UAE President issues new law on regulation and development of industry
His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the UAE, issued Federal Decree-Law to support the organization and development of the national industrial sector by increasing the flexibility to adopt more supportive policies and provide incentives. The law effective as of January 2023 aims to be a key enabler for the industrial sector, increase its investment attractiveness, and encourage local and foreign investment in industrial activities, in coordination with federal and local authorities.
The new law will be applicable to all industrial activities in the country, including free, economic, and specialized zones. It allows the creation of a package of incentives and enablers for the industrial sector that supports national strategic objectives to increase industrial competitiveness including the establishment of a national industrial registry featuring an integrated database of industrial projects detailing their contributions to the national economy. The database also supports manufacturers with feasibility studies and the evaluation of potential investment opportunities.
The decree-law enhances the role of the Ministry of Industry and Advanced Technology (MoIAT) in promoting investment in the UAE, as well as in the adoption of advanced technologies and Fourth Industrial Revolution solutions. MoIAT will play an expanded role in developing future industries and stimulating innovation and R&D in line with the National In-Country Value Program.
The law also supports the goals of international agreements in which the UAE participates, such as those of the World Trade Organization. The decree-law will replace Federal Law No. 1 of 1979 on industry regulation. It will enhance integration between MoIAT, local economic departments and licensing authorities in free, economic, and specialized zones by standardizing the process for issuing industrial licenses. MoIAT will work with its partners from the Industrial Development Council to complete the executive regulations and organize information workshops for manufacturers about the law.
Through the industrial registry, the law will support a number of sectors including, medicine, food, and medical and agricultural technology. It will also strengthen some of the nation’s most competitive industrial sectors, such as petrochemicals, iron, aluminium and plastics, while stimulating future industries, most notably the hydrogen and aerospace sectors.
The decree supports the Make it in the Emirates initiative launched by MoIAT to enhance the role of the private sector, and attract industrial investors through various incentives and competitive advantages such as legislative and regulatory frameworks, logistical capabilities, financing solutions, export opportunities, comprehensive economic partnership agreements (CEPA), bilateral trade agreements, and advanced technology adoption.
The decree outlines the obligations of industrial facilities when acquiring an industrial license. It also defines the mandatory controls, specifications and standards issued by the Ministry and in accordance with the procedures and controls specified by the executive regulations of the law. In coordination with the relevant government entities, the MoIAT aims to promote a sustainable economy in the fields of raw materials, circular economies, and recycling waste.