General UAE Legal Questions LawFederal Decree by Law No. (24) of 2025 Regulating Industrial and Medical Uses of Industrial Hemp

Article (1) Definitions For the purposes of implementing the provisions of this Decree by Law, the following terms and expressions shall have the meanings assigned to each of them, unless the context requires otherwise: State : The United Arab Emirates. Ministry : The Ministry of Climate Change and Environment. Minister : The Minister of Climate Change and Environment. Authority : The National Anti-Narcotics Authority.

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Federal Decree by Law of 2025 Regulating Industrial and Medical Uses of Industrial Hemp 2 Federal Authorities : Federal ministries, institutions, and authorities concerned with public health, agriculture, industry, trade, customs, or security. Local Authority : The local authority competent in matters of public health, agriculture, environment, industry, customs, or security in each emirate, as the case may be, in accordance with what is decided by the local government in the emirate. Cannabis : The flowering or fruiting tops of the Cannabis plant. excluding e the seeds and leaves that are not accompanied by the tops, from which the resinous substance, known as Cannabis resin, has not been extracted, which is naturally secreted from the flowering or fruiting tops of the Cannabis plant, whether raw or purified, in its solid or semi-solid forms resulting from the collection or extraction of this secretion. Industrial Hemp : Any type of the Cannabis Sativa plant, and any part thereof, such as the plant, flowers, or seeds, or any of its derivatives or extracts, whether growing or not, in which the total concentration of tetrahydrocannabinol (Total THC) in the flowering heads and leaves does not exceed (0.3%) on a dry weight basis. When calculating this total percentage, the potential conversion of tetrahydrocannabinolic acid (THCa) into delta-9 tetrahydrocannabinol (Delta 9 THC) compound shall be taken into account, in accordance with the analysis and calculation mechanism specified in the Executive Regulations of this Decree by Law. Activity : One of the activities stipulated in Article (2) of this Decree by Law. Licensing Authority : The authority competent to license the Activity in accordance with the provisions of this Decree by Law.

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Federal Decree by Law of 2025 Regulating Industrial and Medical Uses of Industrial Hemp 3 License : A document issued by the Licensing Authority in accordance with the provisions of this Decree by Law, its Executive Regulation, and the resolutions issued in implementation thereof, permitting the Licensee to practice the Activity stipulated in Article (2) of this Decree by Law. Licensee : The legal person who has obtained the License. Import or Export Permit : The permit issued by the Ministry or the Ministry of Foreign Trade to the Licensee for the import or export of seeds or products of Industrial Hemp in accordance with the provisions of this Decree by Law, its Executive Regulation, and the resolutions issued in implementation thereof. Industrial Hemp Symbol : A mark placed on Industrial Hemp products for the purpose of identifying the content of any product obtained in accordance with the provisions of this Decree by Law, the determination of which shall be issued by a resolution of the Minister of Industry and Advanced Technology. Disposition : Sale, purchase, distribution, marketing, offering for sale, or any other forms as specified by the Executive Regulations of this Decree by Law.

Article (2) Scope of Application of the Decree by Law 1. By way of exception to the provisions of Federal Decree by Law No. (30) of 2021 Regarding Combating Narcotics and Psychotropic Substances, as amended, or any other law that supersedes it, the provisions of this Decree by Law shall apply to the regulation of the uses of Industrial Hemp, and its provisions shall apply to activities related to Industrial Hemp practiced in the State, including free zones, which consist of the following: a. Import and export of Industrial Hemp seeds. b. Cultivation of Industrial Hemp.

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Federal Decree by Law of 2025 Regulating Industrial and Medical Uses of Industrial Hemp 4 c. Transportation of Industrial Hemp seeds and seedlings. d. d. Disposition of Industrial Hemp seeds and seedlings. e. Manufacturing of Industrial Hemp products. f. Import and export of Industrial Hemp products. g. Circulation of Industrial Hemp products. 2. It is prohibited to import or manufacture the following Industrial Hemp products: a. Food products, with the exception of roasted or processed hemp plant seeds rendered non-viable, in accordance with the exception stipulated in Schedule No. (4) of the aforementioned Federal Decree by Law No. (30) of 2021. b. Food supplements. c. Cosmetic products, except for those containing oils extracted from the seeds or stems of Industrial Hemp, or those containing Cannabis resin and the flowering or fruiting tops of Cannabis, tinctures or extracts of Cannabis, and are completely free of tetrahydrocannabinol (THC) in all its forms and its precursor acids, and are completely free of any other compounds derived from Cannabis that may produce a narcotic effect, directly or indirectly, after chemical processing, in accordance with what is determined by a resolution issued by the Cabinet. d. Veterinary products. e. Smoking products. f. Any other products determined by a resolution of the Cabinet. 3. The Cabinet may, upon the proposal of the Chairman of the Board of Directors of the Emirates Drug Establishment, amend the percentage of tetrahydrocannabinol (THC) concentration permitted in the cosmetic products referred to in Paragraph (c) of Clause (2) of this Article, provided that there is no narcotic effect, and in accordance with the limits, percentages, and conditions determined by a resolution of the Cabinet. 4. It is prohibited to import and export Industrial Hemp seedlings to and from the State. 5. The regulation of Cannabis in which the concentration of tetrahydrocannabinol (THC) exceeds (0.3%) shall be subject to the provisions of the aforementioned Federal Decree by Law No. (30) of 2021 Regarding Combating Narcotics and Psychotropic Substances, as amended, or any other law that supersedes it.

