General UAE Legal Questions LawFederal Decree Law No. (25) of 2022 Regarding the Regulation and Development of the Industry

Article (1) Definitions In application of the provisions of this Law by Decree, the following words and phrases shall have the meanings assigned to each of them, unless the context otherwise requires: State : The United Arab Emirates (UAE). Ministry : Ministry of Industry and Advanced Technology. Minister : Minister of Industry and Advanced Technology.

-- 1 of 10 --

Federal Decree Law No. (25) of 2022 Regarding the Regulation and Development of the Industry 2 Concerned Authority : The federal or local authority competent to implement the provisions herein. Licensing Authority : The local authority or free zone authority competent to issue an industrial licence for an industrial establishment. Industrial License : The document issued by the Licensing Authority denoting the licensing of the industrial establishment to practice its activity. Industrial Establishment : Every establishment whose primary purpose is to transform raw materials into fully manufactured or semi-manufactured products or to convert semi-manufactured products into fully manufactured products, including mixing, separating, forming, assembling, and packaging works, provided that all or most of these operations shall be carried out by mechanical force. Industrial Product : The fully or semi-manufactured material or materials produced by the industrial establishment. Owner of the Industrial Establishment : A natural or legal person who owns the industrial establishment in the State in whole or in part. Industrial Registry : An electronic database in which data of all industrial establishments licensed by the Licensing Authority shall be recorded. Executive Regulations : The executive regulations issued in implementation of the provisions herein.

Article (3) Scope of Application of the Law by Decree 1. The provisions herein shall apply to all industrial establishments, including industrial establishments located in free zones in the State. 2. In the application of the provisions herein, establishments licensed as part of their activities to practice an industrial activity according to the approved classification of economic activities, whether the license issued to the establishment is industrial or non-industrial, are considered among the industrial establishments. 3. The Executive Regulations determine the controls that shall be observed in industrial establishments subject to the provisions herein. 4. The Council of Ministers may exempt any industrial sector from the provisions herein based on the proposal of the Minister in coordination with the Concerned Authorities.

Article (4) Competences of the Ministry To achieve the objectives herein, the Ministry shall undertake the following: 1. Developing national guidelines, policies, and strategies to empower the industrial sector in the State, raise its contribution to the gross domestic product and enhance its competitiveness, in coordination with the Concerned Authorities, and supervise their implementation after being approved by the Council of Ministers; 2. Proposing basic technical standards and requirements for the classification and licensing of industrial activities in coordination with the Licensing Authority and other concerned authorities;

-- 3 of 10 --

Federal Decree Law No. (25) of 2022 Regarding the Regulation and Development of the Industry 4 3. Determining the primary and secondary industries and targeted supply chains that add value to the national economy; 4. Setting national priorities and standards, preparing programmes and initiatives necessary to develop the fields of industry, working on industrial establishments in developing models, applied technology, and newly competitive industries, and supervising their implementation in coordination with the concerned authorities; and 5. Studying and analysing data and information related to the industry, conducting specialised studies, research, surveys, and building indicators to measure the efficiency and effectiveness of the industrial sector and its impact on the State economy. 6. . Establishing strategic partnerships with the government and private sectors in the field of developing the industrial sector and enhancing its competitiveness regionally and internationally; and 7. Representing the State abroad in fields related to the industry, in accordance with the regulations in force in the State.

Article (6) Industrial Registry 1. A registry called the "Industrial Registry" shall be established at the Ministry, including data and information related to licensed industrial establishments. The Executive Regulations shall determine the data and information of the industrial registry, the procedures for their registration and modification, and the mechanisms for linking the industrial registry with the records and databases of the concerned authorities.

-- 4 of 10 --

Federal Decree Law No. (25) of 2022 Regarding the Regulation and Development of the Industry 5 2. The Ministry may not make available data and information related to the establishments registered in the industrial registry and the modifications that occur to them through its website, except in accordance with the controls specified by the Executive Regulations. 3. The owner of the industrial establishment, the partner therein, or his heirs may obtain an extract of the data related to the industrial establishment from the industrial registry, in accordance with the conditions and procedures specified by the Executive Regulations. 4. Non-professional employees of the Ministry, licensing authorities or judicial authorities may view the contents of the industrial registry or circulate the data and information registered therein or use them except in accordance with the conditions specified by the Executive Regulations.

Article (7) Privileges and Exemptions for Industrial Establishment 1. The Ministry shall be responsible for issuing the industrial production permit, according to which the industrial establishment is granted the privileges and exemptions specified by a resolution of the Council of Ministers based on the Minister proposal in coordination with the concerned authorities. 2. Privileges and exemptions shall be granted to industrial establishments that achieve the priorities of industry strategies in the State, which include the following establishments: A. Establishments that provide a competitive advantage for the State and enhance its position within the global value chain of industry; B. Establishments based on advanced technology in industrial systems and solutions; C. Establishments that apply sustainable manufacturing policies; D. Establishments that shall be established in areas specified by the State for their advancement; E. Establishments that practice industries that shall be based on the exploitation and development of natural resources available in the State; and F. Establishments practising industries that contribute to achieving industrial integration in the State. 3. The Executive Regulations shall determine the controls and procedures for issuing, renewing, suspending and cancelling the industrial production permit.

-- 5 of 10 --

Federal Decree Law No. (25) of 2022 Regarding the Regulation and Development of the Industry 6

Article (8) Obligations of the Industrial Establishment The industrial establishment shall comply with the following: 1. Industrial license conditions; 2. Conditions for permitting industrial production and controls for benefits and exemptions granted to industrial establishments; 3. Mandatory specifications and standards issued by the Ministry; 4. Not to lease the land or building allocated for the industrial establishment from government agencies to others or dispose of it in any way without obtaining permission from the competent government agencies, provided that the Ministry shall be informed thereof; 5. Not to carry out any work that shall change production, expand or develop it, merge the industrial establishment with another industrial establishment, divide the industrial establishment into more than one project, or change the location of the establishment, except in accordance with the controls and procedures specified by the Executive Regulations; 6. Notifying the Ministry and the Licensing Authority of selling, mortgaging, leasing, or assigning the industrial establishment in whole or in part. The Executive Regulations shall specify the necessary procedures, therefore, including the procedures prior to any of these actions; 7. Notifying the Ministry and the Licensing Authority in the event that the industrial establishment stops working in whole or in part within (30) thirty days as of the date of stopping the activity, indicating the reasons for stopping; 8. Notifying the concerned authorities of any accident that poses a threat to life, property, public health, or the environment; 9. Providing the Ministry with the complete and correct data and information it requests about the industrial establishment; 10. Allowing authorised representatives of the Ministry and the concerned authorities to enter the industrial establishment, view records, documents, and accounts, and monitor production processes and other activities of the industrial establishment; and

-- 6 of 10 --

Federal Decree Law No. (25) of 2022 Regarding the Regulation and Development of the Industry 7 11. Undertakings and other obligations imposed by the legislation in force on the industrial establishment.

Article (15) Judicial Seizure The employees of the Ministry or the Licensing Authority who are specified by a resolution of the Minister of Justice in agreement with the Minister or who are specified by a resolution

-- 8 of 10 --

Federal Decree Law No. (25) of 2022 Regarding the Regulation and Development of the Industry 9 of the head of the local judicial authority in agreement with the head of the Licensing Authority, as the case may be, have the capacity of judicial seizure officers to prove what occurs in violation of the provisions herein, its Executive Regulations and Resolutions issued in implementation thereof, within the scope of their competence. They shall have access to industrial establishments, seize violations, and issue the necessary records in accordance with the provisions specified by the Executive Regulations.