Shipping 2026– Saudi Arabia: Q&A for Commercial Martime Operators

PART A – OPERATING IN SAUDI WATERS

1.What should foreign owners and charterers know about the Saudi maritime legal framework compared with English-law practice?

Relevant to: All operators

Saudi Arabia has a codified maritime statute, the CML, which applies to Saudi vessels and to foreign vessels at the Kingdom’s ports or in its maritime areas, and covers registration, rights in rem, arrest, charterparties, carriage of goods, collision, salvage, general average and marine insurance. There is no separate admiralty court: maritime disputes are heard by the Commercial Courts, and Sharia remains the overarching framework, which affects issues such as the recoverability of interest. Saudi Arabia is not party to the Hague-Visby, Hamburg or Rotterdam Rules, so carriage of goods is governed principally by the CML. The Civil Transactions Law (Royal Decree No. M/191, 2023) and the Law of Evidence (2022) supply general rules on contracts, liability and proof, but do not displace specific maritime provisions. Parties used to English law should not assume that English-law concepts (for example, implied terms or the measure of damages) will be applied by a Saudi court.

2.Who can register a vessel under the Saudi flag, and can foreign-owned or joint-venture companies do so?

Relevant to: Shipowners

A vessel acquires Saudi nationality if it is registered at a Kingdom port and is wholly owned by a Saudi national or, if co-owned, a Saudi national holds the majority of shares; the TGA Chairman may amend this percentage in line with the Kingdom’s economic interests. Self-propelled vessels must be registered to fly the Saudi flag, while smaller craft (e.g., vessels under 24 metres and small fishing, pleasure and diving vessels) are exempt from registration but must be recorded. Registration requires survey and tonnage measurement by the TGA or an authorised classification society, and interested parties may object within 90 days of publication. A foreign vessel bareboat chartered to a qualifying person may be temporarily registered in the Kingdom. Conversely, where a Saudi vessel is bareboat chartered to a foreign person, the owner must notify the registry at least 15 days in advance and the Saudi registration is suspended for the charter term.

3.Can foreign-flagged vessels carry cargo between Saudi ports or provide towage, pilotage or supply services?

Relevant to: Shipowners, Charterers

Not without a licence. Non-Saudi vessels may not provide towage, pilotage or supply services in the Kingdom’s maritime areas, nor engage in coastal navigation between Saudi ports. The TGA Chairman may, by way of exception, license such vessels to carry out one or more of these activities for a specific period. Charterers fixing foreign tonnage for Saudi coastal trades should make the charter conditional on obtaining this licence.

4.Do I need a licence from the Transport General Authority to operate as a shipping agent or maritime transport operator?

Relevant to: Ship Agents, Shipowners, Charterers

Yes. The Transport General Authority (TGA) is the Kingdom’s maritime authority and licenses land and maritime transport activities through its Logisti platform, with fees varying by activity. Shipping agents dealing with customs must also register their representatives with the Zakat, Tax and Customs Authority (ZATCA). The specific eligibility conditions, capital and Saudization requirements, and penalties for each maritime activity are set out in the TGA’s activity regulations and should be confirmed for the particular business model (e.g., liner agency, NVOCC or freight forwarding) before operations begin.

5.Is marine insurance mandatory for my vessel or cargo, and what minimum cover applies?

Relevant to: Shipowners, Charterers, Cargo Owners

The Marine Insurance Coverage Instructions, issued in 2023 by the Saudi Central Bank in coordination with the TGA and now administered by the Insurance Authority, establish a framework for mandatory and non-mandatory marine insurance and set minimum limits of cover and benefits, to ensure compliance with the CML and the conventions to which the Kingdom is party. In addition, Saudi vessels may not trade to areas exposed to war risk, piracy or armed robbery unless the owner, operator or bareboat charterer insures the crew against those risks. Operators should check the Instructions for the categories of vessel and liability that must be insured and the applicable minimum limits.

PART B – VESSEL ACQUISITION, FINANCE AND LIENS

6.When does a buyer acquire title to a newbuild or second-hand vessel, and what must be registered to protect against third parties?

Relevant to: Shipowners

For a newbuild, ownership remains with the shipbuilder until the buyer conducts the necessary trials and accepts delivery, unless agreed otherwise; the shipbuilding contract and any amendment must be in writing and signed. For any vessel, a transaction creating, transferring or terminating ownership or another right in rem must be made by official document, authenticated by a Saudi diplomatic mission if executed abroad, failing which it is invalid; it is effective against third parties only once entered in the ship registry. Transfers are processed with the TGA, including through its Maritime Gate portal.

