The UAE's President His Highness Sheikh Mohamed bin Zayed Al Nahyan has issued Federal Decree-Law No. 25 of 2022 regarding the regulation and development of industry.
The new law was introduced to support the organization and development of the national industrial sector by increasing the flexibility to adopt more supportive policies and provide incentives.
It 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 become effective as of January 2023 and will be applied to all industrial activities in the country, including free, economic, and specialized zones.
The law allows the creation of a package of incentives and enablers for the industrial sector that support national strategic objectives to increase industrial competitiveness.
This includes the establishment of a national industrial registry that features 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 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, aluminum and plastics, while stimulating future industries, most notably the hydrogen and aerospace sectors.
The decree also 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-law is integrated with a package of projects adopted by the Ministry of Industry and Advanced Technology to support the growth and global competitiveness of priority industries and consolidate the UAE's position as a global center for future industries.