UAE Company Formation / Licensing LawCabinet Resolution No. (14) of 2019 Organizing the Issuance of Temporary Licenses for Innovative Future Projects

Article (1) Definitions In application of the provisions of this Resolution, the following words and phrases shall have the meanings assigned to each of them, unless the context indicates otherwise: The State : The United Arab Emirates. Secretariat General : General Secretariat of the Council of Ministries Government Entity : Any federal or local authority competent to regulate, supervise, or control the Innovative Project. Innovative Project : Any project that is applied with modern technologies of a future character or using artificial intelligence tools, and for which there is no organized legislation in the state. Person : Natural or legal person. Licensee : The person obtaining provisional license in accordance with the provisions of this Resolution. Provisional License : The license issued by the Legislation Lab upon the approval of the Council of Ministers on the innovative project. Decree-Law : Decree-Law No. (25) of 2018 regarding Future Projects. Legislation Lab : Laboratory established under this Resolution to exercise the functions specified therein.

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Cabinet Resolution of 2019 Organizing the Issuance of Temporary Licenses for Innovative Future Projects 2

Article (2) Terms of Provisional License A provisional license shall be granted to the innovative project if the person applying for the license meets the following conditions: 1. Provide proof of financial, technical and technical feasibility of the experience and achievement of the innovative project. 2. Provide a study of the innovative project that demonstrates the added value of the project and its innovative aspects, and all its effects, such as technical, social, environmental, economic, financial, legislative and other effects. 3. Identify the potential risks of the innovative project, and provide a plan that describes ways to manage them and prevent them or reduce their effects. 4. Provide a clear plan of action indicating the procedures for implementation of the project, its stages, elements of the experimental environment required for it, the persons involved in it, the controls and other details that explain all the elements and the conditions of implementation of the project. 5. A written declaration that includes the person's undertaking to comply with all the terms and conditions relating to the provisional license determined by the Legislation Lab. 6. Provide evidence that he or she has expertise in the field of the innovative project for the periods specified by the legislation. 7. Any other terms and obligations determined by the Legislation Lab.

Article (3) Procedures for Granting Provisional License Applications for the license are received and studied according to the following procedures: 1. Applications for provisional licensing of innovative projects shall be submitted to the Legislation Lab in accordance with the mechanisms it specifies. 2. The laboratory shall study these applications according to the following procedures: a. Ensure that the conditions and controls referred to in Article (2) of this Resolution are met. b. Study and evaluation of the project in terms of its implications and the desired results of its implementation, and its importance to the State. c. In case of approval of the request, a recommendation shall be submitted to the Council of Ministers, including the following: 1. A statement of the nature of the innovative project, the expected additional

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Cabinet Resolution of 2019 Organizing the Issuance of Temporary Licenses for Innovative Future Projects 3 value, and the justification for granting it the provisional license. 2. A summary of the project work program and the time required to implement it. 3. Potential risks of project implementation and management methods. 4. Identify the governmental bodies related to the project and the statement of their views. 5. Federal legislation that requires the implementation of the project excluded from them. 6. Determine the nature of the guarantees from the licensee, in the case of approval of the granting of provisional license in cases where this requires.

Article (4) General Provisions 1. The Licensee may not waive the provisional license, in whole or in part, and any action contrary to this provision shall be considered null and void and shall not have any effect on third parties. 2. In case of need, the Legislation Lab shall require the licensee to provide any guarantees it deems appropriate, in accordance with the conditions of the project and the level of risks that may arise from it. 3. The Licensee alone shall bear all legal effects and responsibilities arising from the execution of the project against third parties during the period of the provisional license or after the termination of the license or suspension thereof for any reason or expiration of its term. 4. The Licensee shall comply with all legislation in force in the State during the period of the provisional license, except for those expressly provided for in the license.

Article (5) Legislation Lab 1. The Legislation Lab of the Secretariat shall be established and shall undertake the following tasks: a. Enhancing the role of the leading state in the field of future legislation. b. Proposing legislations that codify the application of innovative projects of a future nature in cooperation with government, private and specialized entities. c. Receiving applications for provisional licenses for innovative projects submitted to it, and developing mechanisms for receiving them, studying them and implementing

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Cabinet Resolution of 2019 Organizing the Issuance of Temporary Licenses for Innovative Future Projects 4 them in order to prepare the legislation regulating them. d. Determining the duration of the implementation of the innovative project, the obligations of the licensee, the cases of termination, termination or expiration of the license and other conditions and controls required by the nature of the innovative project. e. Maintaining documents and records of applications for provisional licensing of innovative projects. f. Taking the necessary measures to ensure that the Licensee will continue to meet the conditions referred to in Article (2) of this Resolution during the period of the provisional license g. Form any committees to study and evaluate applications. 2. The General Secretariat shall administer this laboratory and supervise its work.