Egypt has introduced three significant legislative amendments affecting ship safety, registration, and commercial maritime operations. These changes, enacted on February 9, 2025, aim to strengthen regulatory oversight, enhance compliance, and modernize ship registration procedures. Below is a detailed summary of these amendments:
1. Amendments to Ship Safety Law (Law No. 2 of 2025)
Ministerial Oversight and Terminology Change
· The term “Minister of Maritime Transport” has been officially replaced with “Minister responsible for transport affairs” across Law No. 232 of 1989 and other related legislations.
New Conditions for Flying the Egyptian Flag on Ships
· Approval of New Builds: New ships or maritime units must have their designs and specifications approved by the competent authority and must be constructed under its supervision.
· Foreign-Registered Ships: Ships registered in a foreign jurisdiction and seeking Egyptian registration must meet the following criteria:
o General vessels: Must be no older than 25 years.
o Passenger ships: Must be no older than 20 years.
o The ship’s age is determined based on its permanent registration certificate from its original flag state.
· Pre-Registration Inspection: Before purchasing or leasing a foreign ship for Egyptian registration, plans and documents must be submitted to the competent authority for inspection and technical assessment at the owner’s expense.
Exceptions for State-Owned Vessels
· State-owned vessels used exclusively for non-commercial purposes are exempt from the two-year eligibility condition that applies to other ships seeking Egyptian registration.
Implementation Timeline
· The Minister responsible for transport affairs must issue the necessary executive regulations within three months of the law’s enactment.
· Until new regulations are issued, existing regulations will remain in effect, provided they do not contradict the amendments introduced by this law.
Effective Date
· The law officially took effect on February 10, 2025, the day after its publication in the Official Gazette.
· The legislation was signed into law by President Abdel Fattah El-Sisi on February 9, 2025.
2. Amendments to Commercial Maritime Law (Law No. 3 of 2025)
Revised Egyptian Citizenship Rules for Ships
· A ship must be owned or leased by an Egyptian individual or entity for at least two years to qualify for Egyptian nationality.
· If a ship is jointly owned, the majority ownership must be Egyptian.
New Registration & Financial Regulations
· All ship ownership and financial transactions must be documented in an official public record, or they will be legally void.
· New fees apply for transaction registration based on a ship’s tonnage.
· Payments must be made electronically, in compliance with Law No. 18 of 2019.
3. Amendments to Commercial Ship Registration (Law No. 4 of 2025)
Restructuring of Regulatory Bodies
· The Egyptian Maritime Safety Authority now oversees ship registration and safety, replacing the Ports and Lighthouses Authority.
Harsher Penalties for Violations
· Operating an unregistered ship under the Egyptian flag can lead to imprisonment (minimum three months) and fines up to EGP 1 million.
· Using a ship with expired registration can result in fines up to EGP 500,000.
New Leasing & Registration Rules for Foreign Ships
· Foreign ships leased for Egyptian registration must undergo a detailed approval process and submit extensive documentation.
· Egyptian-owned ships registered under a foreign flag require official permission from authorities.
· Temporary registration renewals must be approved by the Egyptian Maritime Safety Authority.
With the new compliance measures and increased regulatory oversight, ensuring proper registration, ownership structuring, and compliance is crucial for maritime businesses. Eldib & Co. is well-equipped to assist with ensuring compliance with Egyptian ship registration laws, handling ship leasing and ownership transactions, including document preparation, navigating the approval process for vessels operating under foreign flags, providing legal representation in case of disputes, fines, or compliance issues, liaising with Egyptian maritime regulators on behalf of our clients.
