Legislation Details
- Full Title: Federal Decree Law Regarding the Regulation and Development of the Industry
- Law Type: Federal Decree Law
- Law Number: 25 of 2022
- Issued Date: 26 Sep 2022
- Effective Date: 02 Jan 2023
- Official Gazette: No. 736
- Sector: Industry and Technical Standardisation
- Status: Active
- Number of Articles: 45
- Chapters/Parts: 0
- Amendments: 0
Summary
This Federal Decree Law regulates and develops the industrial sector in the United Arab Emirates. Its purpose is to unify policies and legislation related to industrial sectors, enable the industrial sector, and enhance its contribution to the UAE's gross domestic product. The law applies to all industrial establishments, including those in free zones, and establishes the Ministry of Industry and Advanced Technology as the competent authority to develop national guidelines, policies, and strategies for the industrial sector. (Federal Decree Law Regarding the Regulation and Development of the Industry, 2022, Art. 2-3) The law is significant for businesses and individuals in the UAE as it sets out the licensing, registration, and operational requirements for industrial establishments. It also provides for privileges and exemptions to incentivize the development of priority industries that contribute to the UAE's global competitiveness and industrial integration. Failure to comply with the law can result in criminal and administrative penalties. (Federal Decree Law Regarding the Regulation and Development of the Industry, 2022, Art. 5-13)
What is the scope and purpose of this law?
The Federal Decree Law aims to achieve three main objectives: (1) unifying policies and legislation related to industrial sectors to align with the UAE's economic development and diversification programmes; (2) enabling the industrial sector and increasing its contribution to the gross domestic product; and (3) achieving cooperation, integration, and coordination between federal and local government agencies responsible for industrial sector development. (Federal Decree Law Regarding the Regulation and Development of the Industry, 2022, Art. 2) The law applies to all industrial establishments in the UAE, including those located in free zones. It considers any establishment licensed to practice an industrial activity, whether the license is industrial or non-industrial, to be an "industrial establishment" under the law. (Federal Decree Law Regarding the Regulation and Development of the Industry, 2022, Art. 3)
What are the key definitions under this law?
The law provides the following key definitions:
- State: The United Arab Emirates (UAE)
- Ministry: Ministry of Industry and Advanced Technology
- Minister: Minister of Industry and Advanced Technology
- Concerned Authority: The federal or local authority competent to implement the law's provisions
- Licensing Authority: The local authority or free zone authority competent to issue an industrial license
- Industrial Licence: The document issued by the Licensing Authority for an industrial establishment to practice its activity
- Industrial Establishment: An establishment whose primary purpose is to transform raw materials into fully or semi-manufactured products, including mixing, separating, forming, assembling, and packaging operations
- Industrial Product: The fully or semi-manufactured material(s) produced by the industrial establishment
- Owner of the Industrial Establishment: A natural or legal person who owns the industrial establishment in whole or in part
- Industrial Registry: An electronic database recording data of all licensed industrial establishments
- Executive Regulations: The regulations issued to implement the law's provisions
(Federal Decree Law Regarding the Regulation and Development of the Industry, 2022, Art. 1)
What are the main obligations and requirements?
The law imposes several key obligations on industrial establishments: 1. Complying with the conditions of the industrial license. (Federal Decree Law Regarding the Regulation and Development of the Industry, 2022, Art. 8(1)) 2. Complying with the conditions for permitting industrial production and the controls for benefits and exemptions granted. (Federal Decree Law Regarding the Regulation and Development of the Industry, 2022, Art. 8(2)) 3. Complying with mandatory specifications and standards issued by the Ministry. (Federal Decree Law Regarding the Regulation and Development of the Industry, 2022, Art. 8(3)) 4. Obtaining permission before leasing, disposing, or changing the location of the industrial establishment. (Federal Decree Law Regarding the Regulation and Development of the Industry, 2022, Art. 8(4-5)) 5. Notifying the Ministry and Licensing Authority of any sale, mortgage, lease, or assignment of the industrial establishment. (Federal Decree Law Regarding the Regulation and Development of the Industry, 2022, Art. 8(6)) 6. Notifying the Ministry and Licensing Authority within 30 days if the industrial establishment stops operating. (Federal Decree Law Regarding the Regulation and Development of the Industry, 2022, Art. 8(7)) 7. Allowing authorized representatives to enter the industrial establishment, view records, and monitor production. (Federal Decree Law Regarding the Regulation and Development of the Industry, 2022, Art. 8(10))
What licensing, registration, or approval requirements exist?
The law establishes the following licensing and registration requirements: 1. The Licensing Authority is responsible for issuing, renewing, amending, suspending, and cancelling industrial licenses for industrial establishments within its jurisdiction. (Federal Decree Law Regarding the Regulation and Development of the Industry, 2022, Art. 5(1)) 2. The Licensing Authority must take into account the technical standards and requirements required by the Ministry when issuing industrial licenses. (Federal Decree Law Regarding the Regulation and Development of the Industry, 2022, Art. 5(2)) 3. The Ministry shall establish an "Industrial Registry" to record data and information related to licensed industrial establishments. (Federal Decree Law Regarding the Regulation and Development of the Industry, 2022, Art. 6(1)) 4. The Ministry is responsible for issuing the "industrial production permit", which grants privileges and exemptions to eligible industrial establishments. (Federal Decree Law Regarding the Regulation and Development of the Industry, 2022, Art. 7(1-3))
What are the penalties for non-compliance?
