The UAE government has issued a new decree that takes effect in January to enhance the regulation and development of its local industrial sector.

The Federal Decree-Law No. 25 of 2022 is designed to improve the 'flexibility' of the UAE industrial sector in terms of adopting supportive policies and providing incentives. 

“The new law to regulate and develop the country’s industrial sector helps to create an attractive business environment for investors, strengthens the UAE’s position as a global industrial hub, and reflects positively on the performance and growth of the industrial sector,” said Sultan Ahmed al-Jaber, Minister of Industry and Advanced Technology.

 UAE industrial manufacturing balloons

The new law aims to:

• Create incentives and enablers by establishing a national industrial registry. The database will provide manufacturers and investors with feasibility studies and help identify investment opportunities
• Expand the role of the Ministry of Industry and Advanced Technology (MoIAT). The ministry will promote inward investments and the adoption of advanced and digital technologies. It will also stimulate innovation, research and development, in alignment with the national in-country value programme
• Enhance integration between MoIAT and other departments, such as licensing authorities, and standardise the process of issuing licenses
• Promote UAE's industrial business environment, highlighting its supportive legislation, logistics infrastructure and technology adoption
• Support the Make it in the Emirates initiative and improve the ease of obtaining licenses for entrepreneurs, SMEs and advanced tech companies

The decree-law replaces Federal Law No. 1 of 1979 on industry regulation, and will apply to all industrial activities in the UAE, including free, economic and specialised zones.

The law will cater to several 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.

As a next step, MoIAT and the Industrial Development Council are expected to complete the executive regulations and organise information workshops for manufacturers about the law.

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