The UAE has introduced a new law to develop the country’s industrial sector.
The new law will come into effect in January, and will be applied to all industrial activities in the country, including free, economic, and specialised zones.
Industrial exports from the UAE amounted to $32bn (AED116bn) last year and the law change will make it easier for entrepreneurs, SMEs, advanced technology companies to obtain industrial licences in the UAE.
UAE industry boost
President Sheikh Mohamed, issued the federal law on Wednesday, state news agency WAM reported.
The new law increases flexibility for the industrial sector and aims to increase the attractiveness to local and foreign investors in the country.
The law allows the creation of incentives within 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.
It is expected the new law will boost business in the fields of medicine, food, medical and agricultural technology. It will also strengthen some of the UAE’s already competitive industrial sectors, such as petrochemicals, iron, aluminium and plastics, while stimulating future industries, most notably the hydrogen and aerospace sectors.
Through the decree the Ministry of Industry and Advanced Technology (MoIAT) will take a more central role in promoting investment in the UAE.
The Ministry has identified 11 priority sectors that contribute $1.6bn (AED6b) annually to the country’s GDP.
Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology, said that the law will help 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.
Dr. Al Jaber said: “The law will make it easier for entrepreneurs, SMEs, advanced technology companies to obtain industrial licences by providing greater flexibility, especially in terms of employee numbers and size of investment. It will also support factories to increase quality, health and safety, and efforts to achieve sustainability and carbon neutrality in line with the UAE’s strategic vision,” he added.
He explained that the law provides the flexibility to issue more incentives in the form of policies and programmes, which are linked to national strategies, some of which have already been implemented, such as the National In-Country Value programme, Industry 4.0, and the Technology Transformation Programme. “It will encourage new programmes to be rolled out in the future to support the efforts of the industrial sector,” he commented.
“The law will enhance the UAE’s efforts to achieve self-sufficiency in a number of priority industries in a way that enhances the ability of supply chains to withstand global crises. It will also provide the necessary conditions to support industrial growth by standardizing procedures and reducing fees. The law will enhance the business environment for entrepreneurs and SMEs and open new export markets,” Dr. Al Jaber said.
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