Article 4 of the Saudi Commercial Maritime Law
المادة 4 من النظام البحري التجاري · الفصل الثاني: جنسية السفينة
Article 4 requires, for a ship to acquire Saudi nationality, registration in a Kingdom port and full ownership by a Saudi, or a Saudi majority of shares in co-ownership, and allows the Chairman to adjust the ownership percentage.
Official text (Arabic)
This article has not been amended since the law was issued.
تكتسب السفينة الجنسية السعودية إذا كانت مسجلة في أحد موانئ المملكة، وكانت مملوكة بكاملها لشخص يتمتع بهذه الجنسية. وإذا كانت السفينة مملوكة على الشيوع اشترط أن تكون أغلبية الحصص مملوكة لمن يتمتع بهذه الجنسية، وللرئيس تعديل نسبة التملك بما يتفق مع المصلحة العامة لاقتصاديات المملكة.
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 4 explained in plain English
This article sets the conditions for a ship to acquire Saudi nationality:
First condition: registration in one of the Kingdom's ports.
Second condition: ownership, which differs by its type:
- Individual ownership or ownership by one person: the ship must be owned entirely by a person who holds Saudi nationality. Under Article 1, a person includes both natural and legal persons.
- Co-ownership: the majority of the shares must be owned by those holding Saudi nationality.
Power to adjust: the Chairman may adjust the ownership percentage in line with the public interest of the Kingdom's economy. The article does not specify the limits of this adjustment.
The practical meaning is that a non-Saudi partner can own a share in a Saudi ship held in co-ownership, provided the majority remains with Saudis according to the applicable percentage, and that nationality depends on both conditions together: registration and ownership. Nationality has effects under other articles, such as Article 5, which requires every Saudi ship to fly the Kingdom's flag.
Anyone planning to own a ship in partnership with foreign parties can consult a lawyer specializing in commercial and investment cases.
Practical example
Three partners own a cargo ship in co-ownership: two Saudis own 60% and a foreigner owns 40%. If it is registered in one of the Kingdom's ports, it meets the condition of a Saudi majority of shares to acquire Saudi nationality.
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 4 of the Saudi Commercial Maritime Law
When does a ship acquire Saudi nationality?
If it is registered in one of the Kingdom's ports and is entirely owned by a Saudi, or if a majority of its shares belong to Saudis when it is held in co-ownership.
May a foreigner own a share in a Saudi ship?
In co-ownership, the majority of the shares must belong to Saudis, and the Chairman may adjust the ownership percentage in line with the public interest.
More articles on Scope of the Maritime Law and Ship Nationality
- Article 1
Article 1 defines 39 terms on which the Commercial Maritime Law is built, such as the ship, operator, carrier, shipper, bill of lading, master, seaman, marine insurance, wreck and unit of account.
لأغراض هذا النظام, يقصد بالمصطلحات الآتية المعنى المبين أمام كل منها, ما لم يقتضِ السياق خلاف ذلك: 1- النظام: النظام البحري التجاري. 2- الوزير: وزير النقل، رئيس
- Article 2
Article 2 sets the scope of the Commercial Maritime Law: Saudi ships and foreign ships anchored in the Kingdom's ports or maritime zones, excluding warships and public service ships except for collision, salvage and general average.
تطبق أحكام هذا النظام على السفن السعودية, والسفن الأجنبية التي ترسو في موانئ المملكة أو مناطقها البحرية, وتستثنى من ذلك السفن الحربية, وسفن الخدمة العامة المخصص
- Article 3
Article 3 applies the rules on movable property to ships, subject to the provisions of the law, except the rule on acquiring movables by possession and anything covered by a special provision.
مع مراعاة الأحكام المنصوص عليها في النظام, تسري على السفينة أحكام المال المنقول عدا حكم تملكه بالحيازة, وما ورد في شأنه نص خاص.
- Article 5
Article 5 requires every Saudi ship to fly the Kingdom's flag and permits flying another flag only where maritime custom allows, or to avoid certain danger or capture.
على كل سفينة سعودية أن ترفع علم المملكة, ولا يجوز لها أن ترفع علماً غيره إلاَّ في الحالات التي يجري فيها العرف البحري، أو إذا كان الغرض هو تجنب الوقوع في خطر مح
- Article 6
Article 6 limits towing, pilotage, supply services in the Kingdom's maritime zones and coastal transport between its ports to Saudi ships, and lets the Chairman exempt other ships by a license for a set period.
لا يجوز لغير السفن السعودية ممارسة نشاط القَطْر أو الإرشاد أو القيام بخدمات التموين في مناطق المملكة البحرية، ولا يجوز لها مزاولة أعمال النقل الساحلي بين موانئ
- Article 93
The liability of the ship's owner is limited in accordance with the international conventions on limitation of liability for maritime claims to which the Kingdom has acceded.
تحدد مسؤولية مالك السفينة طبقاً للاتفاقيات الدولية المتعلقة بتحديد المسؤولية عن المطالبات البحرية التي انضمت إليها المملكة.
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.