Yachting in the Kingdom of Saudi Arabia

The dramatic coastline of the Kingdom of Saudi Arabia and in particular the Red Sea, with its crystal-clear waters and vibrant marine life is attracting a growing number of yachting enthusiasts and Saudi Arabia is determined to make its mark on the luxury yachting scene.

With Saudi Arabia’s Vision 2030 initiative providing the driving force behind the diversification of their economy, including through the promotion of tourism, Saudi Arabia has seen significant investment in maritime and tourism infrastructure. Developments include the state-of-the-art facilities and yacht club under construction at Sindalah Island, which aim to attract and service the needs of the world’s most discerning yacht owners and charter guests.

As with all destinations, Saudia Arabia has in place a range of local laws applicable to the operation of large yachts. It is essential that these be understood and complied with by anyone wishing to enjoy the territorial waters of Saudi Arabia. 

In particular, attention should be paid to the Large Yacht Chartering Regulations (the Charter Regulations) published by the Saudi Red Sea Authority (the SRSA) in September 2024¹. The Charter Regulations aim to both facilitate and regulate the commercial operation of internationally registered yachts 24 meters or more in length within the territorial waters of Saudi Arabia in the Red Sea. Separate rules apply to the operation of large yachts in the territorial waters of Saudi Arabia in the Persian Gulf.

The Charter Regulations establish the conditions for issuing charter permits and aim to ensure the safety of those on board and the protection of the environment. They are set to play a key role in the development of a sustainable yachting industry within Saudi Arabia. 

Maritime Tourism Agent

Prior to the commencement of any charter activity in the Saudi Arabian Red Sea by a yacht to which the Charter Regulations apply, the yacht’s owner or technical manager must engage a licensed Maritime Tourism Agent. The Maritime Tourism Agent shall be responsible for overseeing the chartering process, facilitating marina access and ensuring compliance with technical and safety protocols under the Charter Regulations.

Tourism Charter Permit

In addition, before a yacht may begin its first charter, the Maritime Tourism Agent must obtain a charter permit. The charter permit, once issued, is valid for six months, subject to prior suspension or cancellation by the authorities as a result of a breach of the Charter Regulations or terms of the permit.

A range of further tourism and navigational licences will also need to be obtained from the relevant competent authorities.

Environmental protection and safety compliance

The Charter Regulations require yachts to which they apply to adhere to high safety and environmental standards. These include, amongst other things, restrictions on anchoring in coral reefs and safe manning requirements.

Conclusion

The commercial operation of large yachts in Saudi Arabia, whilst being actively encouraged by the local authorities, remains complex. It is important that anyone considering such activity be fully aware of all applicable rules and regulations before their yacht enters the territorial waters of Saudi Arabia. For those doing so for the first time, in addition to the appointment of a Maritime Tourism Agent, it may be prudent to retain the services of appropriately experienced local counsel to ensure compliance.

Footnote

1. Large Yacht Chartering