Legal Insights: New Legislative Amendments Enhance Egypt’s Maritime Sector and Ship Registration
Egypt continues to make significant strides in transport and logistics, strengthening its position as a key global trade hub. In alignment with national policies to attract local and international investment—particularly in maritime transport—recent legislative amendments have introduced pivotal changes to the conditions for vessels acquiring Egyptian nationality and raising the Egyptian flag. These amendments include:
Expanded Eligibility for Egyptian Nationality: Two new provisions allow foreign vessels to acquire Egyptian nationality:
When a foreign vessel is chartered on a bareboat basis by an Egyptian natural or legal person for a period of at least two years.
When a foreign vessel is chartered under a financial lease to an Egyptian natural or legal person, in which case the vessel retains its Egyptian nationality throughout the lease period.
Revised Registration Fees: Fees for registering ownership transactions or in-kind rights related to vessels are now set at EGP 1 per gross registered ton (GRT), with a minimum fee of EGP 1,000 and a maximum cap at one-fifth of the total GRT.
Flagging Age Limits: Vessels must be no older than 25 years to fly the Egyptian flag, while cruise ships must not exceed 20 years.
Temporary Foreign Flag Registration: Egyptian shipowners may suspend their vessel’s Egyptian registration for a bareboat charter exceeding two years, allowing temporary registration under a foreign flag for the charter’s duration.
These amendments create a more attractive investment climate for Egyptian shipowners and maritime operators, offering tangible benefits such as reduced registration fees and enhanced incentives for vessel registration under the Egyptian flag.
Our firm was honored to contribute to the legal discussions that shaped these amendments, culminating in the enactment of these pivotal legislative changes. These measures are expected to invigorate Egypt’s maritime sector, expand the national fleet, and reinforce the country's position in global trade.
The implementing regulations for these amendments are anticipated within three months, to be issued by the competent minister. We will continue to monitor developments and provide expert guidance to stakeholders navigating these new opportunities.