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Federal Decree by Law of 2025 Regulating Industrial and Medical Uses of Industrial Hemp 5 6. Without prejudice to Clause (2) of this Article, the regulation of activities related to medical products containing Industrial Hemp compounds or raw materials extracted from Industrial Hemp that are used in the manufacturing of medical products shall be subject to the provisions of Federal Decree by Law No. (38) of 2024 Regarding Medical Products, the Pharmacy Profession, and Pharmaceutical Establishments, or any other law that supersedes it. 7. The Executive Regulations of this Decree by Law shall specify the sectors, industries, and fields in which the use of Industrial Hemp is permitted. 8. Each emirate shall, within its territorial limits and in accordance with its applicable legislation and regulations, have the authority to prohibit or restrict all or some of the activities stipulated in Clause (1) of this Article. In such a case, the provisions stipulated in the laws on crimes and penalties, narcotic drug control, and any other related laws shall apply to those activities.

Article (2) of this Decree by Law. c. The seeds or seedlings shall be from a licensed source and listed in the list of varieties specified by the Executive Regulations of this Decree by Law. d. The presence of a certificate proving that the concentration of tetrahydrocannabinol (THC) does not exceed (0.3%) issued by laboratories established and accredited within the State by the concerned federal or local authorities. e. Any other conditions and controls specified by the Executive Regulations of this Decree by Law. 4. The Executive Regulations of this Decree by Law shall specify the time frames for reviewing the application, the validity period of the approval, and the cases for its revocation. 5. The holder of an approval to transport Industrial Hemp seeds and seedlings shall comply with the following: a. Retaining a copy of the seed or seedling License from the agricultural company during the transportation process, in addition to any other documents or data specified or approved by the concerned Local Authority, in a manner that proves that the

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Federal Decree by Law of 2025 Regulating Industrial and Medical Uses of Industrial Hemp 11 transported Industrial Hemp seeds or seedlings were produced and cultivated legally in accordance with the provisions of this Decree by Law, its Executive Regulation, and the resolutions issued in implementation thereof. b. Not opening the containers in places other than those intended and ensuring they are opened under the supervision of the concerned Local Authority. c. A clear and legible label shall be affixed to the packages or containers, containing the following information: 1. A precise description of the contents of the package or container and related data. 2. The concentration percentage of tetrahydrocannabinol (THC) of the contents of the package or container. 3. Producer data. 4. Date of packaging. 5. Information on the final destination and recipient. d. Any other obligations specified by the Executive Regulations of this Decree by Law.

Article (4) Controls for Practicing the Activity 1. It is prohibited to practice any of the activities stipulated in Clause (1) of Article (2) of this Decree by Law that require a License for their practice, except after obtaining a License from the Licensing Authority according to the type of Activity. The License shall be issued

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Federal Decree by Law of 2025 Regulating Industrial and Medical Uses of Industrial Hemp 6 after fulfilling the controls, conditions, and procedures stipulated in this Decree by Law, its Executive Regulation, and the resolutions issued in implementation thereof. 2. Issuing a License in accordance with the provisions of this Decree by Law shall not prejudice the fulfillment of any permits, licenses, or approvals required by the Federal or Local Authorities for practicing the Activity in accordance with the legislation in force in the State.

Article (5) Import and Export of Industrial Hemp Seeds 1. It is prohibited to practice the Activity of importing and exporting Industrial Hemp seeds unless one has obtained a License from the Ministry and has fulfilled the necessary licenses from the concerned Local Authority for practicing the Activity in the emirate. 2. A License to practice the Activity of importing and exporting Industrial Hemp seeds shall be issued in accordance with the following conditions and controls: a. The License applicant shall be an agricultural company established in accordance with the legislation in force in the State. b. The seeds shall be of the Industrial Hemp varieties intended for the Activity of import or export, and shall be on the list of approved varieties specified by the Executive Regulations of this Decree by Law. c. Compliance with using the imported seeds for cultivation in the areas designated by the concerned Local Authority and within the licensed areas in accordance with the provision of Clause (3) of Article (7) of this Decree by Law. d. The License applicant shall submit a declaration of non-Disposition of the Industrial Hemp seeds to anyone not licensed in accordance with the provisions of this Decree by Law, and Disposition contracts for Industrial Hemp seeds shall be concluded in accordance with the provisions of Article (15) of this Decree by Law. e. The License applicant shall submit an operational plan that clarifies the mechanism of cultivation, storage, distribution, sampling, and disposition, with a statement of all partners.

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Federal Decree by Law of 2025 Regulating Industrial and Medical Uses of Industrial Hemp 7 f. Any other conditions and controls specified by the Executive Regulations of this Decree by Law.