7.Where and how are shipbuilding, repair and latent defect disputes resolved, and what time limits apply?

Relevant to: Shipowners

The shipbuilder guarantees that the vessel is free of latent defects even after trial and delivery, and the same rule applies to repair contracts; a claim under this guarantee cannot be heard after one year from the date the defect becomes known. In rem claims relating to a vessel are filed with the competent court where the vessel registration office is located, unless the parties have agreed arbitration. A shipbuilder or repairer in possession of the vessel may retain it as security for vessel-related claims until paid or ordered to release it. Where the yard is abroad, jurisdiction depends on the contract’s dispute resolution clause, so owners should agree the forum and governing law at the outset.

8.How is a ship mortgage created, registered and enforced in Saudi Arabia?

Relevant to: Shipowners (and their financiers)

A ship mortgage must be made by official contract. A co-owned vessel may be mortgaged with the consent of owners holding at least three-quarters of the shares, and vessels under construction may also be mortgaged. The mortgage must be recorded in the ship registry and the record lapses after 10 years (or the mortgage term, if shorter) unless renewed. Mortgages rank immediately after maritime liens and among themselves by date of entry. Mortgagees keep their rights whoever holds the vessel and may seek provisional arrest, and a judicial sale clears all mortgages, with the creditors’ rights transferring to the proceeds.

9.Which claims rank as maritime liens, how do they rank, and how long do they last?

Relevant to: Shipowners, Ship Agents, Charterers, Cargo Owners

Maritime liens rank in the following order: (1) court costs of maintaining and selling the vessel; (2) crew wages and social insurance contributions; (3) State fees and taxes, port, pilotage and towage charges; (4) salvage rewards and general average contributions; (5) compensation for collision, pollution, damage to port installations, death and personal injury, and cargo and baggage loss or damage; and (6) debts under contracts concluded by the master outside the home port for the vessel’s maintenance or the continuation of the voyage, including supplies, repairs and debts arising from the shipping agent’s work.

Liens require no formalities, follow the vessel regardless of who owns it, and rank ahead of mortgages. They expire on a judicial sale or a properly published voluntary sale by auction, or after one year (six months for supply debts). That period is extended by three years if the vessel cannot be arrested in Saudi waters, but only for Saudi nationals, Saudi residents or nationals of a reciprocating state. Ship agents and bunker suppliers should therefore act quickly to arrest.

PART C – VESSEL ARREST AND JUDICIAL SALE

10.As a creditor, how do I arrest a vessel in a Saudi port?

Relevant to: Ship Agents, Cargo Owners, Charterers, Shipowners

A provisional arrest requires a judicial order from the competent Commercial Court and is available only to secure a “maritime debt” listed in the CML. The list includes collision, pollution and personal injury claims; charterparty and bill of lading claims; cargo loss or damage; salvage; general average; towage and pilotage; supplies, repairs and docking; crew and agents’ wages; disbursements; ownership and co-ownership disputes; mortgages; port dues; insurance; and wreck removal costs. Applications are filed online. The creditor may arrest the vessel concerned or any other vessel owned by the debtor at the time of filing, except for ownership, co-ownership and mortgage claims. Where a charterer is solely liable, the creditor may arrest that vessel or another vessel owned by the charterer, but not other vessels of the owner. Notice is served on the master, the port authority (to prevent sailing) and the registry. The creditor must file the substantive claim and the claim for validity of the arrest within eight days of notice, failing which the arrest is void. Separately, the authorities may detain vessels for regulatory violations (see Question 34).

11.As an owner or charterer, how do I secure the release of an arrested vessel?

Relevant to: Shipowners, Charterers

The court must order release on provision of a guarantee or other security sufficient to satisfy the debt, typically a bank guarantee or an acceptable P&I club letter of undertaking. Where the arrest relates to an ownership or co-ownership dispute, the court cannot lift the arrest but may allow the vessel to trade against sufficient security. The debtor may appeal the arrest judgment within 15 days of notification, regardless of the amount claimed. If the creditor fails to file the substantive claim within eight days, the operator may apply to have the arrest revoked.

12.How does a forced judicial sale of a vessel work, and what title does the buyer obtain?

