The Saudi Red Sea Authority has signed a memorandum of understanding with the Maritime and Corporate Registries of the Marshall Islands on the sidelines of the Monaco Yacht Show. The agreement aims to enhance the Red Sea’s appeal to private yacht owners and expand organized yacht chartering options, supporting the growth of yachting tourism and creating broader investment opportunities in marinas, navigation services, and related marine tourism activities.
The authority was represented at the signing by Mohammed bin Issa Al-Ghamdi, Acting Executive Vice President of Coastal Tourism Management. Joe Assel, Executive Director of Commercial Yachting at the Maritime and Corporate Registries of the Marshall Islands, represented the company.
Yacht Engaged in Trade
The MoU includes recognition of the Yacht Engaged in Trade (YET) program for private yachts operating commercially within the Kingdom’s geographic waters. The program allows eligible private yachts to be chartered for limited periods while retaining their private registration, without the need to convert it to commercial registration, subject to approved requirements and conditions.
The program’s main benefit is that it reduces the procedural burden and costs associated with changing a yacht’s registration. It also enables owners to access chartering opportunities under clear regulations while maintaining the highest safety standards. Its implementation is expected to increase the supply of yachts available for charter, provide visitors with more diverse options, and strengthen the ability of coastal destinations to attract regional and international yachts.
The anticipated economic impact extends to activities serving yachts, their owners, and their guests. Attracting more yachts is expected to increase demand for marina berths, maintenance and repair services, supplies, and refueling, while also stimulating spending on accommodation, hospitality, restaurants, entertainment, and transportation. This demand would help raise marina occupancy rates, improve the use of existing marine infrastructure, and enhance returns on related investments.
The growth of the sector will also create wider opportunities for private companies to operate, charter, and manage yachts and provide supporting services. This, in turn, will contribute to creating direct and indirect jobs in navigation and marine tourism and increase the benefits coastal destinations derive from the expansion of the yachting sector.
The MoU also provides for the exchange of knowledge and expertise and cooperation in reviewing best practices in safety, environmental sustainability, marine protection, and support for the yachting industry. The two parties will coordinate their cooperation through designated representatives and regular meetings to monitor progress and support the adoption of international practices in developing the sector.
The agreement reflects the authority’s efforts to create a regulatory environment that responds to the needs of yacht owners and operators while linking the facilitation of commercial activities to compliance with safety and marine environmental protection requirements.
Through its international partnerships, the Saudi Red Sea Authority continues to expand opportunities for coastal tourism, strengthen the Red Sea’s competitiveness as an attractive yachting destination, diversify the economy, and increase tourism’s contribution to gross domestic product in line with the objectives of Saudi Vision 2030.
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