Article 36 of the Saudi Commercial Maritime Law
المادة 36 من النظام البحري التجاري · الفصل الأول: بناء السفينة وملكيتها
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.
Official text (Arabic)
This article has not been amended since the law was issued.
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 التصرفات في دولة أجنبية وجب تصديقها من ممثلية المملكة في تلك الدولة.
2- لا تكون التصرفات المشار إليها في الفقرة (1) من هذه المادة نافذة بالنسبة إلى الغير إلاَّ بقيدها في سجل السفينة.
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 36 explained in plain English
This article lays down important rules for anyone selling or buying a ship or creating a right over it.
1. The acts covered: acts whose subject is:
- Creating, transferring or extinguishing ownership.
- Or any other real rights in the ship.
2. The formal requirement: these acts are proved by an official document, otherwise they are void. An ordinary unofficial sale contract is not enough.
3. Acts abroad: if they take place in a foreign country, they must be attested by the Kingdom's representative mission in that country.
4. Effect against third parties: they are effective against third parties only once entered in the ship's register.
In practical terms there are two stages: the official document is a condition of the act's validity, and entry in the register is a condition of its effectiveness against third parties. If a person buys a ship by official document and does not enter the purchase in the register, they may be unable to rely on their purchase against others. This is consistent with the definition in Article 1 of a ship's owner as the person whose name is recorded in the Kingdom's ship register as owner.
A person about to buy or sell a ship would do well to consult a lawyer specializing in commercial cases to verify the form and the entry.
Practical example
Ahmed sells a fishing ship to Khalid by a paper signed between them without an official document. Under the article this act is void; for it to be valid it must be proved by an official document, and for it to be effective against third parties it must be entered in the ship's register.
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 36 of the Saudi Commercial Maritime Law
Is the sale of a ship valid by an ordinary contract between the parties?
No. Acts that transfer ownership or create a real right in a ship are proved by an official document, otherwise they are void.
What if the ship is sold outside the Kingdom?
The act must be attested by the Kingdom's representative mission in that country.
When can the sale of a ship be relied on against third parties?
It is effective against third parties only once entered in the ship's register.
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 32
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.
تبقى ملكية السفينة لمتعهد البناء، ولا تنتقل ملكيتها إلى طالب البناء إلا بقبول تسلمها بعد تجربتها، ما لم يتفق على غير ذلك.
- 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 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.