Article (6) Import and Export Permit for Industrial Hemp Seeds 1. It is prohibited to import or export Industrial Hemp seeds except after the issuance of a permit from the Ministry to that effect and the fulfillment of the necessary approvals from the concerned Local Authority for practicing the Activity in the emirate, including security clearances. 2. A permit to import or export consignments of Industrial Hemp seeds shall be issued in accordance with the following conditions and controls: a. The applicant shall be licensed to practice the Activity of import and export in accordance with the provisions of Article (5) of this Decree by Law. b. Compliance with the requirements of the agricultural consignment import and export service and agricultural quarantine procedures. c. The seeds shall be of the Industrial Hemp varieties intended for import or export and on the list of varieties specified by the Executive Regulations of this Decree by Law. d. The quantities of seeds to be imported or exported shall be in accordance with the standards, controls, and conditions specified by the Executive Regulations of this Decree by Law. e. A certificate from the country of origin shall accompany each consignment, confirming that the concentration of tetrahydrocannabinol (THC) does not exceed (0.3%) for the seeds intended for import, or a certificate from laboratories accredited by the Ministry shall accompany each consignment, confirming that the concentration of tetrahydrocannabinol (THC) does not exceed (0.3%) for the seeds intended for export. f. Any other conditions and controls specified by the Executive Regulations of this Decree by Law. 3. The Executive Regulations of this Decree by Law shall specify the time frames for reviewing the application, the validity period of the Import and Export Permit, and the cases for its revocation.

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Federal Decree by Law of 2025 Regulating Industrial and Medical Uses of Industrial Hemp 8 4. The legislation related to agricultural quarantine in the State shall apply to Industrial Hemp consignments. The Ministry also has the right to verify the fulfillment of the conditions and requirements referred to in Clause (2) of this Article, including shipping conditions, through inspection of the consignments, in coordination with the concerned Local Authority, and it may request any additional data or documents, as well as any additional approvals from the competent authorities in the State, as the case may be.

Article (7) Cultivation of Industrial Hemp 1. It is prohibited to practice the Activity of cultivating Industrial Hemp unless a License has been obtained from the Ministry and the necessary licenses have been obtained from the concerned Local Authority responsible for practicing the Activity in the emirate. 2. A License to cultivate Industrial Hemp shall be issued in accordance with the following conditions and controls: a. Obtaining the security clearance from a committee to be established under this Decree by Law, which shall be affiliated with the Authority. A resolution shall be issued by the Cabinet for its formation, competences, and the determination of its working system, upon the proposal of the Chairman of the Authority. The security clearance shall include the owner of the agricultural company, all partners, and the workers therein. b. The License applicant shall be an agricultural company established in accordance with the legislation in force in the State. c. The Industrial Hemp varieties intended for cultivation shall be among the list of varieties specified by the Executive Regulations of this Decree by Law. d. Any other conditions and controls specified by the Executive Regulations of this Decree by Law. 3. The concerned Local Authority shall determine the areas designated for the cultivation of Industrial Hemp in the emirate, provided that these areas are far from other agricultural areas and residential areas, and that they are fenced, monitored, and protected against unauthorized access, and marked with identification signs clarifying that it is a restricted agricultural area. These areas shall also comply with the security conditions and controls

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Federal Decree by Law of 2025 Regulating Industrial and Medical Uses of Industrial Hemp 9 specified by the committee referred to in Paragraph (a) of Clause (2) of this Article, in addition to any other conditions specified by the concerned Local Authority. 4. The Licensee engaged in the Activity of Industrial Hemp cultivation shall comply with the following: a. Adhere to cultivating Industrial Hemp in the areas designated by the concerned Local Authority and within the licensed areas. b. The cultivation shall be within the licensed quantities and in accordance with the standards, controls, and conditions specified by the Executive Regulations of this Decree by Law. c. Use of licensed seeds for cultivating Industrial Hemp in accordance with the standards and conditions specified by the Executive Regulations of this Decree by Law. d. Comply with the periodic tests and number of samples specified by the Executive Regulation of this Decree by Law during the production chain from cultivation to post- harvest, to ensure that the concentration of tetrahydrocannabinol (THC) does not exceed (0.3%). e. Notify the Ministry, the concerned Local Authority, and the Authority if the concentration of tetrahydrocannabinol (THC) exceeds (0.3%) at any stage of the production chain, in order to initiate seizure procedures in accordance with the provisions of Article (17) of this Decree by Law. f. Comply with the technical standards and regulatory procedures related to the use of fertilizers and pesticides in accordance with the legislation in force in the State. g. Concluding disposition contracts with licensees for the Industrial Hemp seedlings produced in accordance with the provisions of this Decree by Law. 5. It is prohibited to scatter seeds or cultivate seedlings of Industrial Hemp in natural habitats and protected areas to avoid uncontrolled growth within natural environments.

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Federal Decree by Law of 2025 Regulating Industrial and Medical Uses of Industrial Hemp 10

Article (8) Transportation of Industrial Hemp Seeds and Seedlings 1. It is prohibited to transport Industrial Hemp seeds and seedlings without obtaining approval from the concerned Local Authority. 2. In cases where transportation occurs across more than one emirate of the State, an approval shall be obtained from each of the concerned Local Authorities in each emirate. 3. An approval for the transportation application Industrial Hemp seeds and seedlings shall be issued in accordance with the following conditions and controls: a. Verifying the existence of systems approved by the concerned Local Authority to track consignments and monitor means of transport, including containers secured with metal seals, and preventing the replacement of their contents or their mixing with other products or materials, or their opening or dispersal in places other than those intended. b. The transportation shall be to entities licensed to practice the activities mentioned in

Article (9) Manufacturing of Industrial Hemp Products 1. It is prohibited to practice the Activity of manufacturing Industrial Hemp products without obtaining a License from the concerned Local Authority after the approval of the Ministry of Industry and Advanced Technology. 2. A License to practice the Activity of manufacturing Industrial Hemp products shall be issued in accordance with the following conditions and controls: a. The License applicant shall be a company established in accordance with the legislation in force in the State. b. The Industrial Hemp Products intended for manufacturing shall be among the list of products and uses specified by the Executive Regulations of this Decree by Law. c. The existence of an approved quality management system or a Good Manufacturing Practice (GMP) certificate. d. The existence of an internal laboratory or proof of a contract with an external laboratory accredited in the State.