Relevant to: Shipowners, Ship Agents, Cargo Owners (as creditors and purchasers)

An executory arrest requires prior official notice to pay, which may be combined with the arrest notice and served on the owner (or on the master for debts against the vessel), together with a summons to appear before the enforcement judge. Notice is also given to the port authority, the registry and the flag state’s consul. The judge sets the starting price, terms and auction dates. The sale takes place over two sessions seven days apart, and if there are no bids a lower starting price is set. The winning bidder pays 20% on award and the balance within seven days, failing which the vessel is resold at that bidder’s risk. An award can be appealed within 15 days only for procedural defects. Claims of entitlement and annulment must be filed at least 48 hours before the auction and do not automatically stay the sale. The sale extinguishes maritime liens and mortgages, and the buyer is not bound by the master’s or crew’s employment contracts.

13.Will a buyer at a foreign judicial sale obtain clean title that is recognised in Saudi Arabia?

Relevant to: Shipowners (and their financiers)

The UN Convention on the International Effects of Judicial Sales of Ships (the Beijing Convention, 2022) opened for signature on 5 September 2023 and entered into force on 17 February 2026, but only for the States that have ratified it (Barbados, El Salvador and Spain at entry into force). Saudi Arabia has not ratified it, so the Convention does not currently bind the Kingdom. Recognition of a foreign sale will therefore depend on Saudi enforcement rules. Any transfer of title must also comply with the CML: the transaction must be made by official document authenticated by a Saudi diplomatic mission if executed abroad, and entered in the registry to be effective against third parties. Buyers should obtain a deletion certificate from the prior registry and confirm with the TGA before registration.

PART D – CARRIAGE OF GOODS AND CARGO CLAIMS

14.What is a shipper liable for if goods are misdeclared or dangerous?

Relevant to: Shippers, Cargo Owners

The shipper (consignor) must provide the particulars of the goods in writing and disclose, label and give handling instructions for dangerous, flammable or explosive goods. It must compensate the carrier for loss caused by inaccurate particulars, even after transferring the bill of lading. If dangerous goods are loaded without the carrier’s knowledge, the carrier may land, destroy or neutralise them without liability, and the shipper bears the resulting loss and expense. The shipper must deliver the goods at the agreed time and place, pay the freight, and is liable for damage to the vessel or other cargo caused by its own fault or a defect in its goods. Special convention rules apply to the carriage of grain, dangerous goods, petroleum, chemicals and gases.

15.Who has title to sue for cargo loss or damage, and what does the bill of lading prove?

Relevant to: Cargo Owners, Consignees, Shippers

The lawful holder of the bill of lading has the right to take delivery and dispose of the goods. The lawful holder is the named person, the bearer (for a bearer or blank-endorsed bill) or the last endorsee (for an order bill). Order bills transfer by endorsement and bearer bills by delivery. Claims may be brought by the lawful holder or consignee, by the shipper as contracting party, and by cargo insurers by subrogation. Between carrier and shipper, the bill of lading is rebuttable evidence of the goods received. Against a third-party holder in good faith, including a consignee who is not the shipper, the carrier cannot prove that the particulars are wrong. Clear reservations by the carrier are therefore critical.

16.Who do I sue for cargo loss when the vessel is chartered – the owner, the charterer or the NVOCC?

Relevant to: Cargo Owners, Consignees

The “carrier” is the person who contracts with the shipper to perform the carriage, whether that is the owner, the operator or a charterer, so the primary claim lies against whoever issued or is identified as carrier in the bill of lading. A transport operator (such as an NVOCC acting as principal under a single transport document) is liable as carrier and benefits from the carrier’s limitation provisions. The owner remains liable for the acts of the master and crew, and under an equipped-vessel charter the lessor is liable for cargo damage unless it proves it performed its obligations without negligence. Claimants should consider arresting the vessel for a cargo claim, which qualifies as a maritime debt, and should name all potentially liable parties within the time limits.

17.Can a carrier limit or exclude liability for cargo loss, damage or delay?

Relevant to: Shipowners, Charterers, Cargo Owners, Consignees

The carrier must make the vessel seaworthy and properly prepare the cargo spaces. Unless otherwise agreed, it is responsible for loading, stowing, carriage, care and delivery, and the goods are in its custody from receipt until delivery. Deck carriage requires the shipper’s written consent, port rules, the nature of the cargo or a local custom, and must be stated in the bill of lading. The CML relieves the carrier where loss results from causes beyond its control such as force majeure, and freight is not payable for goods lost through force majeure or the carrier’s breach. The CML contains its own regime for limiting carrier liability, which also applies to transport operators. Saudi Arabia is not party to the Hague-Visby, Hamburg or Rotterdam Rules, so the applicable limits and exceptions should be checked against the current CML text for the specific claim. Separately, owners may limit global liability for delay claims (see Question 26).