The law prescribes the following penalties for non-compliance: 1. Every owner of an industrial establishment that practices an industrial activity without obtaining an industrial license shall be punished with imprisonment and a fine not exceeding AED 1,000,000 or one of these two penalties. (Federal Decree Law Regarding the Regulation and Development of the Industry, 2022, Art. 10) 2. The law allows for reconciliation of the criminal case stipulated in Article 10 before referral to the court, in exchange for payment of an amount not exceeding the maximum fine prescribed for the crime. (Federal Decree Law Regarding the Regulation and Development of the Industry, 2022, Art. 11) 3. Violations and administrative penalties for acts that occur in violation of the law and its implementing resolutions shall be determined by a Council of Ministers resolution based on a proposal by the Ministry. (Federal Decree Law Regarding the Regulation and Development of the Industry, 2022, Art. 12) 4. Whoever commits any of the violations specified in the Council of Ministers resolution shall immediately remove the causes of the violation and the resulting damages. If they fail to do so, the Concerned Authority shall remove it and charge the violator the costs plus an additional 20% as administrative and supervisory expenses. (Federal Decree Law Regarding the Regulation and Development of the Industry, 2022, Art. 13)
What rights and protections does this law provide?
The law does not explicitly specify any rights or protections granted to individuals, workers, or businesses. The focus of the law is on regulating and developing the industrial sector through licensing, registration, and compliance requirements.
Which authorities or bodies are responsible for enforcement?
The key authorities and bodies responsible for enforcement under this law are: 1. The Ministry of Industry and Advanced Technology, which is tasked with developing national guidelines, policies, and strategies for the industrial sector, setting standards, and representing the UAE abroad on industry-related matters. (Federal Decree Law Regarding the Regulation and Development of the Industry, 2022, Art. 4) 2. The Licensing Authority, which is responsible for issuing, renewing, amending, suspending, and cancelling industrial licenses for establishments within its jurisdiction. (Federal Decree Law Regarding the Regulation and Development of the Industry, 2022, Art. 5) 3. The Concerned Authorities, which are the federal or local authorities competent to implement the law's provisions. (Federal Decree Law Regarding the Regulation and Development of the Industry, 2022, Art. 1)
What fees, charges, or financial provisions are specified?
The law does not specify any fees, charges, or financial provisions. It only states that the Executive Regulations shall determine the controls and procedures for issuing, renewing, suspending, and cancelling the "industrial production permit" granted by the Ministry. (Federal Decree Law Regarding the Regulation and Development of the Industry, 2022, Art. 7(3))
What exemptions or exceptions apply?
The law states that the Council of Ministers may exempt any industrial sector from the provisions of this law based on a proposal by the Minister and in coordination with the Concerned Authorities. (Federal Decree Law Regarding the Regulation and Development of the Industry, 2022, Art. 3(4)) Additionally, the law provides for privileges and exemptions to be granted to industrial establishments that achieve the priorities of the UAE's industry strategies, such as those that provide a competitive advantage, are based on advanced technology, apply sustainable manufacturing policies, or contribute to industrial integration. (Federal Decree Law Regarding the Regulation and Development of the Industry, 2022, Art. 7(2))
How are disputes resolved under this law?
The law does not specify any dispute resolution mechanisms or procedures. It is silent on how disputes arising from the application of this law would be resolved.
What are the key deadlines and time limits?
The law imposes the following key deadlines and time limits: 1. Industrial establishments must notify the Ministry and Licensing Authority within 30 days if they stop operating in whole or in part. (Federal Decree Law Regarding the Regulation and Development of the Industry, 2022, Art. 8(7)) The law does not specify any other explicit deadlines or time limits.
How does this law interact with other UAE legislation?
The law references the following related UAE federal legislation: - Federal Law No. (1) of 1972 Regarding the Competences of Ministries and the Powers Of Ministers - Federal Law No. (1) of 1979 on the Regulation of Industry Affairs - Federal Law No. (18) of 1993 promulgating the Commercial Transactions Law - Federal Law No. (24) of 1999 Regarding the Protection and Development of the Environment - Federal Law No. (14) of 2016 Regarding Administrative Violations and Sanctions in the Federal Government - Federal Law by Decree No. (26) of 2019 on Public Finance - Federal Decree by Law No. (20) of 2020 Regarding Specifications and Standards - Federal Law by Decree No. (31) of 2021 Promulgating the Crimes and Punishments Law - Federal Decree by Law No. (32) of 2021 Regarding Commercial Companies - Federal Decree by Law No. (37) of 2021 Regarding Commercial Registry The law does not explicitly state whether it repeals or amends any of the referenced legislation. (Federal Decree Law Regarding the Regulation and Development of the Industry, 2022, Preamble)
When did this law come into effect?
This Federal Decree Law Regarding the Regulation and Development of the Industry was issued on 26 September 2022 and came into effect on 2 January 2023. (Federal Decree Law Regarding the Regulation and Development of the Industry, 2022, Issued Date and Effective Date)
Source Documents
This article analyses Federal Decree Law Regarding the Regulation and Development of the Industry for legal research and educational purposes. For the purpose of interpretation and application, reference must be made to the original Arabic text. In case of conflict, the Arabic text prevails. This does not constitute legal advice.