Shipping is beneficial to everyone in the world, although few people are aware of this. We transport medications, food, technology, and memories. Low-cost and effective maritime transport is crucial to growth and sustainable development as the world’s population continues to increase, especially in developing nations. The benefits of trade and commerce are distributed more fairly thanks in part to shipping. Every country relies on maritime trade to buy and sell goods since no nation is totally self-sufficient. In the form of raw materials, components, or finished goods, a large portion of what we use and consume on a daily basis has been transported by water or will be in the future. Federal Law Number. 26 of 1981 (also known as the “Commercial Maritime Law”) is the piece of legislation that controls ship registrations and ship mortgages in the UAE. According to UAE Cabinet Resolution 52 of 2006, there are two regulatory bodies in the UAE that oversee marine matters: the Federal Transport Authority – Land & Maritime (FTA) and the Dubai Maritime City Authority (DMCA), which was established by Dubai Law Number 11 of 2010 (the “DMCA Law”). The DMCA’s regulatory and administrative authority is restricted to the Emirate of Dubai, while the FTA is the UAE’s regulating body for maritime affairs. In addition to the DMCA Law and the Commercial Maritime Law
The Commercial Maritime Law serves as the foundation for regulations governing vessel registration in the UAE, and the FTA serves as the nation’s ship registry. A vessel may only fly the UAE flag if it is owned by a natural or legal person with UAE nationality and weighs at least 10 tonnes, according to the Commercial Maritime Law. Having a port of registration, or choosing a specific Emirate in which to register the vessel, is a requirement for vessel registration. The FTA’s website is where you complete the registration process online.
It is advised that such vessels be registered with the DMCA and not the FTA if they are intended for navigation in the Emirate of Dubai. No vessel may be utilized in the Emirate (Dubai), according to the Executive Regulations, “unless it is licensed and registered with the authorities,” with the DMCA serving as such authority. Similar wording is used in the DMCA Law as well. Additionally, the Executive Regulations provide that they apply to all the vessels navigating the waters of the Emirate
All organizations and people involved in nautical activities inside the Emirate, whether they be crew training, crew driving, crew guiding, the crew working on board, chartering, transportation by such boats, or any other maritime operation.”
The terms “ship registration” and “ship licensing” are distinct in the context of the Executive Regulations; the former refers to maintaining a record of the licensed vessel’s information with the DMCA, whereas the latter deals with a ship’s authorization to operate in Dubai waters.
The term “Vessel” is defined in the Commercial Maritime Law, whereas “Marine Transport Means” is used in the DMCA Law. Although this is the case, the terms “Vessel” and “Marine Transport” are used in the Executive Regulations. According to the Executive Regulations, there are three types of vessels:
Applications for registration and licensing are submitted online via the DMCA website, which contains all necessary information. The applicant can also take help from reputed shipping law experts if there is any need for legal clarification. The information needed by the DMCA to register a ship is the same information that reputable ship registries typically need. Following technical inspections by the DMCA and the production of proof of current comprehensive insurance supplied by an insurer licensed in the UAE, among other conditions, licenses are valid for one year and renewed. Owners of ships should be aware that permits will be revoked if they are not renewed within a year of their expiration date.
Obviously, a ship mortgage needs to be documented at the registry where the target ship is documented. Any mortgages secured by a ship flying the flag of the UAE should be reported to the FTA, which is the country’s ship registry. However, if the “UAE ship” is not registered with the FTA itself, it becomes unclear where a mortgage should be recorded. If the ship is registered with the DMCA rather than the FTA, this scenario could arise (as discussed earlier).
The DMCA is required to carry out a number of “duties and competencies” under the DMCA Law, including “[r]regulating all legal acts linked to Marine Transport Means such as selling and mortgage.”