Introduction:

On 9 February, Egypt introduced new amendments to key maritime laws through the enactment of Law No. 2, Law No. 3, and Law No. 4 of 2025, impacting ship safety, maritime trade, and vessel registration. These amendments aim to enhance regulatory oversight, streamline registration processes, and enforce stricter compliance standards for vessels operating under the Egyptian flag.

Key Amendments:

1. Law No. 2 of 2025: Amendments to the Ship Safety Law (Law No. 232 of 1989)

• Flagging Requirements:
  • Newly built ships must have their designs and specifications approved by the relevant authority.
  • Foreign-registered vessels seeking to sail under the Egyptian flag must be twenty-five (25) years old or less (twenty (20) years for passenger ships).
  • Owners must submit vessel documentation and drawings for inspection before registering foreign vessels in Egypt.

• Exemptions: State-owned ships used for non-commercial purposes are exempt from certain conditions.

2. Law No. 3 of 2025: Amendments to the Maritime Trade Law (Law No. 8 of 1990)

• Conditions for Acquiring Egyptian Nationality for Ships:
  • A ship is considered Egyptian if registered in an Egyptian port and owned by an Egyptian individual or entity.
  • Bareboat-chartered foreign ships can operate under the Egyptian flag if leased by an Egyptian entity for at least two(2) years.
  • Majority ownership in co-owned ships must be Egyptian for the vessel to gain Egyptian nationality.
• Regulations for Ship Transactions:
  • All transactions transferring ownership or rights over ships must be notarised.
  • A registration fee of EGP 1(one Egyptian pound) per ton of gross tonnage, with a minimum fee of EGP 1,000(one thousand Egyptian pounds) and a maximum of 5% (five per cent) of total gross tonnage, is now applicable.
  • Payments must comply with Egypt’s non-cash payment regulations.

3. Law No. 4 of 2025: Amendments to the Ship Registration Law (Law No. 84 of 1949)

• Administrative Reforms:
  • The Egyptian Authority for Maritime Safety replaces the Port and Lighthouse Authority as the primary regulatory body.
  • The Minister of Transport is now the designated official for overseeing ship registration and safety compliance.
• Stricter Compliance and Penalties:
  • Shipowners must immediately notify authorities and return registration certificates if a ship sinks, burns, is captured, or is transferred to foreign ownership.
  • Unregistered ships sailing under the Egyptian flag may face fines up to EGP 1 million (one million Egyptian pounds) or confiscation.
  • Ships operating with invalid registration certificates may face fines up to EGP 500,000 (five hundred thousand Egyptian pounds).
  • Intentional tampering with vessel identification or documentation is subject to criminal penalties.
• New Leasing & Registration Requirements:
  • Owners leasing foreign vessels to Egyptian operators must provide proof of ownership and ensure compliance with Egyptian registration laws.
  • Shipowners may lease their vessels under a foreign flag for a minimum of two (2) years, provided they meet the necessary requirements.

If you have any questions, please do not hesitate to contact our team members, Hossam Gramon, Partner, Head of Banking & Project Finance, and Laila Shoukry, Managing Associate.