Article 263 of the Saudi Commercial Maritime Law
المادة 263 من النظام البحري التجاري · الفصل الثاني: الإنقاذ البحري
The Article provides that a marine salvage reward is due even if the salvaging and salvaged ships are owned by one person.
Official text (Arabic)
This article has not been amended since the law was issued.
تُستَحق مكافأة الإنقاذ البحري ولو كان بين سفن مملوكة لشخص واحد.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 263 explained in plain English
It might be thought that a reward is meaningless if the salvaging ship and the salvaged ship are owned by one person, since the owner would be paying himself. But this Article settles the matter: a marine salvage reward is due even if it is between ships owned by one person.
The provision has a practical effect, because the reward does not belong to the owner alone. Article 262 provides for distributing the reward among the ship's owner, master, and crew, so the master and crew are not deprived of their share merely because the two ships belong to one owner.
This Article does not change the conditions for entitlement to the reward: the reward is not due if one of the cases of non-entitlement in Article 264 exists, such as the salvaged ship expressly and for a reasonable cause refusing the intervention of the ship offering the service, or a tug helping the ship in tow except for exceptional services. The amount of the reward is set by agreement of the parties, and otherwise by the court under Article 262.
Practical example
A company in Dammam owns two ships. One broke down in the Arabian Gulf and the other towed it to safety. The salvage reward is due even though both ships belong to the same company, and the master and crew of the salvaging ship have a share in it under Article 262.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
How we write and review contentCommercial & Corporate Law lawyers: ask a specialist about your case
Describe your situation briefly and we'll suggest a lawyer who specialises in this law
Commercial & Corporate Law lawyers
Lawyers who handle this kind of case
Ibrahim Al Salem Law Firm
Active contributorDr. Ali Al-Rubaie Law Office and Ittihad Al-Asr Legal Company
Frequently asked questions about Article 263 of the Saudi Commercial Maritime Law
Is a salvage reward due if both ships have the same owner?
Yes. A marine salvage reward is due even if it is between ships owned by one person.
Why does this matter for the crew?
Because Article 262 provides for distributing the reward among the ship's owner, master, and crew.
More articles on Collision and Maritime Salvage
- Article 111
The master submits a report on unusual incidents to the Authority within 24 hours of arrival; the Authority verifies it and draws up a record, and the master may not unload the affected cargo before the report except in extreme necessity.
1- إذا طرأت أثناء الرحلة حوادث غير عادية تتعلق بالسفينة أو بالركاب أو بالشحنة وجب على الربان أن يعد تقريراً بذلك يقدمه إلى الهيئة خلال أربع وعشرين ساعة من وصول
- Article 254
The article specifies who bears compensation for a maritime collision according to its cause: fault of one ship, force majeure or an unknown cause, or common fault, and sets out the cases of joint liability toward third parties.
1- إذا حدث تصادم بسبب خطأ إحدى السفن التزمت السفينة المحدثة للضرر بالتعويض الذي يترتب على هذا التصادم. 2- إذا وقع التصادم بسبب قوة قاهرة، أو كان هناك شك في أسبا
- Article 255
The Article provides that the liability set out in the collision chapter also arises if the collision occurs through the pilot's fault, even if pilotage is compulsory, without prejudice to the general rules of liability.
تترتب المسؤولية المنصوص عليها في هذا الفصل, إذا وقع التصادم بخطأ المرشد، ولو كان الإرشاد إجباريًّا، وذلك مع عدم الإخلال بالقواعد العامة في المسؤولية.
- Article 256
The Article requires the master of each ship involved in a collision to help the other ships and those aboard without endangering his own ship, and to give them his ship's particulars; the shipowner is liable only on his express instructions.
1- على ربان كل سفينة من السفن التي حدث تصادم بينها أن يبادر إلى مساعدة السفن الأخرى وبحارتها وغيرهم من الأشخاص الموجودين عليها، وذلك بالقدر الذي لا يعرض سفينته
- Article 257
The Article lists the courts before which a claimant may bring a maritime collision action, and allows arbitration agreements provided it takes place within the area of one of these courts, as the claimant chooses.
1- للمدعي إقامة الدعوى الناشئة عن التصادم البحري أمام إحدى المحاكم الآتية: أ- المحكمة التي يقع في نطاق اختصاصها موطن المدعى عليه، أو مقر عمله الرئيس. ب- المحكمة
- Article 258
The Article bars hearing a collision compensation action after two years from the incident and a recourse action after one year from the death, and suspends the periods if the ship cannot be arrested and the claimant is Saudi or domiciled in the Kingdom.
1- لا تسمع الدعوى بالتعويض الناشئة عن التصادم بعد مضي سنتين من تاريخ وقوع الحادث. 2- لا تسمع دعوى الرجوع المنصوص عليها في الفقرة (5) من المادة (الرابعة والخمسين
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.