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Federal Decree by Law of 2025 Regulating Industrial and Medical Uses of Industrial Hemp 12 e. The existence of an electronic documentation system for each production batch and its linkage to the national system for tracking Industrial Hemp seeds, seedlings, and products referred to in Article (23) of this Decree by Law. f. The existence of separate areas in the factory designated for receiving raw materials, manufacturing, packaging, storage, waste, and shipping, in compliance with the technical conditions and standards as specified by the Executive Regulations of this Decree by Law. g. Complying with obtaining all necessary permits or licenses from the concerned authorities in accordance with the applicable legislation before commencing any manufacturing or operating processes. h. Any other conditions and controls specified by the Executive Regulations of this Decree by Law. 3. During the process of converting and manufacturing the Industrial Hemp, it is prohibited to increase the concentration of tetrahydrocannabinol (THC) above (0.3%), and it is also prohibited to manufacture materials or products in which the concentration of tetrahydrocannabinol (THC) exceeds the permitted percentage or to use compounds extracted from Industrial Hemp to manufacture any narcotic substance. 4. Establishments licensed to practice the Activity of manufacturing Industrial Hemp products shall be subject to periodic inspection by the Licensing Authority throughout the stages of manufacturing and production. The Executive Regulations of this Decree by Law shall specify the procedures and rules for periodic inspection of these establishments. 5. The Licensee for manufacturing Industrial Hemp products shall comply with the following: a. Refraining from using any materials that may lead to an increase in the concentration of tetrahydrocannabinol (THC) above (0.3%), and complying with the controls and conditions for converting and manufacturing Industrial Hemp, the list of inputs that may be used in the conversion and manufacturing processes, and the technical standards and standard specifications related to quality and safety control, which are specified by the Executive Regulations of this Decree by Law.

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Federal Decree by Law of 2025 Regulating Industrial and Medical Uses of Industrial Hemp 13 b. Refraining from circulating compounds extracted from Industrial Hemp within the State with those not licensed in accordance with the provisions of this Decree by Law. c. Submitting regular periodic reports on manufacturing operations and production quantities to the concerned Local Authority, in accordance with what is specified by the Executive Regulations of this Decree by Law. d. Conducting periodic tests on raw materials and final products to ensure that the concentration of tetrahydrocannabinol (THC) does not exceed (0.3%), and submitting periodic reports thereon to the Licensing Authority and the Ministry of Industry and Advanced Technology. e. Notifying the Licensing Authority and the Authority of any cases where products exceed the concentration percentage of tetrahydrocannabinol (THC) of (0.3%), in order to initiate seizure procedures on the concerned products in accordance with the provisions of Article (17) of this Decree by Law. f. Any other obligations specified by the Executive Regulations of this Decree by Law.

Article (10) Import and Export of Industrial Hemp Products 1. It is prohibited to practice the Activity of importing and exporting Industrial Hemp products without obtaining a License from the Local Authority concerned with the issuance of business licenses. 2. A License to practice the Activity of importing and exporting Industrial Hemp products shall be issued in accordance with the conditions and controls stipulated in the local legislation related to the regulation of practicing economic activities in the State, and in particular, the determination of the amount or quantity of Industrial Hemp products licensed for import or export.

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Federal Decree by Law of 2025 Regulating Industrial and Medical Uses of Industrial Hemp 14

Article (11) Import Permit for Industrial Hemp Products 1. It is prohibited to import Industrial Hemp products except after the issuance of an import permit from the Ministry of Foreign Trade, and the fulfillment of the necessary approvals and requirements from the concerned Local Authority responsible for practicing the Activity in the emirate, including security clearances. 2. An Import Permit for consignments of Industrial Hemp products shall be issued by the Ministry of Foreign Trade in accordance with the following conditions and controls: a. The applicant shall be licensed to practice the Activity of import and export in accordance with the provisions of Article (10) of this Decree by Law. b. The commercial registration of the applicant shall be available. c. A certificate from laboratories accredited by the Ministry of Industry and Advanced Technology shall be available, confirming that the concentration of tetrahydrocannabinol (THC) does not exceed (0.3%) in the products intended for import in the consignment. d. The quantity required to be imported for industrial purposes shall be subject to the approval of the Ministry of Industry and Advanced Technology. e. The products intended for import shall be on the list of products and uses specified by the Executive Regulations of this Decree by Law. f. A valid contract between the exporter in the country of export and the applicant in the State, duly authenticated, shall be available. g. A certificate of origin for the products intended for import, issued by the competent authority in the country of export and duly authenticated, shall be available. h. A valid insurance coverage for the consignment shall be available. i. A product label card for the products to be imported shall be available. j. Any other conditions and controls specified by the Executive Regulations of this Decree by Law. 3. The Ministry of Foreign Trade may verify the fulfillment of the conditions and requirements referred to in Clause (2) of this Article, including shipping conditions, through inspection of the consignments in coordination with the concerned Local

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Federal Decree by Law of 2025 Regulating Industrial and Medical Uses of Industrial Hemp 15 Authority, and it may request any additional data or documents, as well as any additional approvals from the competent authorities in the State, as the case may be. 4. The Executive Regulations of this Decree by Law shall specify the time frames for reviewing the application, the validity period of the Import Permit, and the cases for its revocation.