18.Are electronic bills of lading recognised, and what are the risks of delivering cargo against a letter of indemnity?

Relevant to: Shipowners, Charterers, Shippers, Consignees, Ship Agents

Yes. Bill of lading particulars may be recorded in an electronic transport record if the carrier and shipper consent, and that record has the same effect as a paper bill in terms of possession and transfer, supported by the Kingdom’s electronic transactions legislation. The master must deliver to the lawful holder of the bill of lading. A carrier that delivers without production of the bill does so at its own risk against the true holder. Letters of indemnity given in exchange for a clean bill of lading cannot be relied on against a third party who acquired the bill without knowing that its particulars were inaccurate. Owners should ensure that any letter of indemnity is from a creditworthy party, ideally bank-countersigned, and confirm their P&I cover.

19.What are carriers’ and ship agents’ obligations for advance manifest and customs filings at Saudi seaports?

Relevant to: Ship Agents, Consignees, Cargo Owners

Since 29 October 2025, importers and shipping agents must submit the cargo manifest and customs declaration before the goods arrive at Saudi seaports, in accordance with ZATCA’s Rules for Submitting Advance Cargo Information (ACI) at Seaports. Accurate bills of lading and invoices, together with any prior approvals required from other authorities, are essential, and late submission exposes parties to penalties. Customs matters are also governed by the GCC Common Customs Law and its Implementing Regulations. Any distraint or sale of cargo under a charterparty lien is subject to that law.

20.What is a ship agent’s liability to principals, shippers and consignees?

Relevant to: Ship Agents, Shipowners

A shipping agent is liable to the operator as a paid agent. It is not liable to shippers or consignees for loss of or damage to goods received for shipment or discharged for delivery unless caused by its own fault or that of its servants. The agent must take steps to protect cargo interests’ rights against the carrier or transport operator; otherwise it is presumed to have received the goods in the condition and quantity stated in the bill of lading, unless an inspection and official report show otherwise. Agency contracts are subject to the law of the place of performance. Claims by the agent against its principal may be filed in the court of the agent’s domicile, while claims against the agent are time-barred two years after the debt falls due. Debts the operator incurs through the agent’s work can rank as maritime liens.

PART E – CHARTERPARTIES

21.What types of charterparty does Saudi law recognise, and what are the key rights and obligations of owners and charterers?

Relevant to: Charterers, Shipowners

Charterparties must be in writing. Charters for more than one year bind third parties only if registered, and a sale of the vessel does not terminate the charter. Charterers may sub-charter unless prohibited but remain liable to the owner, and owners have a lien over the charterer’s cargo on board for unpaid hire.

Bareboat charters: the owner must deliver a seaworthy vessel, and the charterer crews, maintains and insures it and must redeliver it in the same condition, paying the hire rate for the first 15 days of late redelivery and double the rate thereafter.

Time charters of an equipped vessel: the owner keeps navigational management while the charterer has commercial management and bears fuel and port costs. Hire is suspended if a breakdown lasts more than 24 hours, and the owner may withdraw the vessel if hire is unpaid three days after notice.

Voyage charters: the CML regulates laytime, freight and the consequences of force majeure.

22.How are demurrage and container detention charges claimed and contested?

Relevant to: Charterers, Shipowners, Consignees, Cargo Owners

Under a voyage charter, if loading or discharge is not completed within the agreed laytime, a first additional period (not exceeding the original laytime) runs, during which the owner earns the daily rate agreed in the charter. A second additional period follows at 150% of that rate, without prejudice to other compensation. These amounts are treated as freight-related expenses. Time saved on loading is not carried over to discharge unless agreed, and despatch rewards may be agreed. After the discharge period expires, the master may discharge at the charterer’s cost and risk. Container detention and port storage charges are generally governed by the carrier’s contract terms and by Saudi Ports Authority (Mawani) tariffs, which should be checked for the relevant terminal. Claims under an equipped-vessel charter are time-barred after two years.

