only to ship-owners but also to charterers, managers, operators and salvors, allowing these parties to limit their liability in the event of maritime claims.

• Impact on claims against ship-owners: Ship- owners, including operators, charterers and managers, can now limit their liability for various maritime casualties, such as personal injury, cargo damage and pollution. This limitation applies unless the claim arises from gross negligence or intentional misconduct, providing a financial ceiling for these parties. • Impact on salvors: The 1996 Protocol also benefits salvors by allowing them to limit their liability in claims arising from salvage opera - tions, while ensuring fair compensation for their efforts. • Harmonisation with international standards: The ratification of the 1996 Protocol brings the UAE’s maritime liability framework in line with international standards set by the Inter - national Maritime Organization (IMO), ensur - ing smoother interactions in cases involving foreign parties or international incidents. In summary, the ratification of the 1996 Proto - col strengthens the legal framework for maritime liability in the UAE, offering enhanced financial protection and clearer liability limits for ship- owners, charterers, operators, managers and salvors, while aligning the country’s maritime laws with international conventions. 2.4 Procedure and Requirements for Establishing a Limitation Fund Procedure and Requirements The procedure for establishing a limitation fund in the UAE is outlined in the ML. The process is initiated by a request from the ship-owner or their representative, who submits it to the court with jurisdiction over the area where the incident occurred, unless otherwise agreed upon. Request for establishment The ship-owner or their representative must file a request for the creation of a compensation fund

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