Article (12) Industrial Hemp Products Export Permit 1. The export of Industrial Hemp products shall be prohibited except after the issuance of a permit by the Ministry of Foreign Trade and the fulfillment of the necessary approvals and requirements by the Local Authority concerned with the practice of the Activity in the Emirate, including security clearances. 2. The Industrial Hemp Products Export Permit shall be issued by the Ministry of Foreign Trade in accordance with the following conditions and controls: a. The applicant shall be licensed to practice the Import and Export Activity in accordance with the provisions of Article (10) of this Decree by Law. b. Availability of commercial registration for the applicant. c. Availability of the industrial license if the applicant is an industrial establishment. d. Availability of approval from the competent government authority in the country of import for the importation of Industrial Hemp products. e. Availability of a certificate from laboratories accredited by the Ministry of Industry and Advanced Technology, stating that the concentration of Tetrahydrocannabinol (THC) does not exceed (0.3%) in the products to be exported in the consignment. f. There shall be consistency between the products to be exported, and the License issued for practicing the Import and Export Activity. g. Availability of a valid contract between the exporter and the importing establishment for Industrial Hemp products in the country of import. h. Availability of a certificate of origin for the products to be exported, issued by the Ministry of Foreign Trade. i. Availability of valid insurance for the consignment.

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Federal Decree by Law of 2025 Regulating Industrial and Medical Uses of Industrial Hemp 16 j. Availability of a product label card for the products to be exported. k. Any other conditions and controls specified by the Executive Regulations of this Decree by Law. 3. The Ministry of Foreign Trade may, during the process of verifying the fulfillment of the conditions and requirements referred to in Clause (2) of this Article, request any additional data or documents, as well as request any additional approvals from the competent authorities in the State, as the case may be. 4. The Executive Regulations of this Decree by Law shall specify the timeframes for reviewing the application, as well as the validity period of the Export Permit and the cases for its revocation.

Article (13) Storage of Industrial Hemp Seeds and Seedlings Licensees shall, in accordance with the provisions of this Decree by Law, comply with the following: 1. Providing secured and monitored warehouses using modern technological means for storing Industrial Hemp seeds and seedlings, including the requirement to place warning labels. 2. Connecting the monitoring systems in the warehouses with the Authority and the concerned security authorities, and verifying that employees in the storage areas have obtained security approvals. 3. Requiring employees in the warehouses to cooperate with inspectors to verify the accuracy of data and the safety of storage. 4. Providing suitable environmental and technical conditions for the storage of Industrial Hemp seeds and seedlings to maintain their quality, as follows: a. Providing a suitable temperature to maintain the quality of the seeds and prevent their damage or loss of viability due to high temperatures. b. Providing effective ventilation systems in storage areas of dried plant materials, such as fibers and flowers, to ensure the prevention of mold formation or deterioration.

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Federal Decree by Law of 2025 Regulating Industrial and Medical Uses of Industrial Hemp 17 c. Taking the necessary measures to protect the stored materials from direct sunlight, high humidity, and the spread of insects or pests, in accordance with the approved health and safety requirements. 5. Separating imported or to-be-exported seeds from other consignments and materials. 6. Adherence to other standards, controls, and conditions for the storage of Industrial Hemp seeds and seedlings according to the relevant Activity, as specified by the Executive Regulations of this Decree by Law.

Article (15) Disposal of Industrial Hemp Seeds and Seedlings 1. A Licensee is prohibited from disposing of Industrial Hemp seeds and seedlings to those not licensed to practice the Activities specified in this Decree by Law or to those not licensed to practice the Activity of manufacturing medical products containing Industrial Hemp compounds or raw materials extracted from Industrial Hemp that are involved in the manufacturing of medical products in accordance with the legislation related to Medical Products and Pharmaceutical Establishments. 2. The Disposition of Industrial Hemp seeds and seedlings shall be carried out in accordance with the procedures and controls specified by the Executive Regulations of this Decree by Law. 3. Contracts for the Disposition of Industrial Hemp seeds and seedlings shall be concluded after the approval of the Licensing Authority and the concerned Local Authority, and in

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Federal Decree by Law of 2025 Regulating Industrial and Medical Uses of Industrial Hemp 18 accordance with the controls and contract templates specified by the Executive Regulations of this Decree by Law, provided they include, but are not limited to, the following data: a. Identity and capacity of the parties. b. Contract number and date of conclusion. c. Date and place of delivery. d. The quantity disposed of. e. The destination of the Industrial Hemp seeds and seedlings. f. The reason for Disposition and the intended use of the Industrial Hemp. 4. If the Licensee is unable to dispose of the Industrial Hemp seeds or seedlings, in whole or in part, due to their damage or destruction as a result of a force majeure or a sudden accident, they shall notify the Licensing Authority and the concerned Local Authority thereof within (7) seven working days from the date of the occurrence of the damage to investigate and confirm the incident and take the necessary measures in this regard.

