In this Law, the following terms shall have the meanings assigned thereto, unless the context requires otherwise:
1. Law: Commercial Maritime Law.
2. Chairman: Chairman of the Board of Directors of the Public Transport Authority.
3. Authority: Public Transport Authority.
4. Regulations: Implementing Regulations of this Law.
5. Vessel: Any floating craft normally designed to operate in maritime navigation, even if it is not for profit, including vessel appurtenances which are necessary for its operation.
6. Marine Platform: A maritime facility used for the extraction of oil, gas, or other resources, and is considered a vessel under this Law.
7. Kingdom's Maritime Areas: The internal waters, territorial sea, contiguous zone, exclusive economic zone, and continental shelf, as defined by law.
8. Person: A natural or legal person.
9. Vessel Owner: A person who is listed as the owner of a vessel in a ship registry in the Kingdom.
10.Operator: A person who operates a vessel for his own account in his capacity as owner, charterer, or co-ownership manager; an owner shall be deemed an operator unless established otherwise.
11.Shipping Agent: A person who, in his capacity as the agent of the operator, carries out the activities related to supplying the vessel's needs.
12.Cargo Agent: A person who receives goods upon arrival on behalf of their owners and pays the freight if due, in whole or in part.
13.Carrier: A person who performs the carriage by agreement, by himself or through his deputy, with a consignor under a contract of carriage against payment, whether the carrier is the vessel owner, operator, or charterer.
14.Consignor: A person who has in his possession the goods intended for transport and who, by himself or through another person acting on his behalf, enters into a contract with a carrier or a transport operator for the carriage of goods from one place to another against payment.
15.Transport Operator: A person who is engaged in the carriage of goods by sea under a single contract and a single transport document, and who acts as principal.
16.Multimodal Transport Operator: A person who, by himself or through a person acting on his behalf, concludes a multimodal transport contract and acts as principal for the sender or carriers engaged in multimodal transport operations.
17.Master: A person who is qualified to command a vessel and assume responsibility for its management.
18.Crew Member: A person who is bound by a maritime contract of employment; the master shall be considered a crew member with respect to the work contract concluded between him and the operator.
19.Passenger: A person, other than the master, crew members, and other personnel on board, who is transported by a vessel.
20.Maritime Contract of Employment: A contract concluded between a vessel’s owner, operator, or a representative of either of them and any person to work on board in return for a wage.
21.Contract of Carriage by Sea: A contract under which a carrier undertakes to transport goods or persons by sea in return for a wage.
22.Multimodal Transport Contract: A contract concluded between a consignor and a multimodal transport operator for the carriage of goods by two or more modes of transport between two places located in one or more countries whereby the multimodal transport operator receives and keeps the goods in his custody until they reach the designated place of delivery, and he shall carry out this job by himself or through another person in return for a fee.
23.Bill of Lading: A document issued by a carrier at the request of a consignor upon his receipt of the goods, indicating transport data and conditions.
24.Multimodal Transport Document: A document establishing a multimodal transport contract, receipt of goods by a multimodal transport operator, and the operator’s obligation to deliver the same on specific terms.
25.Charterparty for an Equipped Vessel: A contract whereby a lessor undertakes to place a vessel that is seaworthy and fully equipped with supplies, crew members, and fuel at the disposal of the charterer for a specified period or for making one or several voyages.
26.Bareboat Charterparty: A contract whereby a lessor undertakes to place a vessel at the disposal of the charterer for a specified period without equipping it with supplies, crew members, or fuel.
27.Marine Insurance Contract: A contract whereby the insurer undertakes to compensate the insured for damage arising from a maritime risk in return for a premium.
28.Maritime Risks: Unexpected accidents that may occur during a voyage.
29.Unit of Account: A special drawing unit defined by the International Monetary Fund, denominated in riyal or its equivalent, as determined by the Ministry of Finance at the time of the payment of the claim.
30.Maritime Collision: A collision between two or more vessels or between a vessel and any maritime facility.
31.Maritime Rescue: Assistance provided upon request to a vessel in distress, to persons on board, or to objects transported thereby.
32.General Average: Any sacrifice or extraordinary expenditure, as determined by the master, which is intentionally and reasonably made or incurred for general safety to avert a serious risk that threatens the vessel or its cargo.
33.Particular Average: Any loss that is not subject to the provisions of general average.
34.Maritime Wreck: Any vessel, or part thereof, sunken or stranded within the Kingdom's maritime areas; or any items missing therefrom in the sea and were washed away by the current to such areas; or any vessel on the verge of sinking or is reasonably expected to sink or run aground in such areas, and there are no effective measures for assistance.
35.Oil: Crude oil, fuel oil (diesel), heavy diesel oil, lubricating oil, and other petroleum products.
36.Flag State: A state whose flag the vessel is entitled to carry.
37.State of Registration: A state where a vessel is registered with its ship registry.
38.Ship Registry: An official register where the information of ships and their owners are recorded.
39.Gross Tonnage: The dimensions of the total volume of a vessel, as measured in accordance with the provisions of the International Convention on Tonnage Measurement of Ships of (1969) and its amendments.

The provisions of this Law shall apply to Saudi vessels and foreign vessels that anchor at the Kingdom's ports or maritime areas, with the exception of warships, public service vessels for non-commercial purposes, and vessels
subject to a special provision, except for cases relating to collision, rescue, and general average.

Subject to the provisions stipulated in this Law, the provisions of movable property shall apply to the vessel, except for ownership by possession and cases subject to a special provision.

A vessel shall acquire Saudi nationality if it is registered in one of the Kingdom’s ports and is wholly owned by a Saudi national. In case of co-ownership, the majority of shares must be owned by a Saudi national. The Chairman may amend the percentage of ownership in accordance with the Kingdom's economic interests.

A Saudi vessel shall fly the flag of the Kingdom, and shall not fly the flag of any other state except in cases permitted by maritime custom or for avoiding serious risk or capture.

Non-Saudi vessels shall not practice towage, pilotage, or supply services in the Kingdom's maritime areas, nor engage in coastal navigation between the Kingdom's ports. The Chairman may, by way of exception, license such vessels to engage in one or more of such activities for a specific period.