Article 32 of the Saudi Commercial Maritime Law
المادة 32 من النظام البحري التجاري · الفصل الأول: بناء السفينة وملكيتها
The article provides that ownership of the ship remains with the builder and passes to the party ordering it only on accepting delivery after trials, unless agreed otherwise.
Official text (Arabic)
This article has not been amended since the law was issued.
تبقى ملكية السفينة لمتعهد البناء، ولا تنتقل ملكيتها إلى طالب البناء إلا بقبول تسلمها بعد تجربتها، ما لم يتفق على غير ذلك.
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 32 explained in plain English
This article determines the moment ownership of the ship passes from the builder to the party ordering the construction.
The rule: ownership of the ship remains with the builder.
When does it pass? It passes to the party ordering the construction only when two things occur:
- The ship is tried out.
- The party ordering the construction accepts delivery after the trials.
The exception: the two parties may agree otherwise, for example that ownership passes at another stage.
In practical terms, even if the party ordering the construction has paid part of the price during construction, it does not by default become the owner of the ship until after trials and its acceptance of delivery. This gives it an opportunity to verify the ship before ownership passes to it. If the parties want a different arrangement, they may agree on it in the construction contract, which must be in writing and signed under Article 31.
This provision is linked to Article 33, under which the builder guarantees the ship is free of hidden defects even after delivery is accepted following the trials. A person contracting to build a ship can consult a lawyer specializing in commercial cases to fix the moment ownership passes in the contract.
Practical example
A marine tourism company in Jeddah contracts to build a yacht and pays half the price. The yacht remains the builder's property until it is tried out and the company accepts delivery, unless the contract says otherwise.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 32 of the Saudi Commercial Maritime Law
When does ownership of a ship under construction pass to the party ordering it?
On accepting delivery after trials, unless the parties agree otherwise.
Who owns the ship during construction?
By default, ownership remains with the builder.
More articles on Ship Construction and Co-Ownership
- Article 31
The article requires a ship construction contract, and any amendment to it, to be proved in writing, and the contract is valid only if signed by its parties.
يثبت عقد بناء السفينة وأي تعديل يطرأ عليه بالكتابة، ولا يكون صحيحاً إلا بتوقيع أطرافه عليه.
- Article 33
The article makes the ship builder guarantee that the ship is free of hidden defects, even if the party ordering it accepted delivery after trials.
يضمن متعهد بناء السفينة خلوها من العيوب الخفية، وإن قبل طالب البناء تسلم السفينة بعد تجربتها.
- Article 34
The article provides that a suit for guarantee of hidden defects is not heard after one year from the date of learning of the defect.
لا تسمع دعوى ضمان العيوب الخفية بعد مضي سنة من تاريخ العلم بالعيب.
- Article 35
The article extends the hidden-defect guarantee and the one-year period from learning of the defect, set in Articles 33 and 34, to ship repair contracts.
تسري أحكام المادتين (الثالثة والثلاثين) و(الرابعة والثلاثين) على عقود إجراء إصلاحات السفينة.
- Article 36
The article requires acts creating, transferring or ending ownership of a ship or other real rights in it to be proved by an official document, otherwise void, and they are effective against third parties only once entered in the ship's register.
1- تُثبت التصرفات التي يكون موضوعها إنشاء حق الملكية أو نقله أو انقضاءه، أو غير ذلك من الحقوق العينية على السفينة؛ بمحرر رسمي، وإلاَّ كانت باطلة. وإذا وقعت هذه
- Article 37
The article provides that the majority view, meaning owners of more than half the shares, governs decisions on operating a jointly owned ship, and lets the dissenting minority ask a court to annul a decision within 15 days.
1- يُتَّبع رأي الأغلبية في كل قرار يتعلق باستغلال سفينة مملوكة على الشيوع، ما لم ينص النظام أو يتفق المالكون على غير ذلك. 2- تتوافر الأغلبية لمالكي أكثر من نصف
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.