Implications of the New Maritime Law on Protection and Indemnity Clubs in the UAE

The recent enactment of the UAE Federal Maritime Law, No. 43 of 2023 (the “New Maritime Law”), which will come into effect on 29 March 2024, introduces amendments affecting the operations of Protection and Indemnity (P&I) clubs within the United Arab Emirates (UAE). Article 335 of this pivotal legislation enables cooperative insurance entities, notably P&I clubs, to establish branches in the UAE. These entities are also presented with the alternative to form partnerships or representation agreements with local insurance providers. Presumably, P&I clubs opting to function as foreign branches must conform to the insurance laws of the UAE, including the obligation of securing a bank guarantee amounting to AED 100 million for foreign branches involved in insurance activities.

The maritime industry is currently awaiting further details, expected to be come through executive regulations and specific resolutions, which will clarify the provisions of the New Maritime Law more comprehensively.

How can we help?

Our team at Al Tamimi & Company is monitoring these developments. With a commitment to providing expert guidance and support, we are well-prepared to assist you in adapting to the changes brought about by the New Maritime Law. For in-depth analysis and legal advice, we encourage you to engage with our maritime and insurance law specialists.