Article (16) Circulation of Industrial Hemp Products 1. Products manufactured from Industrial Hemp shall be circulated in accordance with the controls, systems, and requirements stipulated in the legislation in force in this regard. 2. For the purpose of applying Clause (1) of this Article, circulation means any form of commercial promotion of products, including, but not limited to, the following: a. Selling or purchasing the products, offering them for sale, marketing them, or donating them. b. Distributing, re-distributing, or exporting the products. c. Storing the products for commercial purposes. 3. Without prejudice to the legislation in force in the State, the Licensee shall provide the following data when circulating any product containing Industrial Hemp compounds: a. The Industrial Hemp Symbol. b. The License number and date. c. A statement of the content and percentage of the compound used in the product.

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Federal Decree by Law of 2025 Regulating Industrial and Medical Uses of Industrial Hemp 19 d. The indications and contraindications for use and any potential harmful effects of the product. e. Displaying or affixing this data on the product with an irremovable label in clear Arabic and English script and in a visible place to facilitate its reading. 4. Advertising and promotion of Industrial Hemp products shall be prohibited except after obtaining the approval of the Licensing Authority and in accordance with the conditions and controls issued by a decision thereof in coordination with the authorities concerned with media regulation.

Article (18) Destruction or Disposition of Industrial Hemp Seeds, Seedlings, or Products 1. The destruction or Disposition of Industrial Hemp seeds, seedlings, or products shall be prohibited, except after obtaining approval from the Licensing Authority and under its supervision. 2. The approval for the destruction or Disposition of Industrial Hemp seeds, seedlings, or products shall be issued in accordance with the following conditions and controls:

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Federal Decree by Law of 2025 Regulating Industrial and Medical Uses of Industrial Hemp 20 a. Providing the necessary data about the Industrial Hemp seeds, seedlings, or products intended for destruction or Disposition of in terms of their type, quantity, and the concentration of Tetrahydrocannabinol (THC) according to the latest certified analysis. b. Submitting a Disposition plan specifying the proposed destruction method, the location of destruction, the equipment used, and the documents necessary to ensure the tracking of the destruction process and its compliance with the general rules, requirements, and controls issued in accordance with the environmental and health legislation in force in this regard. c. Fulfilling any other conditions and controls for the destruction or Disposition of Industrial Hemp seeds, seedlings, or products specified by the Executive Regulations of this Decree by Law. 3. The destruction or Disposal process shall be carried out within the State in the presence of an official representative from the Local Police Authority and the Licensing Authority, with an official report being drafted documenting the type, quantity of materials, and the method of destruction, according to the template approved in the Executive Regulations of this Decree by Law. 4. The approval for the destruction and Disposition of Industrial Hemp seeds, seedlings, or products shall be valid for the period specified by the Licensing Authority. The applicant shall obtain a new approval for each batch they desire to destroy or dispose of. 5. Adulterated Industrial Hemp products shall be destroyed in accordance with the controls, requirements, and procedures stipulated in the legislation related to commercial fraud in force in this regard. 6. With the approval of the Licensing Authority, Industrial Hemp seeds, seedlings, or products may be spared from destruction, and used for scientific research or studies, in accordance with the controls and conditions specified by the Executive Regulations of this Decree by Law, ensuring full supervision and preventing their use for unauthorized purposes.

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Federal Decree by Law of 2025 Regulating Industrial and Medical Uses of Industrial Hemp 21

Article (19) Procedures for Obtaining and Renewing a License 1. The application for obtaining or renewing a License shall be submitted to the Licensing Authority in accordance with the forms and procedures approved thereby, accompanied by all required data and documents. 2. The Licensing Authority shall decide on the application and notify the applicant of the outcome within (60) sixty days from the date of submitting a complete application accompanied by all data and documents. 3. The lapse of the period mentioned in Clause (2) of this Article without a decision on the application and without notifying the applicant of the outcome shall be deemed a rejection of the application. 4. The License shall be valid for (1) one year from its date of issuance, and may be renewed for similar periods in accordance with the procedures and controls in effect at the time of renewal, provided that the Licensee continues to fulfill their obligations in accordance with the provisions of this Decree by Law, its Executive Regulations, and the resolutions issued in implementation thereof.

Article (21) Conditions for the License Applicant and Obligations of the Licensee 1. The owners or partners of the agricultural company, commercial company, nursery, or factory applying for a License to practice any of the Activities mentioned in Article (2) of this Decree by Law shall meet the following: a. To have completed (21) twenty-one calendar years of age and to enjoy full legal capacity. b. To be of good conduct and reputation and not to have been previously convicted of a felony or a misdemeanor involving moral turpitude or breach of trust, unless they have been rehabilitated. c. To obtain the necessary approvals from the competent authorities. d. Any other conditions specified by the Executive Regulations of this Decree by Law. 2. The Licensee shall comply with the following: a. The legislation in force in the State, including this Decree by Law, its Executive Regulations, and the resolutions issued in implementation thereof. b. The conditions and controls of the License. c. Not to partially or fully cease the licensed Activity, except after obtaining prior approval from the Licensing Authority, and in accordance with the controls specified by the Executive Regulations of this Decree by Law. d. Not to subcontract the licensed activities to third parties. e. To provide the information, data, documents, or reports requested by the Licensing Authority. f. Not to provide any false or misleading information, data, documents, or reports to the Licensing Authority, other concerned authorities, or law enforcement authorities. g. To qualify and train their employees on the regulations, systems, and rules related to Industrial Hemp issued in accordance with the provisions of this Decree by Law, including emergency procedures in case of theft, loss, or accidents. h. To provide the Licensing Authority with quarterly periodic reports on the licensed Activity to enable the Licensing Authority to supervise and monitor the Activity, in

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Federal Decree by Law of 2025 Regulating Industrial and Medical Uses of Industrial Hemp 23 accordance with the templates specified by the Executive Regulations of this Decree by Law. i. Any other obligations specified by the Executive Regulations of this Decree by Law. 3. The owner of the agricultural company, commercial company, nursery, or factory, and the person responsible for its actual management shall be responsible for violations that occur therein whenever they are aware thereof.

