The United Arab Emirates (UAE) stands out as one of the key players when it comes to maritime trade around the world due to its unique geographical position and modern shipping terminals that act as the connecting link between the Eastern and Western worlds.
However, as international trade grows more and more complex, and as there are various shifts in the political landscape of the world, ship owners, charterers, traders and all those who are involved in maritime trade have to be informed of the latest legislation pertaining to the transport of goods by sea.
A lot has changed since the establishment of the old legislation that came out of the 1981 Commercial Maritime Law. Starting from 2026 onwards, law continues to evolve through court practice. This report will discuss: an overview of the current scenario; tips on how to manage the risks related to these changes; and how to protect your rights as a ship owner, charterer, trader or any other party involved in the maritime trade.
Current Maritime Regulatory Framework: Federal Decree-Law No. 43 of 2023
The most significant development in recent years is the full implementation of Federal Decree-Law No. 43 of 2023 on Maritime Law, which officially repealed the decades-old Federal Law No. 26 of 1981. This new law entered into force in early 2024 and has been further refined by 2026 court practices.
Some of these significant developments include:
- Increased accessibility of registration and ownership of ships registered under the UAE flag by foreign citizens promotes higher foreign investments in the UAE shipping industry.
- Creation of a register for ships under construction permits proper documentation of agreements for building ships.
- Legislation provides increased protection to creditors by giving the courts more control over statutory liens on cargoes for unpaid freight and demurrage.
Common Shipping Disputes in the UAE
Disputes in the shipping industry are usually multi-faceted, as they involve multiple international parties, complicated contracts, and high-value properties. During the year 2026, the UAE courts, especially those located in Dubai and Abu Dhabi, have become more document-oriented while addressing these conflicts.
Ship Arrests and the Role of Letters of Undertaking (LoU)
Vessel arrests continue to be a useful mechanism in enforcing maritime rights despite the changing legal scenario. However, maritime lawyers in Dubai can help creditors take advantage of the new requirements of the court system when filing such suits. An essential development regarding ship arrests is that the court may require creditors to provide countersecurity funds on a case-by-case basis.
Cargo Claims and the “No Manifest, No Load” Policy
As one of the pressing issues requiring immediate attention in 2026, the ‘No Manifest, No Load’ policy enforced by UAE Customs is set to take effect on June 15, 2026. Implemented through the NAIC system, this policy mandates that cargo manifests must receive approval prior to loading at the originating port. Any violation of this requirement risks severe disruptions, including cargo being rerouted, held on board, or refused clearance all of which serve as significant catalysts for cargo claims in the UAE.
Marine Insurance in the UAE: Navigating War Risks and Liability
Given the 2026 increase in the level of regional tensions concerning the Strait of Hormuz, marine insurance UAE is a vital focus point for managing risks. Shipowners should carefully examine their coverage against war risk, as well as the “toll” clause in charterparty contracts.
The United Arab Emirates Courts made it clear that although external factors such as international sanctions and regional crises may affect contract execution, the burden of proof required for force majeure or frustration is extremely high. Insurance policies designed for risks associated with sailing through the Gulf waters should be part of the business operations in the Gulf area since there is no other way around this issue at this point.
Limitation of Liability and the Establishment of Funds
Article 83 of the new law brings the limitation of liability provisions applicable in the United Arab Emirates in line with those of the 1996 Protocol to the LLMC. The main advantage won by ship owners in terms of procedure is the possibility of forming a Limitation Fund via the UAE courts. Ship owners had already enjoyed the right to limit their liability but lacked the procedure to set up a Limitation Fund. But now that the procedure has been changed, courts will form Limitation Funds as well.
The Importance of Specialized Shipping Legal Services
Due to the highly technical nature of maritime law, it becomes necessary to hire specialized shipping lawyers in UAE to ensure your company’s interests are well taken care of by attorneys who have an extensive knowledge of the interaction between the UAE Maritime Code, UAE Civil Procedure Law (revised in January 2026) and the New York Convention for the enforcement of arbitral awards from abroad.
A seasoned maritime lawyer Dubai can provide critical support in:
- Drafting robust arbitration clauses that specify the ADGM or DIFC as the seat of arbitration.
- Navigating the “No Manifest, No Load” compliance requirements to avoid customs penalties.
- Managing complex ship arrest and release procedures across all UAE ports.
Actionable Advice for Shipowners and Traders
- Review your Charterparties: Make sure that your agreements have particular clauses dealing with tolls for regional transit and allocation of war risk insurance.
- Confirm Manifest Requirements: Check your internal procedures regarding the NAIC “No Manifest, No Load” rule and ensure that you send all information as per UAE Customs timelines.
- Create an Evidence Trail: The courts in the UAE will require documented proof of any debts in case of a ship arrest or cargo claim. Ensure your record keeping is impeccable.
- Take into Account the Seat of Arbitration: If you are engaged in big business transactions, it might be advantageous to choose the ADGM or DIFC as your seat of arbitration, since it provides a favorable common-law environment in English.
Frequently Asked Questions (FAQs)
1. Can a non-UAE national own a vessel under the UAE flag?
Yes. With the new amendments brought about by Federal Decree-Law No. 43 of 2023, the limitations of ship ownership have been eased, creating more room for non-UAE nationals’ ownership under specified conditions.
2. How does the ‘No Manifest, No Load’ policy affect cargo transportation?
All cargoes entering the UAE will be required to obtain mandatory approval from UAE Customs prior to loading. Vessels carrying cargoes without such approval will incur fines, cargo rolling, and vessel detention.
3. How has the ship detention process changed in 2026?
In 2026, the courts in Dubai and Abu Dhabi have made the process more stringent. Although ships may still be detained, the claimant should present concrete documentary evidence of the maritime debt. On the other hand, shipowners have the opportunity to release their vessels by obtaining a LoU from a P&I club that is court-approved.
4. Has there been any recognition of the international maritime liability limits in the UAE?
Yes. The current regime recognizes international maritime liability limits expressed in terms of SDRs consistent with the 1996 protocol on material damage and bodily injury claims.
5. Which court supervises maritime disputes in the UAE?
Depending on the contract, disputes may be handled by the UAE Onshore Courts (Civil Law) or the Offshore Courts (Common Law in DIFC/ADGM). For international shipping, the DIFC or ADGM are often preferred for their alignment with international legal standards.
Navigating the complexities of UAE legal frameworks requires specialized expertise and up-to-date knowledge of recent legislative changes. For further details or professional assistance regarding commercial arbitration or maritime disputes, contact us at KH Legal.
If you require further clarification or legal assistance concerning the matters discussed in this article, please do not hesitate to contact Kh legal Advocates & Legal Consultants LLC. Our lawyers would be happy to assist you.
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