• In what circumstances can a claimant arrest a vessel in the UAE?

• Would the UAE Courts arrest a vessel if the debtor's only asset is the vessel and
      the debt is not a maritime debt?

• Would it be possible to arrest a sister vessel in the UAE?

• How would an application for arrest of a vessel be made in the UAE?

• Would the UAE Courts order the arrest of a vessel if the vessel was outside the port?

• How much in fees is payable for the arrest of a vessel in the United Arab Emirates?

• Would the plaintiff have to put up security for obtaining an order for arrest of a vessel?

• How would the owner of a vessel be able to obtain the release of the vessel
      that has been arrested by order of a UAE court?

• Would the plaintiff have to take any further action to secure the arrest
      order obtained from the court?

• Would the UAE Courts have jurisdiction to grant an order for arrest of a vessel
      even if the UAE Courts have no jurisdiction on the merits?

• Who has to pay the port charges and the crew wages when a vessel is arrested?

In what circumstances can a claimant arrest a vessel in the UAE?
An arrest of a vessel will be granted by the relevant UAE Court in accordance with Article 115 of the UAE Maritime Code subject to the following conditions:
Article 115
1. It shall be permissible to effect a preservatory arrest against a vessel by an order of the civil court having jurisdiction. Such an arrest shall not be made save for the satisfaction of a maritime debt.

2. The expression "maritime debt" shall mean a claim in respect of a right arising out of any of the following causes:-
        a. Damage caused by the vessel by reason of a collision or otherwise .
        b. Loss of life or personal injuries occasioned by the vessel and arising out of the use thereof.
        c. Assistance and salvage.
        d. Contracts relating to the use or exploitation of the vessel under a charter party or otherwise.
        e. Contracts relating to the carriage of goods under a charter party, bill of lading,
            or other documents.
        f . Loss of or damage to goods or chattels being carried on board the vessel
        g. General average.
        h. Towage or pilotage of the vessel.
        i. Supplies of products or equipment necessary for the utilization or maintenance of the vessel,
            in whichever place the supply is made.
        j. Construction, repair or fitting out of the vessel, and costs of it being in dock.
        k. Sums expended by the master, shippers, charterers or agents on account of the vessel or on
            account of the owner thereof.
        l. Wages of the master, officers and crew, and other persons working on board the
            vessel under a contract of maritime employment.
        m. A dispute as to the ownership of the vessel.
        n. A dispute in connection with the co-ownership of the vessel, or with the possession
             or use thereof, or with the right to the profits arising out of the use thereof.
        o. A maritime mortgage.

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Would the UAE Courts arrest a vessel if the debtor's only asset is the vessel and the debt is not a maritime debt?
The UAE Courts will not grant an arrest over the ship if the debt is not a "maritime debt" even if the ship was the only asset owned by the defendant unless the defendant is declared bankrupt or an order for bankruptcy is obtained from the court.

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Would it be possible to arrest a sister vessel in the UAE?
Article 116 of the Maritime Code acknowledges the fact that the creditor may arrest a sister vessel owned by the vessel owner who has incurred the debt, provided that the two vessels were owned by the same party at the time when the debt arose. The plaintiff, however, is often requested by the UAE Courts to prove that both vessels are owned by the same entity to obtain an order for arrest. A confirmation from Lloyds Register of Shipping is generally considered accepted evidence for this purpose. Such an order will not be granted if the vessel is managed by the same manager or if the registered owners are two different companies (even if they are "associated" companies).

Further, the court will not grant an arrest on a sister vessel if the debt arose out of a dispute over the ownership of the vessel or for money due as a result of investing in a vessel, or if the debt arose pursuant to a mortgage on the vessel (Articles 115 (2) (m) (n) and (o)).

If the vessel was under a demise charter, the claimant may arrest the same vessel operated by the charterer or any other vessel owned by the charterer (Article 117 of the Maritime Code). However, evidence of such link must be filed in court at the time of the arrest application.

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How would an application for arrest of a vessel be made in the UAE?
An application must be made to the relevant court requesting the arrest of the vessel and showing a "prima facie" claim, the evidence that the debt is due and that such debt is a "maritime debt" (see Article 115 (1)) which has not been paid together with the following documents:-
        a. A notarized and legalised Power of Attorney ("POA"), including subsequent consularisation
         from the UAE Embassy where the POA originated, is required if it was signed in a foreign
         jurisdiction. Such POA may be granted in favour of one or more local advocates.

        b. All the relevant documents proving the debt together with an Arabic translation of each
         document by an authorized legal translator.

         c. Evidence of the fact that the vessel is a sister vessel to that upon which the debt
         arose if an arrest is requested against a sister vessel.

         d. Payment of the appropriate court fees.

The arrest application supported by the relevant documents will then be put before the duty judge on the day in question, who will award or refuse an order for the arrest of the vessel. Normally the arrest of the vessel will be granted or refused on the same day and can be enforced on the vessel on the same day the order was awarded. Normally, in Dubai, a court bailiff from the court will serve notice for arrest on the Port Authority or the Marine Police at the Port Authority advising them of the order to arrest the vessel and detain the vessel from leaving the port. However, this procedure may vary in different emirates. In Fujairah for example, the Coastguard is responsible to inform the vessel arrested and confiscate the ship's documents as a means of ensuring the vessel cannot leave from the Fujairah Anchorage. Although the arrest order is served on the relevant authority on the same day, administrative delays do sometimes occur.

