General Q&A Industrial Law
it was launched under the directives of the UAE’s leadership to support the industrial sector, increase its contribution to the country’s GDP, and enhance its growth and competitiveness.
• is an essential pillar for industrial development through empowerment, integration and partnerships in industrial projects
• will contribute to creating an attractive business environment for investors in the industrial sector
• will enhance the country's position as an industrial hub for investors
• will support the performance and growth of the industrial sector, and will raise its contribution to GDP
Q2) When will the law start being applied and to which parties will it be applied?
The decree-law will come into force in January 2023 and it will apply to all industrial activities in the country including free, economic and specialized zones.
It will replace Federal Law No. 1 of 1979 regarding the regulation of industry affairs, and it will enhance integration between the ministry, national and local entities, local departments of economic development, and licensing authorities in free, economic and specialized zones.
It will standardize the procedures and requirements for issuing industrial licenses, making them simpler to obtain.
Q3) When will the executive regulations of this law be issued?
The Ministry of Industry and Advanced Technology will work with its partners and members of the Industry Development Council to complete the necessary regulation procedures and organize specialized technical awareness workshops for manufacturers and those impacted by the new law. The sessions will provide information and answers to stakeholders.
Q4) Will the law constitute a supportive system to empower the industrial sector in the country and raise its contribution to the GDP, how will this be achieved and what are its most important advantages?
The law, issued by His Highness the President of the UAE, will support the growth and empowerment of the industrial sector through:
• Strengthening the role of MoIAT, which includes promoting investments and representing the country on the global industrial stage
• Facilitating industrial licensing procedures and requirements, which have become more flexible, especially in terms of the number of employees and the volume of investment.
• Allowing entrepreneurs, SMEs, advanced tech companies, and research and development companies to obtain industrial licenses easily and conveniently
• Improving quality, health, safety, and sustainability among UAE manufacturers.
• Providing flexibility for new policies to be issued by the UAE Cabinet, in case of any new requirements, procedures or strategic directions
• Achieving self-sufficiency in a number of priority industries, in turn enhancing the ability of the UAE’s industry and national supply chains to weather global crises.
• Providing conditions that support the growth of the national industrial sector by standardizing procedures and reducing fees
• Supporting the development of a central industrial registry that contributes to achieving industrial integration. It will include an integrated database of industrial projects in the country which will help determine their contributions to the national economy
• Providing the industrial sector with instant data to achieve the highest levels of readiness,. in addition to providing technical support to manufacturers through feasibility studies and evaluating potential investment opportunities
• Stimulating innovation, research and development by increasing the use of advanced technology solutions and applications, as well as 4IR solutions and industries of the future to improve productivity and quality.
• Strengthening the legislative structure that supports the industrial business environment. This is to achieve growth, expansion and prosperity in the sector. It is also to enhance the mechanisms and tools that enable the sector’s growth and competitiveness.
• Providing a stimulating environment for entrepreneurs and SMEs
• Opening new export markets for UAE products
Q5) Is the issuance of this law related to the rest of the initiatives, programs and strategies adopted by the United Arab Emirates?
Yes. The UAE, through MoIAT, continues to develop the industrial sector by launching initiatives, programs, strategies, and laws. This law is aligned with:
• The national industrial strategy, Operation 300 Billion
• The Make it in the Emirates initiative and its important role in supporting the private sector and attracting industrial investments
• The In-Country Value program
• Industry 4.0 program
• The Technology Transformation Program
In addition to other initiatives, programs and strategies launched by the UAE with the aim of empowering and strengthening the industrial sector and its partners.
Q6) The United Arab Emirates has signed various international agreements and strategic partnerships. Will this law contribute to strengthening these partnerships?
Yes, this law will contribute to strengthening the UAE’s partnership with international institutions, for instance, its agreements with the World Trade Organization and other international and regional institutions.
Q7) Does this law have a positive impact on the private sector? In what way?
Ans: Yes, this law supports the private sector through:
• Strengthening the role of establishments that contribute to achieving integration of priority industrial sectors with national strategies
• Creating economically feasible opportunities to support national products
• Feasibility studies and evaluations of investment opportunities as provided by the law will support a number of sectors such as pharmaceuticals, food, medical and agricultural technology
• Enhancing the existing competitive industrial sectors, such as petrochemicals, minerals such as iron and aluminum, as well as plastics
• Stimulating future industries, most notably hydrogen and aerospace
Q8) Will this law impose obligations on establishments?
Yes, there are obligations that all institutions and companies must fulfill, including:
• Fulfilling the requirements of the industrial license
• Obtaining an industrial production permit
• Determining the advantages and exemptions granted to the industrial establishment
• Committing to the mandatory standards and measures issued by MoIAT
• Not doing any business that would change, expand or develop production, or merge the industrial facility with another industrial facility
• Not dividing the industrial facility into more than one project
• Not changing the location of the facility except in accordance with the conditions and procedures specified by the law, which will be issued at a later stage
November 11, 2022