23.When can a charterparty or carriage contract be terminated or suspended for force majeure or frustration?

Relevant to: Charterers, Shipowners, Shippers

A voyage charter terminates without compensation on either side if force majeure makes the voyage impossible or if trade with the State of the loading or discharge port is prohibited. If force majeure only temporarily interrupts the voyage, the charter continues without any increase in hire or compensation. If the vessel cannot reach the discharge port, it must proceed to the nearest port; the owner bears the onward costs unless the cause was force majeure, in which case the charterer bears them. Under a time charter, hire is not payable while the vessel is stopped by force majeure. Crew hired for the voyage are paid only for days actually served if force majeure prevents or interrupts it. Contractual force majeure clauses are generally respected, and the Civil Transactions Law supplies the general rules on impossibility of performance.

24.Can owners deviate from or refuse Red Sea transits, and who bears war-risk premiums and rerouting costs?

Relevant to: Shipowners, Charterers, Cargo Owners

The answer turns mainly on the contract: war-risk, liberty and deviation clauses (such as the BIMCO war risks clauses) usually determine whether the owner may refuse a voyage, reroute, and recover additional premiums and costs. Under the CML, if the vessel cannot reach the designated port, it must be directed to the nearest port, with costs borne by the charterer if the cause is force majeure. A voyage charter is terminated without compensation where force majeure makes the voyage impossible or trade with the port State is prohibited. Saudi-flagged vessels may not trade to areas exposed to war risk, piracy or armed robbery unless the crew is insured against those risks. An unauthorised deviation may weaken the carrier’s defences. Carriers should give prompt notice to cargo interests and take reasonable steps to mitigate.

25.How does general average work, and what must cargo interests contribute?

Relevant to: Cargo Owners, Consignees, Shipowners

General average is any extraordinary sacrifice or expenditure, determined by the master, that is intentionally and reasonably made for the common safety to avert a serious risk to the vessel or cargo; other losses are particular average. Freight remains payable on cargo jettisoned or sacrificed for the common safety, subject to the general average rules. The vessel’s general average contribution ranks as a maritime lien, and owners cannot limit their liability for general average contributions. In practice, cargo interests will be asked for a general average bond and guarantee, usually from their cargo insurers, before delivery, and adjustment typically follows the York-Antwerp Rules incorporated in the bill of lading or charter.

PART F – LIABILITY, LIMITATION AND CASUALTIES

26.As a shipowner or operator, when am I liable for the acts of crew, pilots and others, and can I limit that liability?

Relevant to: Shipowners, Charterers

The owner or operator is liable for the acts of the master, crew, pilot and anyone else in the vessel’s service performed in the course of their duties, and for contracts the master concludes within his powers. Limitation follows the international conventions to which the Kingdom is party. It is available for: passenger death or injury and loss of property on board; other death, injury or property damage caused by persons on board; damage to ports and navigational aids; delay in carrying goods, passengers or baggage; infringement of non-contractual rights; and wreck removal. Limitation is not available for: loss caused intentionally or recklessly with knowledge that damage would probably result; salvage and general average contributions; claims by crew and servants; and oil or other pollution damage. The right to limit extends to the non-owner operator, charterer, manager, insurer, salvors, master and crew, and invoking it is not an admission of liability. Liability claims against the owner are time-barred after two years, without prejudice to death and personal injury claims. A builder or supplier of a defective component may also be liable under the shipbuilder’s guarantee or the general tort rules of the Civil Transactions Law.

27.How is liability apportioned after a collision?

Relevant to: Shipowners, Charterers, Cargo Owners

Under the CML:

(1) where a collision is caused by force majeure or an unknown cause, each vessel bears its own loss, even if the other vessel was at anchor;

(2) where several vessels are at fault, liability is apportioned according to their degree of fault;

(3) if the degree of fault cannot be determined, liability is shared equally;

(4) a vessel solely at fault is fully liable for damage to the other vessel, its cargo and crew property;

(5) liability for death or personal injury is joint; and

(6) the same rules apply where the collision is caused by a pilot’s fault, even under compulsory pilotage. Collision claims rank as maritime liens and qualify as maritime debts for arrest. The lien expires one year from the date of the damage.

28.How are salvage rewards assessed, and what are the obligations to render assistance?

