General UAE Legal Questions LawFederal Law No. (3) of 2020 Regulating the Strategic Stock of Food Commodities in the State

Article (1) Definitions In application of the provisions of this Law, the following words and expressions shall have the meanings ascribed thereto unless the context requires otherwise: State : United Arab Emirates. Ministry : Ministry of Economy. Minister : Minister of Economy. The Competent Entity : The Government Federal or local Entity that is duly authorized to organize, supervise or control the strategic stock of food commodities. The Authority : National Emergency, Crisis and Disasters Management Authority. Warehouse : The place dedicated by the registered vendor to store food commodities and save the same as a strategic stock. Food Commodities : All food commodities as determined by the Ministry. Strategic Stock of Food Commodities : All food commodities specified by its names and quantities required to be stored subject to provisions of this Law. Safe Stock : The specified percentage the strategic stock of food commodities must less than it subject to provisions of this Law. Commodities Stock Management : A group of activities the provider and registered vendor perform in connection with the provision and safety of stored commodities subject to the Resolution issued by the Minister. Provider : The producer or importer who provides food commodities for distributors and vendors, whether inside or outside the State. Registered Vendor : Any person who conducts a business in connection with food commodities and is licensed in the State for the purpose of the application of this Law. Register : The register where providers and vendors are recorded and categorized.

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Federal Law of 2020 Regulating the Strategic Stock of Food Commodities in the State 3

Article (3) Competencies of the Ministry For the purposes of application of provisions of this Law, the Ministry shall have the following competencies: 1. Proposing policies, plans and programs relevant to the strategic stock of food commodities in coordination with the competent entity and to present the same to the Cabinet for approval. 2. Coordination with the joint economic committees of States providing the commodities concerning the programs that relate to the strategic stock of food commodities. 3. Putting the plans and programs of the volume and quantity of the safe stock and increasing the capacity of the strategic stock of food commodities in case of the increase of demand for food commodities at the State level. 4. Preparation of reports, studies, statistics and economic assessment concerning food commodities and estimation of the volume of consumption and determining the surplus and shortage. 5. Preparation of databases about the production and provision of food commodities in the State and countries of origin and follow up the databases of the providers. 6. Coordination and execution of policies to ensure, maintain and keep the strategic stock of food commodities, in collaboration with the Authority and the competent entity, to achieve a safe strategic stock of food commodities. 7. Review periodically with the competent entity to check the current balance of food commodities at the registered vendor. 8. Supervision of databases and electronic connection preparation with respect to warehouses, the strategic stock of food commodities and requirements of food commodities storing. 9. Monitoring the compliance of providers and registered vendors to the laws and instructions relevant to the execution of provisions of this Law. 10. Determining and updating a list of food commodities. 11. Determining the volume of the strategic stock of food commodities and percentage of the safe

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Federal Law of 2020 Regulating the Strategic Stock of Food Commodities in the State 4 stock. 12. Reviewing the reports of the competent entity or any other relevant entities and taking what is required. 13. Reporting recommendations to the Minister concerning the grant of incentives and facilities for registered vendors. 14. Submitting reports periodically to the Cabinet concerning the strategic stock of food commodities in the State. The Minister may form a subcommittee or committees to execute the aforementioned competencies in this Article.

Article (5) Obligations of the Provider and Registered Vendor The provider and the registered vendor shall abide by the following: 1. Maintain the safe stock subject to the provisions of this Law. 2. Supply the strategic stock of food commodities upon request. 3. Electronic connection with the competent entity and the Authority to ensure the continuous follow up of quantities, kinds and condition of the strategic stock of food commodities. 4. Execution of resolutions issued by the competent entity. 5. Distribution of the strategic stock of commodities in case of emergencies, crises or disasters according to the distribution plans prepared by the Authority in coordination with the competent entity.

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Article (9) 1. Whoever violates the provision of Paragraphs (1, 2 and 4) of Article (5) of this Law shall be punished of a penalty of no less than (500.000) five hundred thousand dirhams and no more than (2.000.000) two million dirhams. 2. Whoever violates the provisions of Paragraphs (3) of Article (5) and Article (6) of this Law shall be punished of a penalty of no less than (100.000) five hundred thousand dirhams and no more than (1.000.000) one million dirhams. 3. Whoever violates the provisions of Clause (5) of Article (5) of this Law shall be punished of a penalty of no less than (1.000.000) one million dirhams and no more than (5.000.000) five million

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Federal Law of 2020 Regulating the Strategic Stock of Food Commodities in the State 6 dirhams. 4. The penalties established for the violations stipulated herein shall be doubled in cases of recidivism.