Emirates Shipping Association recently hosted a key industry event focused on sustainability, tax regulations, and compliance, drawing insights from industry leaders and experts.

The event, held on 17th October, opened with a compelling speech by Chairman Capt. Abdulkareem Almessabi, setting the tone for a morning of valuable insights into the future of shipping.

Leadership in Responsible Shipping

In his opening remarks, Capt. Abdulkareem Almessabi emphasised the importance of leadership in responsible shipping, particularly in safeguarding the industry’s long-term sustainability and reputation. He highlighted how leaders in the maritime industry must guide their companies through evolving challenges while ensuring their operations remain compliant and ethical. 

This strong message set the stage for a deeper exploration of tax, sanctions, and sustainable fuel choices as drivers of growth and innovation.

Corporate Tax: Adapting to Change

Capt. Rishi Nyati, Managing Director at Emarat Maritime, delved into the complexities of corporate tax in the shipping industry. He outlined the critical role that tax policies play in shaping the competitive landscape for shipowners. With shipping freight being subject to global supply and demand, Capt. Nyati explained how cost management, including tax optimisation, is key to maintaining competitiveness.

He compared how maritime tax incentives are structured across different regions, highlighting the UAE’s approach to corporate tax for ship-owning entities. Capt. Nyati also discussed potential disadvantages for UAE-based shipowners compared to those operating in free zones, calling for further clarifications to ensure a level playing field and promote Emirati participation in the maritime sector.

Sanctions and Compliance: A Key to Growth

David Savage, a Partner at HFW, explored the intricate web of international sanctions and how they impact the Middle Eastern shipping industry. His talk underscored that while compliance can often be seen as a burden or cost centre, it can also serve as a strategic differentiator.

Savage discussed how sanctions in the Middle East – primarily from the EU and US – create challenges but also opportunities for compliant companies to access new markets and mitigate risks. He emphasised the importance of due diligence in corporate documents, ownership structures, and financial risk, noting that adhering to regulatory frameworks can drive long-term sustainability and growth.

Furthermore, he highlighted how the UAE has been taking significant steps to strengthen its Anti-Money Laundering and Counter-Terrorism Financing regimes, making compliance not just a necessity but a competitive advantage.

Bunkering and Future Fuels: A Path Towards Sustainability

A panel discussion featuring Carlos Guerrero from Bureau Veritas and Jens Maul Joergensen from Oldendorff Carriers, moderated by Emirates Shipping Association’s Secretary-General Anders Østergaard, provided insight into the future of bunkering and the transition towards sustainable fuels. The conversation centred on the transformative shift to alternative fuels like LNG, methanol, ammonia, and biofuels.

Guerrero emphasised that while LNG infrastructure is already well-established, other fuel options are still in developmental stages, both technologically and commercially. Joergensen reinforced the need for global regulations to support this transition, advocating for policies that drive sustainability while ensuring economic viability.

Both experts noted that the maritime industry’s shift towards greener fuels is driven not only by regulatory requirements but also by economic incentives, as compliance with CII (Carbon Intensity Indicator) ratings becomes increasingly critical.

The panel concluded with a call for continued innovation and investment in alternative fuels, urging the industry to embrace this transition as an opportunity to redefine shipping in a way that ensures long-term sustainability and competitiveness.

In Summary

The event provided a comprehensive look at the future of the shipping industry, with a focus on how regulatory changes, compliance, and sustainable practices can be leveraged for growth. As the maritime sector faces increasing pressure to adapt to new challenges, the insights shared by the speakers underscored the importance of forward-thinking strategies that embrace innovation while navigating the evolving landscape of sanctions, tax, and fuel choices.

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