UAE President issues new industrial regulation and development law

President Sheikh Mohammed on Wednesday issued Federal Decree No. 25 of 2022 on the regulation and development of the industrial sector.

The UAE government said in a statement on Wednesday that the new law was introduced to support the organization and development of the country’s industrial sector by increasing the flexibility to adopt more supportive policies and provide incentives.

“The law aims to be a key enabler of the industrial sector, increasing its investment attractiveness and encouraging local and foreign investment in industrial activity, in coordination with federal and local authorities,” the statement said.

The new decree will come into force in January 2023 and will apply to all industrial activities in the country, including free zones, economic zones and specialized zones.

permitted by law Industrial sector Support the national strategic goal of improving industrial competitiveness. This includes the establishment of a national industrial registry containing a comprehensive database of industrial projects detailing their contribution to the national economy.

The decree strengthens the role of the government Ministry of Industry and Advanced Technology Facilitate investment in the UAE, and the adoption of advanced technologies and Fourth Industrial Revolution solutions. The ministry will play a greater role in developing future industries, stimulating innovation and research and development under the National Domestic Values ​​Plan.

“The new laws regulating and developing the country’s industrial sector help create an attractive business environment for investors, strengthen the UAE’s position as a global industrial hub, and positively reflect the performance and growth of the industrial sector,” said Dr. Sultan Al Jaber , Minister of Industry and Advanced Technology.

“This law will advance industry through empowerment, integration and partnership.”

The new law supports the goals of international agreements in which the UAE is involved, such as those of the World Trade Organization.

It will replace Federal Law No. 1 of 1979 on industry regulation. It will strengthen the integration between the Ministry of Industry, local economic departments and licensing agencies for free zones, economic zones and professional zones by regulating the process of issuing industrial licenses, the statement said.

The decree promotes the industrial business environment in the UAE. Legislation is one of the mechanisms that promotes the growth and competitiveness of the sector. Other tools include world-class logistics infrastructure and technology adoption.

“The law aims to give Industrial sector and increase its contribution to GDP [gross domestic product]in line with the objectives of the Ministry of Industry and Advanced Technology,” said Dr Al Jaber.

The ministry will work with partners at the Industrial Development Council to finalize the administrative regulations and organize information workshops for manufacturers on the law.

Through industrial registration, the law will support multiple sectors including pharmaceuticals, food, medical and agricultural technology. It will also strengthen some of the most competitive U.S. industrial sectors, such as petrochemicals, iron, aluminum and plastics, while stimulating future industries, especially hydrogen and aerospace, the statement said.

The decree also supports Success in the UAE Initiatives launched by the ministry are aimed at leveraging various incentives and competitive advantages, such as legislative and regulatory frameworks, logistics capabilities, financing solutions, export opportunities, Comprehensive Economic Partnership Agreement (Cepa), bilateral trade agreements and adoption of advanced technologies.

“The law will make it easier for entrepreneurs, SMEs, advanced technology companies to obtain industrial licenses by providing greater flexibility, especially in terms of number of employees and scale of investment,” said Dr. Al Jaber.

The decree is combined with a package of projects adopted by the ministry to support the growth and global competitiveness of priority industries and to strengthen the UAE’s position as a global hub for future industries.

The law creates a national industrial registry, which includes a database detailing how much each industrial project contributes to the national economy. The data also helps companies and investors evaluate potential investment opportunities.

The law outlines the obligations of industrial facilities when obtaining an industrial license. It also defines the mandatory controls, norms and standards issued by the Ministry in accordance with the procedures and controls stipulated by the Law Enforcement Regulations.

The Ministry is supporting the goals of the Make it in the Emirates campaign through a range of programmes such as domestic value plansuccessfully spent more than AED 42 billion ($11.4 billion) on the national economy, Industry 4.0 initiatives and the “Made in the UAE” forum, during which major national companies announced commitments of AED 110 billion in potential purchase agreements .

The forum also identified 11 priority industries that contribute AED6 billion to the country’s GDP annually. Last year, the UAE’s industrial exports reached AED116 billion. The country has also strengthened its quality infrastructure system, which includes standard specifications, metrology, certification and conformity assessment, to support the performance of the UAE industrial sector.

“The UAE’s focus is on combining industrial growth with the country’s industrial identity, under the theme of ‘Made in the UAE’. The strategy aims to unify industrial standards based on maximum efficiency and production standards, thereby enhancing access to global markets and improving competitiveness of products made in the UAE,” said Dr Al Jaber.

Updated: November 9, 2022 at 6:35 pm