The maritime sector has played a pivotal role in the UAE’s economic growth for decades, with Dubai at its forefront. The establishment of Jebel Ali Port and the Dubai Dry Docks in the 1970s laid the foundation for Dubai to become the Middle East’s maritime hub, akin to Singapore’s role in Asia. Jebel Ali not only ranks among the world’s top 10 ports by traffic volume but also houses over 6,000 companies in its Free Zone, bolstering Dubai’s status as the region’s logistical epicenter.
However, Jebel Ali’s nature as a Free Zone with limited access to the UAE internal market has primarily focused the maritime sector on transshipment and offshore servicing. What’s been missing is the development of a UAE shipping registry commensurate with Jebel Ali’s significance. Efforts have been made to strengthen Dubai’s maritime standing, with the Dubai Maritime City Authority at the forefront. This includes the establishment of the Emirates Maritime Arbitration Centre in 2016, a specialized dispute resolution platform for the shipping industry, aligning with best practices from centers like London, Singapore, and New York.
While the Emirates Maritime Arbitration Centre gains recognition as an international forum, the absence of a shipping registry that allows UAE-flagged vessels to attract foreign investment remains a crucial gap. Previously, stringent restrictions under Article 14 et seq of the UAE Maritime Code confined UAE-flagged vessels to entities or individuals wholly owned by UAE nationals, limiting the registry’s size compared to other similarly important hubs.
As part of broader efforts to encourage foreign investment in the UAE, the maritime sector is listed in the “Positive List” of sectors to open up to 100% foreign ownership. It is widely anticipated that the new draft Maritime law will turn this into a reality this year. This move not only promises growth for the UAE Shipping Registry and increased government revenue but also creates opportunities for foreign maritime capital to establish a presence onshore. Considering the entrepreneurial strength of foreign investment in the Jebel Ali Free Zone, this development is warmly welcomed, particularly in the post-COVID-19 era, where competition for investment is intensifying.
Team YAQUTS