Relevant to: Shipowners, Cargo Owners

Salvage (maritime rescue) is governed by the CML provisions on maritime rescue, which apply to foreign vessels even where other CML provisions do not. Masters must assist persons in distress at sea where they can do so without serious danger to their own vessel and crew. A successful salvage earns a reward based on factors including the value of the property saved, the risks involved and the salvor’s efforts. An unsuccessful but diligent salvor may recover reasonable expenses, and additional special compensation may be payable for preventing or minimising environmental damage. A reward is payable even where the salving and salved vessels have the same owner. Salvage rewards rank as maritime liens, the lien expires one year after the operations are completed, and owners cannot limit liability for salvage.

29.What is my exposure for pollution in Saudi waters, and can I limit it?

Relevant to: Shipowners, Charterers

Pollution claims are excluded from the CML’s general limitation regime. They rank as maritime liens and qualify as maritime debts for arrest, so a vessel can be arrested to secure them. Liability and compensation for oil pollution are governed by the international conventions applied in the Kingdom, which the 2023 edition of this guide identified as including MARPOL 73/78 (with its 1997 Protocol), the 1992 Protocol to the Civil Liability Convention (CLC), the Bunkers Convention 2001 and the London Dumping Convention and its 1996 Protocol. Current party status should be confirmed against the IMO status list. Owners should ensure that CLC and Bunkers certificates and P&I cover are in place before entering Saudi waters.

30.If my vessel is wrecked in Saudi waters, what can the authorities do and what costs will I bear?

Relevant to: Shipowners

A “maritime wreck” includes any vessel or part of a vessel sunk or stranded in the Kingdom’s maritime areas, items washed into those areas, and a vessel likely to sink or ground there where no effective assistance is available. The TGA may seize the wreck as security for the cost of removal, sell it administratively by auction and recover its costs from the proceeds with priority over other creditors. The vessel’s registration is struck off once it is wrecked. Wreck removal costs are a maritime debt for arrest purposes and are a category for which owners may limit liability. Owners should notify their P&I club immediately.

31.Which international conventions affect my liability or compliance obligations in Saudi waters?

Relevant to: Shipowners, Charterers, Cargo Owners

Liability and carriage: Saudi Arabia is not party to the Hague-Visby, Hamburg or Rotterdam Rules, so cargo liability is governed by the CML, while limitation of owners’ liability follows the conventions to which the Kingdom is party.

Safety and navigation: the Collision Regulations (COLREGs) 1972, the 1969 Tonnage Convention (which the CML uses for gross tonnage) and IMO safety and security instruments, including the ISPS Code, apply.

Pollution: see Question 29.

Law of the sea: UNCLOS 1982 defines the Kingdom’s maritime zones.

Judicial sales: the Beijing Convention is not in force for Saudi Arabia (see Question 13).

Enforcement: the New York Convention and regional treaties (see Question 37).

Customs: the GCC Common Customs Law applies. Party status for specific conventions should be confirmed against the IMO status list before relying on it.

PART G – MASTER AND CREW

32.When do the master’s acts bind the owner or operator, and how is the master appointed and dismissed?

Relevant to: Shipowners, Charterers, Shippers

The operator appoints and dismisses the master. A dismissed master is entitled to compensation under the general rules. The master acts as the operator’s agent, including before the courts, for acts necessary for the vessel and voyage, and restrictions on that authority cannot be invoked against third parties acting in good faith. The master may represent the operator only where neither the operator nor its agent is present. In an emergency, the master may pledge the vessel, freight and, if necessary, cargo to raise a loan, or sell part of the cargo, with court permission (or that of a Saudi mission or local authority abroad). Owners of cargo sold are compensated at the market price at the discharge port, and shippers may object and take their goods on paying full freight. The master may not sell the vessel without the owner’s authority. He may arrange repairs or substitute tonnage during the voyage, and must file a report on unusual incidents within 24 hours of arrival. The owner is liable for the master’s contracts made within these powers.

33.What laws govern crew employment, and what claims can crew bring against the vessel?

Relevant to: Shipowners, Charterers (bareboat)

The CML’s maritime employment provisions apply to persons working on vessels engaged in international voyages, and the Labor Law applies where the CML is silent. Saudi nationals need a seaman’s service book from the TGA to work on vessels sailing outside Saudi waters. Employers must provide free medical treatment for illness or injury in service, pay full wages during the voyage while a crew member is sick or injured, and meet burial and repatriation costs. A crew member dismissed at a foreign port cannot be forced to disembark without written permission from the Saudi mission. Under a bareboat charter, the charterer is the employer. Crew wages and social insurance contributions are second-ranking maritime liens and maritime debts for arrest purposes, and an arrest buyer is not bound by crew contracts. Crew claims are time-barred 12 months after the employment ends.

