How Dubai can reinforce its maritime excellence with ship-owners scrambling


With various reports of ship-owners being restricted against defending the arrest order against their vessels in Dubai, the city must lean on its reputation of innovation to turn the tide

By: Marasi News Editorial Team

Dubai’s reputable status as a leading maritime hub has been developed through consistent innovation, and the willingness to adapt in order to meet the industry’s needs. In order to maintain this stature and ultimately elevate its ranking even further, this requires complacency in this realm to be stringently avoided.

As of late, multiple international publications have reported on ship-owners being the denied right to defend the arrest order against their vessels in Dubai.

Recent Court rulings in the Emirate of Dubai have granted creditors the arrest order of the vessel for the debt owed by and due against the charterer. This allows creditors to enforce the rulings against the charterers on the vessel itself or on the amounts deposited by the ship-owners to the court for the lifting the arrest order.

International publications also reported on Court Rulings issued in the Emirate of Dubai. These rulings stipulate that ship-owners cannot appeal against rulings that are executed on the vessel or on the amounts deposited by the ship-owners. According to Mohamed El Hawawy, Partner at Ince Dubai, “These rulings were issued initially as judgments against the charterers. As a result, ship-owners could not oppose these rulings, even though the rulings are to be executed against the vessel itself or on the amounts deposited by the ship-owners.”

As with anything, open-mindedness is necessary to evolve and progress forward. This is especially true for the Emirate of Dubai, particularly with ship-owners presently unable to appeal against these rulings, leaving them exposed to the risk of having their vessels sold at auction without being able to defend or object measures being taken against their assets.

Thus, Dubai’s decision to promptly address these concerns of ship-owners will reinforce the city’s renowned maritime competitiveness, and accordingly reflect the forward-thinking mindset which the country has become increasingly known for when it comes to implementing solutions that prove beneficial for the entire maritime industry.