Article (22) Unified Electronic Register 1. A unified electronic register shall be established at the Ministry, in which all data and information related to Licensees, the type of Activity related to Industrial Hemp, and other data and information specified by the Executive Regulations of this Decree by Law shall be recorded. The Executive Regulations of this Decree by Law shall also specify the Federal and Local Authorities and other entities to whom the register will be made available. 2. The Federal and Local Authorities and Licensees shall record all data and information in the register referred to in Clause (1) of this Article, and shall update it periodically in accordance with the controls and procedures specified by the Executive Regulations of this Decree by Law.

Article (23) National System for Tracking Industrial Hemp Seeds, Seedlings, and Products A National System for Tracking Industrial Hemp seeds, seedlings, and products in the State shall be established. A resolution of the Cabinet shall specify the authority responsible for establishes the system, the sources of data and information to be stored therein, the controls and procedures for recording, preserving, managing, using, circulating, and exchanging such data, and the target categories and authorities entitled to access the system, including Licensing Authorities, Federal and Local Authorities concerned with customs inspection. The resolution shall also define the mechanisms for connecting this system with the electronic

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Federal Decree by Law of 2025 Regulating Industrial and Medical Uses of Industrial Hemp 24 system stipulated pursuant to the provisions of Federal Decree by Law No. (30) of 2021, as amended, or any other law that may supersedes it, as well as any other relevant national tracking systems in the concerned Federal and Local Authorities, and the obligations of these authorities to provide the authority designated by the Cabinet with any available data and information available to them or to their affiliated establishments.

Article (24) Maintaining Records The Licensee must maintain organized records detailing the scope of their licensed Activities and the date on which they were conducted, the quantities of Industrial Hemp, its seeds, seedlings, and products, the quantities and types of seeds, seedlings, or products imported, exported, manufactured, circulated, or distributed, the authorities and persons with whom transactions were conducted, the quantity supplied or exported to any entity, and an inventory of damaged or deteriorated materials, including the date and method or procedures for their destruction or safe Disposition. These records shall be kept for no less than (5) five years starting at the end of each fiscal year, in accordance with what is specified by the Executive Regulations of this Decree by Law.

Article (25) Notifications Related to Industrial Hemp Seeds, Seedlings, and Products The following cases shall be reported to the Licensing Authority in accordance with the procedures, mechanisms, and conditions stipulated in the legislation in force in this regard: 1. Defects detected in Industrial Hemp seeds, seedlings, or products. 2. Complaints concerning the quality of Industrial Hemp products. 3. Any complaint or report to the recall of Industrial Hemp products inside or outside the State. 4. Suspected fraud, counterfeiting, or illicit trade involving Industrial Hemp seeds, seedlings, or products, or any other practices suspected of violating the provisions of the Decree by Law.

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Federal Decree by Law of 2025 Regulating Industrial and Medical Uses of Industrial Hemp 25 The Licensing Authority shall, in coordination with the Authority, the police authorities, and local security authorities, as required, investigate the notifications received, verify their accuracy and validity, and take the necessary measures to prevent recurrence of such notification, in accordance with the procedures, mechanisms, and conditions stipulated in the legislation in force in this regard.

Article (26) Control and Supervision 1. The Licensing Authority shall directly undertake the following: a. Supervising the implementation of the provisions of this Decree by Law in coordination with the competent Federal and Local Authorities in the State. b. Carrying out control, inspection, and supervision of the Licensees, the cultivated lands, seedlings, and licensed Activities involving Industrial Hemp, to verify compliance with the provisions of this Decree by Law, its Executive Regulations, and the resolutions issued in implementation thereof, and coordinating with the competent Federal and Local Authorities whenever necessary, in accordance with the applicable legislation. 2. The Authority and the local police authorities, each within its competence, shall carry out control and inspection over the Licensees engaged the Activity of cultivating Industrial Hemp, and over the cultivated lands and seedlings, to verify compliance with the provisions of this Decree by Law, its Executive Regulations, and the resolutions issued in implementation thereof. 3. The Executive Regulations of this Decree by Law shall specify the compliance requirements for the inspection of Licensees, including ensuring the traceability of Industrial Hemp throughout all stages of its production, conversion, manufacturing, marketing, and the import and export of its products, in order to prevent the misuse of Industrial Hemp or its products in any illegal activities, in accordance with the provisions of this Decree by Law, its Executive Regulations, and the resolutions issued in implementation thereof, and to prevent the illicit use of Industrial Hemp or its products within otherwise legal activities.

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Federal Decree by Law of 2025 Regulating Industrial and Medical Uses of Industrial Hemp 26

Article (27) Administrative Sanctions 1. Whoever violates the provisions of this Decree by Law, its Executive Regulations, and the resolutions issued in implementation thereof shall be subject to one or more of the following administrative sanctions: a. Warning. b. An administrative fine of not less than (AED 10,000) ten thousand Dirhams and not exceeding (AED 1,000,000) one million Dirhams. The administrative fine shall be doubled in case of recidivism, provided that it shall not exceed (AED 2,000,000) two million Dirhams. c. Temporary suspension of Licenses, Approvals, and Permits for a period not exceeding (6) six months, subject to renewal. d. Revocation of Licenses, Approvals, and Permits. 2. The violator shall be required to bear the expenses and costs of removing and remedying the damages resulting from the violation in the event of their failure to remove or remedy it.

