Ship Registration In The UAE

Introduction

Ship registration in the UAE is the process of officially registering a vessel to fly the UAE flag, allowing it to operate legally under the country’s maritime regulations. Over time, the UAE has become one of the top maritime hubs globally, attracting ship owners and operators from around the world. This is the result of its strategic geographical location, advanced maritime infrastructure, favourable business environment, and favourable legal and tax frameworks. The UAE offers a globally recognized registration process for both commercial and private vessels.

Latest advancements in the UAE Maritime Law

In March 2024, a new “Maritime Code” was introduced [Federal Law No. 43 of 2023], repealing the existing law [Federal Law No. 26 of 1981]. The new Law has bought many developments in the field of Ship Registration.

Under the old law, only individuals with UAE nationality were allowed to own vessels. If the owner was a company, majority of its shareholders and directors had to be UAE nationals.

The new Law expands the eligibility criteria for vessel ownership. As per this new Law, vessels can be owned by:

• entities based in the UAE, such as those with a management office or business centre here; and
• by individuals who are nationals of the UAE or any other GCC countries. This change means that Emirati nationality is no longer a requirement for owning a vessel. UAE-registered vessels can now be owned by companies based in the UAE or by individuals from the UAE and other GCC countries.

According to Article 12 of the New Maritime Code, the ship acquires the nationality of the State if it is registered in the Ministry’s Ships Register.

Article 13 of the Code enumerates the requirements to register a ship in the Ministry’s Ships Register, including, but not limited to the ship being designated for navigation, the ownership of the ship, valid international certifications and the approval of its drawings and specifications.

Article 14 enables the ships registered in the ship register to fly the State’s flag. It simultaneously restricts other ship which are not registered to do so.

Benefits of registering a ship in UAE

• Tax Benefits: The UAE provides a tax-minimum environment with no income tax or capital gains tax on shipping earnings, making it an attractive option for both commercial operators and investors.
• Strong Legal Framework: The UAE’s maritime laws align with international standards and conventions. Ship owners operating under the UAE flag benefit from strong legal protections, ensuring fairness, transparency, and security.
• Strategic Location: Positioned at the crossroads of Asia, Europe, and Africa, the UAE offers convenient access to some of the world’s busiest shipping lanes, making it an ideal hub for global trade.
• Global Recognition: As a member of key international maritime organizations like the International Maritime Organization (IMO) and the International Convention for the Safety of Life at Sea (SOLAS), the UAE offers a registration system recognized worldwide.
• Ownership Flexibility: Foreign companies can own ships under the UAE flag as long as they meet specific legal criteria, providing excellent opportunities for international businesses.

Authorities for Ship Registration

The two primary authorities to handle ship registration are:

1. The Federal Transport Authority – Land and Marine (FTA)
2. Dubai Maritime City Authority (DMCA).

The Federal Transport Authority – Land and Marine (FTA)

The Federal Transport Authority (FTA) manages maritime operations across the UAE, including ship registration, safety rules, and ensuring compliance with international maritime laws. The FTA handles the registration of ships operating in the UAE’s waters and makes sure they meet global safety and environmental standards.

Dubai Maritime City Authority (DMCA)

For ships operating in Dubai, the Dubai Maritime City Authority (DMCA) handles the registration process. DMCA offers a streamlined registration experience and ensures that vessels comply with both local and international maritime regulations.

Criteria for Ship Registration in the UAE

The requirements for the registration of ships are mentioned in Article 13 of the Federal Law No. 43 of 2023 on Maritime Commercial Law. It consists of the following essentials:

• It shall be normally designated for navigation in the State’s maritime zones, coastal navigation between the State’s ports or navigation on the high seas.
• The majority of the shares in the ship shall be owned by natural persons or legal persons who have the nationality of the State or the nationality of any of the countries of the Gulf Cooperation Council or shall be owned by natural persons or legal persons who have a domicile, headquarters or ship management office in the State.
• It shall not be more than (20) twenty years old from the date of completion of its shipbuilding in accordance with the shipbuilding contract, with the exception of passenger ships, which shall not be more than (10) ten years old.
• Its drawings and specifications shall be approved by the Ministry or its authorized representative after inspecting the ship.  
• It shall have valid international certificates indicating its suitability for maritime navigation, issued by any of the classification bodies licensed by the Ministry, or whose certificates are approved by the Ministry.

Necessary documents for Ship Registration

• Proof of Ownership: This could be a bill of sale, builder’s certificate, or the previous registration certificate (if applicable).
• Owner’s Identification: If an individual owns the ship, a copy of their passport is needed. If the ship is owned by a company, documents like the certificate of incorporation, business trade license, and details of the authorized representative will be required.
• Vessel’s Technical Details: Information about the ship’s size, weight, engine type, and cargo capacity is necessary.
• Classification Certificate: A certificate from a recognized classification society (e.g., Lloyd’s Register, American Bureau of Shipping, or Det Norske Veritas) confirming the ship meets international safety standards.
• P&I Insurance: Protection and Indemnity (P&I) insurance, covering third-party liabilities, crew claims, environmental damage, and other risks.
• Inspection Certificate: A certificate from an authorized maritime inspection body, verifying that the ship meets technical and safety standards.

Ship Registration Process in the UAE

The Federal Transport Authority (FTA) serves as the national ship registry for the UAE, while the Dubai Maritime City Authority (DMCA) handles ship registrations for vessels in Dubai. The process of registering a ship in the UAE is generally straightforward, although the specific steps may vary depending on whether the registration is with the FTA or DMCA. Below are the general steps involved in the ship registration process:

• Submit Application

The first step in the registration process is submitting an application to the relevant maritime authority. This can often be done online through the authority’s portal or via an authorized maritime consultant or legal firm.

•  Provide Required Documents

Submit all the necessary documents, including proof of ownership, classification certificate, technical specifications, insurance certificates, and any other supporting documents.

•  Ship Inspection

A recognized classification society will inspect the ship to ensure it meets all technical and safety requirements. This inspection is essential for verifying the vessel’s compliance with international standards such as SOLAS, MARPOL, and other conventions.

• Pay Registration Fees

Ship registration fees vary depending on the type of vessel and its tonnage. Fees are typically due after the application is approved and before the registration certificate is issued.

•  Issuance of Registration Certificate

Once the inspection is complete and the necessary fees are paid, the relevant maritime authority will issue a ship registration certificate, officially allowing the vessel to fly the UAE flag.

•  Ongoing Compliance

After registration, ship owners are required to comply with ongoing regulatory requirements, such as:

• Annual Inspections: The vessel will need to undergo periodic inspections to ensure it remains compliant with international standards.
• Renewal of Registration: Ship registration is typically valid for a year, and the owner must renew it annually by submitting updated documentation and undergoing necessary inspections.
• Compliance with Maritime Laws: Ship owners must adhere to the UAE’s maritime laws, including labour laws, environmental regulations, and safety standards.

 Conclusion

Registering a ship in the UAE comes with many advantages for both local and international ship owners. These include access to major maritime trade routes, tax benefits, and a solid legal framework. While the process is relatively simple, it does require following specific regulations, providing the necessary documentation, and passing inspections to comply with both international standards and local laws.

By registering a vessel under the UAE flag, ship owners can benefit from its prime location, favorable tax policies, and globally recognized legal protections—helping ensure smooth sailing for their maritime operations.

Contributed by – Anakha Ajay