Saudi Arabia signs the establishment of a system that makes the judicial sale of ships internationally enforceable

The Kingdom has signed the draft “United Nations Convention on International Antiquities for the Judicial Sale of Ships”, to be at the forefront of the signatories to the agreement, which aims to establish a system that makes the judicial sale of ships internationally enforceable, while preserving the internal legislation that regulates the judicial sale procedures.

The Cabinet had agreed to authorize His Excellency the Minister of Commerce, Chairman of the Board of Directors of the National Center for Competitiveness – or his representative – to sign the United Nations Convention on International Antiquities for the Judicial Sale of Ships, during its session held on 2/13/1445 AH, corresponding to 8/29/2023 AD. .

The Kingdom was represented at the signing of the draft agreement today in the Chinese capital, Beijing, by Dr. Iman bint Habbas Al-Mutairi, Deputy Minister of Commerce and CEO of the National Competitiveness Center.

The draft agreement seeks to ensure legal certainty with regard to the right of ownership that the buyer acquires in the ship during its international navigation, in addition to providing a basic rule that the judicial sale that takes place in a state party to the draft agreement has the same effect in all other party states, in addition to the draft agreement including rules It shows how to enforce the judicial sale after its completion, including the cancellation of the ship’s registration in the Registry of Ships, and the prohibition of seizing the ship due to a claim arising from rights or interests prior to the judicial sale, in addition to granting the courts of the country of the judicial sale exclusive jurisdiction to consider appeals related to the judicial sale.

The Kingdom’s accession to the agreement comes after its study of the issues discussed by the working groups of the United Nations Commission on International Trade Law (UNCITRAL), specifically the Sixth Working Group, in which Saudi experts representing the Ministries of Foreign Affairs, Justice, Trade, Transport and Logistics Services, Investment, and the General Authority for Establishments participated in its work. Small and medium-sized enterprises «Monshaat», the Saudi Center for Commercial Arbitration, and the Bankruptcy Committee represented in the membership of the Permanent Coordinating Committee headed by the National Center for Competitiveness, which is concerned with facilitating communication between the Kingdom and the United Nations Commission on International Trade Law “UNCITRAL” and its working teams, in addition to working in integration with the authorities Government to develop and prepare the commercial legal environment in the Kingdom, in line with the best international practices adopted.

It is noteworthy that the draft agreement adopted by the United Nations General Assembly during its 77th session last December is a closed system, as it applies only between the states parties to it, in addition to that it is not a substitute for other grounds for enforcing judicial sales within the states parties.

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