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Would the UAE Courts order the arrest of a vessel if the vessel was outside the port?
It would be possible to obtain an order to arrest the vessel outside the port if the vessel is anchored outside the port. In some emirates however, a separate application may have to be made to the judge to write to the UAE Coastguard in the emirate in question to assist in arresting the vessel. In such a case, the coast guard will assist the relevant port authority with the arrest order, provided the vessel is within the 12 mile territorial limit of the UAE waters.

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How much in fees is payable for the arrest of a vessel in the United Arab Emirates?
The court fees for arrest differ from one emirate to another and it often depends on the amount claimed. In Dubai and Ras Al Khaimah, the court fees payable are 3.75% of the value of the claim with a maximum of Dhs. 15,000/-. In Federal Courts namely, Abu Dhabi, Sharjah, Ajman, Fujairah and Umm Al Quwain, the Court fees will be based on 5% of the amount claimed with a maximum of Dhs. 10,000/-. These amounts are in addition to the fees for the "main action" (otherwise known as "substantive action") (see below) which must be filed within 8 days of a successful arrest application.

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Would the plaintiff have to put up security for obtaining an order for arrest of a vessel?
Since 1992, the UAE Courts do not normally require a bank guarantee or any kind of security against wrongful arrest to award an order for the arrest of a vessel. The court will consider the arrest on its merits based on the documents provided in support of the arrest application, and no security will usually be required to grant an order for arrest.

However, on some occasions the court may require some form of security before granting an order for arrest. Such security is at the discretion of the judge hearing the arrest application. Security in the form of a bank guarantee or letter of undertaking should only be filed if requested by the judge.

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How would the owner of a vessel be able to obtain the release of the vessel that has been arrested by order of a UAE court?
The owner of a vessel, through their local agent, the vessel's Master or their local advocate, may apply to the court immediately following the arrest objecting to the arrest proceedings. The court will then schedule a hearing on an urgent basis to hear the objection filed by the owner of the vessel. However, it will normally take weeks (and sometimes several months) before a judgment is given by the court on the objection application filed by the owner against the arrest order. In the meantime, the vessel will be detained under arrest until a judgment is given by the court on the objection filed or security provided for the release of the vessel (please see below). If the objection is dismissed and the arrest is upheld, the owner may appeal against the decision to the appeal court. However, if the arrest is lifted following the dismissal of the objection filed, the arrest will usually be lifted on the same day even if an appeal is filed by the plaintiff.

It is advisable on most occasions that the owner of a vessel prepare a bank guarantee or other acceptable security to the court to guarantee the claim in order to secure the immediate release of the vessel (see Article 118 (3) of the Maritime Code). Even with a bank guarantee filed with the court, the owner of a vessel may object to the arrest proceedings. Filing a bank guarantee is advisable to secure immediate release of the vessel given the delays that can ensure in filing objection proceedings.

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Would the plaintiff have to take any further action to secure the arrest order obtained from the court?
It is required by law that within 8 days from the date on which the arrest is served on the vessel or port authority detaining the vessel, the plaintiff file a "main action" or "substantive" proceedings before the court. If the plaintiff fails to file a main action within 8 days, the arrest order will be null and void. In the main action, the plaintiff will have to request a judgment for the amount claimed plus an order to uphold the attachment proceedings as valid.

Court fees will be payable for the main action of 7.5% with a maximum of Dhs. 30,000 in Dubai and Ras Al Khaimah, and 5% with a maximum of Dhs. 10,000/- in the Federal courts that is, Abu Dhabi, Sharjah, Ajman, Umm Al Quwain and Fujairah.
If no separate application objecting to the arrest proceedings is filed, the arrest (attachment) proceedings file will be joined to the main action to be considered jointly. If judgment is delivered in favour of the plaintiff in the main action, it is most likely that the attachment proceedings will be upheld and the vessel will stand as security for payment of the amount judged as due in the main action. However, if the main action is dismissed, the attachment proceedings will also be lifted.

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Would the UAE Courts have jurisdiction to grant an order for arrest of a vessel even if the UAE Courts have no jurisdiction on the merits?
According to a recent judgment delivered by the Dubai Court of Cassation, it is now possible to obtain an order for attachment even if the UAE Courts have no jurisdiction on the merits or if the party has agreed upon foreign arbitration in the relevant contract. This is provided that following the attachment the plaintiff provides evidence that he has initiated an action in the foreign jurisdiction or has proceeded with the arbitration proceedings according to the parties' agreement.

"Arrest for security only" pending judgment in foreign proceedings, whilst possible in accordance with the UAE Civil Procedure Code, is not well established in practice, and remains an uncertain area of law.

According to Article 122 of the UAE Maritime Code, the UAE Courts will have jurisdiction to arrest a vessel in one of the following conditions:
        a. If the claimant has its usual place of residence or head office in the state.
        b. If the maritime debt arose in the state.
        c. If the maritime debt arose on a voyage during which the arrest was effected on the vessel.
        d. If the maritime debt arose out of a collision or assistance over which the court has jurisdiction.
        e. If the debt was incurred by a maritime mortgage over the arrested vessel.
            The above must be read in conjunction with the rules on international and domestic
             jurisdiction setout in the Civil Procedure Code 1992.

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Who has to pay the port charges and the crew wages when a vessel is arrested?
Normally, the court will not make any order or request security for the port charges or the crew wages. Such charges will accumulate against the vessel and the owner will be liable for the same during the time period of the arrest and the main action proceedings.

The port authority and the crew may then, in priority to other creditors under Articles 84 (a) and (b) of the Maritime Code, share any proceeds of any subsequent judicial sale if the vessel is auctioned to satisfy a judgment delivered by the court following arrest proceedings.

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