Khaleej Times, Saturday, Nov 12, 2022 | Rabi Al Thani 17, 1444
UAE President issues new law on regulation, development of industry
Emirates:
President His Highness Sheikh Mohamed bin Zayed Al Nahyan, issued Federal
Decree-Law No. 25 of 2022 regarding the regulation and development of industry.
The new law was introduced to support the organisation and development of the
national industrial sector by increasing the flexibility to adopt more
supportive policies and provide incentives. The law 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 specialised
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 Programme.
The law also supports the goals of international agreements in which the UAE
participates, such as those of the World Trade Organisation.
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 specialised zones by standardising the
process for issuing industrial licenses
The decree-law promotes the UAE's industrial business environment, promoting
Legislations' role as a mechanism that enables the sector's growth and
competitiveness. Other tools include world-class logistics infrastructure and
technology adoption.
MoIAT will work with its partners from the Industrial Development Council to
complete the executive regulations and organise 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 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,
bilateral trade agreements, and advanced technology adoption.
The decree-law is integrated with a package of projects adopted by MoIAT to
support the growth and global competitiveness of priority industries and
consolidate the UAE's position as a global centre for future industries.
The decree created a national industrial registry that includes a database
detailing how much each industrial project contributes to the national economy.
The data also helps companies and investors to evaluate potential investment
opportunities. The registry's data is protected, and it is prohibited to
circulate the data, except in accordance with the conditions specified by the
relevant authorities. The registry also outlines a set of obligations that
support the performance of industrial facilities, and enhance industrial
licensing procedures, permits, and exemptions.
The registry will also promote the development of incentives to support the
adoption of advanced technology and 4IR solutions in the industrial sector in
line with the recently announced Technological Transformation Program. It also
emphasizes the ministry's role in monitoring all licensed industrial activities
in the country.
The decree outlines the obligations of industrial facilities when acquiring an
industrial licence. 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 Ministry of Industry
and Advanced Technology aims to promote a sustainable economy in the fields of
raw materials, circular economies, and recycling waste.
MoIAT is supporting the objectives of the "Make it in the Emirates" campaign
with a number of programs such as the In-Country Value Programme, which
succeeded in redirecting more than AED42 billion to the national economy, the
Industry 4.0 programme, and the "Make it in the Emirates" Forum, during which
major national companies announced their commitment to providing Dh110 billion
of potential purchase agreements.
The forum also identified 11 priority sectors that contribute Dh6 billion
annually to the country's GDP. In terms of quality infrastructure, the UAE
ranked first in the Middle East and North Africa, and 11th globally in the
Quality Infrastructure Index for Sustainable Development, issued by the United
Nations Industrial Development Organisation (UNIDO) and the International
Network for Quality Infrastructure.
The UAE's industrial exports amounted to Dh116 billion last year. The country
also enhanced its quality infrastructure system, which includes standard
specifications, metrology, accreditation, and conformity assessment, to support
the performance of the UAE industrial sector.