Formation and Legal Effects of Maritime Mortgages under Saudi Law
This study examines the formation and legal implications of maritime mortgage contracts under the Saudi legal system, highlighting their significance as security mechanisms within the maritime sector. It explores substantive requirements, including the lawful subject matter and legitimate creditor i...
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| Format: | Electronic Article |
| Language: | English |
| Published: |
2024
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| In: |
International journal of criminal justice sciences
Year: 2024, Volume: 19, Issue: 1, Pages: 498-518 |
| Online Access: |
Volltext (kostenfrei) |
| Check availability: | HBZ Gateway |
| Keywords: |
| Summary: | This study examines the formation and legal implications of maritime mortgage contracts under the Saudi legal system, highlighting their significance as security mechanisms within the maritime sector. It explores substantive requirements, including the lawful subject matter and legitimate creditor interests, alongside formal stipulations such as notarisation and registry enrolment to ensure enforceability against third parties. Employing a comparative legal analysis, the study evaluates Saudi legislation in relation to international conventions and regional frameworks, including those of Egypt, the UAE, and Bahrain, to identify regulatory strengths and shortcomings. The findings, as presented in the table, indicate that Saudi law aligns with or exceeds international standards in areas such as mortgagor covenants (e.g., usage restrictions) and mortgagee remedies (e.g., priority claims). Nevertheless, procedural issues remain, particularly in the domains of electronic registry utilisation, procedural frameworks, and creditor enforcement mechanisms. According to what the current study suggests, if carried out properly, improvements to the legal requirements for recognition, registration, and creditor rights might bring down legal risks and throw their weight behind sector investments by an estimated percentage ranging from 20-40%. The significance of maritime mortgage systems lies in its standing up for the interests of creditors and in giving a boost to investment and stability in the marine industry, two aspects that are brought to light by this study. In order to keep an eye on creditors better, it is suggested in this study that i) a single electronic registry for marine affairs be put in place, ii) the regulations governing pledge cancellations be cleared up, and iii) enforcement rights be emboldened. By virtue of pushing for greater global competitiveness, these policies seek to serve three main purposes: i) supporting Saudi maritime legislation, ii) looking out for the interests of domestic players, and iii) making headway toward meeting the Vision 2030 goals. |
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| ISSN: | 0973-5089 |