PART H – PORTS AND REGULATORY MATTERS

34.What happens if my vessel is inspected, fined or detained in a Saudi port, and how can I challenge it?

Relevant to: Shipowners, Ship Agents, Charterers

The Saudi Ports Authority (Mawani) and the TGA inspect vessels for safety, security (including ISPS Code compliance), environmental compliance (including MARPOL) and customs compliance. Port State Control inspections of foreign-flagged vessels cover seaworthiness, crew welfare and pollution prevention. The authorities may inspect vessels and record violations, detain a vessel and prevent it from sailing, and impose fines in line with the schedule of violations. Any interested party may object to a maritime transport violation before the competent objections committee within 14 days of the date the violation was detected, and the committee’s decision takes effect on approval. Owners and agents should rectify deficiencies promptly, involve the flag state and classification society, and file any objection within the deadline. Separately, the TGA may grant temporary relief from certain document validity requirements.

PART I – DISPUTES, ENFORCEMENT AND TIME LIMITS

35.Which Saudi courts hear maritime disputes, and what remedies are available?

Relevant to: All operators

There are no specialist maritime courts. The Commercial Courts hear maritime disputes, including charterparty, cargo, collision and salvage claims, in the absence of an arbitration agreement, and in rem claims go to the court where the vessel registration office is located. Crew employment disputes go to the Labour Courts. The key remedies are vessel arrest as security, damages claims, liens over cargo for unpaid hire or freight, and enforcement through judicial sale. Parties may also use mediation, including under the Saudi Center for Commercial Arbitration (SCCA) Mediation Rules 2026, or arbitration (see Question 36).

36.Should my charterparty or bill of lading provide for SCCA arbitration, London arbitration or the Saudi courts, and will a Saudi court give effect to that choice?

Relevant to: All operators

Saudi courts generally recognise charterparty law and arbitration clauses incorporated into bills of lading, provided the reference clearly incorporates the clause, which then counts as a written arbitration agreement under the Arbitration Law. The SCCA Arbitration Rules 2023 (in force for cases filed from 1 May 2023) introduced the SCCA Court, and amended Rules take effect on 1 November 2026.

Following Council of Ministers Resolution No. 60 (2025), only a person with capacity to dispose of the right may agree to arbitrate. A draft new Arbitration Law was published for consultation in October 2025. SCCA arbitration with a Saudi seat is convenient where enforcement against Saudi assets is expected. London arbitration remains common for international charters, and its awards are enforceable in the Kingdom under the New York Convention, subject to the points in Question 37.

37.Will a foreign arbitral award or court judgment against a Saudi counterparty be enforced in the Kingdom?

Relevant to: All operators

Generally yes for arbitral awards; more selectively for judgments. The new Enforcement Law (Royal Decree No. M/237), in force from October 2026, replaces the 2012 law. It largely preserves the conditions for enforcing foreign judgments and awards, including reciprocity, applicable treaties, due process, the Saudi courts not having jurisdiction over the dispute, and consistency with Saudi public order and Sharia. Saudi Arabia enforces foreign arbitral awards under the New York Convention. Foreign judgments are enforced mainly where a treaty applies (the GCC Convention, the Riyadh Convention and the 1952 Arab League Convention) or reciprocity is shown. Awards of interest may face difficulty under the public order/Sharia ground. Uncontested enforcement typically takes three to six months, and creditors should plan for six to eighteen months including execution against assets.

38.What are the key time limits for maritime claims?

Relevant to: All operators

Under the CML:

(a) creditor’s claim and validity of arrest – eight days from notice of arrest;

(b) appeal against an arrest judgment – 15 days;

(c) maritime liens – one year, or six months for supply debts, extended by three years in certain cases;

(d) latent defect claims against the builder or repairer – one year from knowledge;

(e) liability claims against the owner – two years from the event;

(f) claims against shipping agents or transport operators – two years from maturity;

(g) crew employment claims – 12 months from termination;

(h) bareboat charter claims – two years from redelivery; (i) time and voyage charter claims – two years;

(j) marine insurance claims – two years; and

(k) objection to a vessel’s registration – 90 days from publication. Parties should diarise these deadlines at the outset of any claim.