Article (28) Grievance 1. Any entitled person may file a written grievance against the decisions or sanctions imposed pursuant to the provisions of this Decree by Law, its Executive Regulations, and the resolutions issued in implementation thereof, within a period not exceeding (60) sixty days from the date of being notified of the decision or sanction being grieved. 2. A Grievance Committee shall be established within the Licensing Authority, and its formation and rule of procedures shall be determined by a decision from the Head of the Licensing Authority or their delegate. This Committee shall be responsible for deciding on the grievances referred to in Clause (1) of this Article within (60) sixty days from the date of their submission. The decision issued on the grievance shall be final, and the grievant shall be notified thereof.

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Federal Decree by Law of 2025 Regulating Industrial and Medical Uses of Industrial Hemp 27 3. Lawsuits concerning disputes arising from the implementation of the provisions of this Decree by Law, its Executive Regulations, and the resolutions issued in implementation thereof, shall not be accepted at the first instance, except after the submission of the aforementioned grievance and its resolution, or upon the expiration of the legally prescribed period for its adjudication, as the case may be.

Article (30) 1. Whoever commits any of the following acts shall be punished by imprisonment for a period of not less than (3) three months and a fine of not less than (AED 100,000) one hundred thousand Dirhams, or by either of these two penalties: a. Misusing Industrial Hemp in activities other than those authorized pursuant to the provisions of this Decree by Law. b. Engaging in any activities regulated by the provisions of this Decree by Law concerning Industrial Hemp without obtaining a License. c. Transporting Industrial Hemp seeds and seedlings without obtaining the required approvals pursuant to the provisions of this Decree by Law, its Executive Regulations, and the resolutions issued in implementation thereof. d. Failing to comply with the approved contract templates for the Disposition of Industrial Hemp seeds or seedlings. e. Disposing of Industrial Hemp seeds, seedlings, or its products by an unlicensed person in accordance with the provisions of this Decree by Law, its Executive Regulations, and the resolutions issued in implementation thereof. f. Importing or exporting Industrial Hemp seeds or importing, exporting, or circulating its products for purposes other than those specified in this Decree by Law, its Executive Regulations, and the resolutions issued in implementation thereof.

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Federal Decree by Law of 2025 Regulating Industrial and Medical Uses of Industrial Hemp 28 g. Importing or exporting Industrial Hemp seedlings to or from the State. h. Using Industrial Hemp in the manufacturing of the products referred to in Clause (2) of Article (2) of this Decree by Law. i. Importing the Industrial Hemp products referred to in Clause (2) of Article (2) of this Decree by Law. j. Cultivating Industrial Hemp in excess of the licensed quantities. k. Cultivating Industrial Hemp outside the designated areas approved by the concerned Local Authority or in excess of the licensed areas. l. Possessing or acquiring Industrial Hemp seeds, seedlings, or products without obtaining a License to carry out any of the Activities regulated under the provisions of this Decree by Law. m. Using any materials that may result in increasing the concentration of Tetrahydrocannabinol (THC) above (0.3%), and failing to comply with the controls and requirements for the conversion and manufacturing of Industrial Hemp, including the list of permissible inputs, the technical standards, and specifications for quality and safety control, as determined by the Executive Regulations of this Decree by Law. n. Failing to report when the Tetrahydrocannabinol (THC) concentration exceeds (0.3%) in accordance with the provisions of Articles (7) and (9) of this Decree by Law. o. Submitting false, misleading, or incorrect data or information included in the records referred to in Article (24) of this Decree by Law, or based on which a License or the approvals required in accordance with its provisions were granted. 2. In all cases, upon conviction, the court shall order the confiscation of the Industrial Hemp seeds, seedlings, and products that are in violation of the provisions of this Decree by Law, without prejudice to the rights of a bona fide third party.

Article (31) Whoever commits any of the following acts shall be punished by imprisonment and a fine, or with either of these two penalties: 1. Obstructing judicial enforcement officers from carrying out their duties as specified in this Decree by Law.

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Federal Decree by Law of 2025 Regulating Industrial and Medical Uses of Industrial Hemp 29 2. Deliberately failing to cooperate with any investigation conducted by the Licensing Authority. 3. Failing to notify the Licensing Authority and the concerned Local Authority of the damage or destruction of Industrial Hemp seeds or seedlings within the period stipulated in Clause (4) of Article (15) of this Decree by Law. 4. Violating the requirement to conduct the periodic tests, as specified by the Executive Regulations of this Decree by Law, throughout the production chain from cultivation to post-harvest, in order to ensure that the concentration of Tetrahydrocannabinol (THC) does not exceed (0.3%). 5. Violating the requirement to conduct periodic tests on raw materials and final products to ensure that the concentration of Tetrahydrocannabinol (THC) does not exceed (0.3%), in addition to failing to submit periodic reports thereon to the Licensing Authority and the Ministry of Industry and Advanced Technology. 6. Violating the requirement to submit regular periodic reports on manufacturing operations and production quantities to the concerned Local Authority in accordance with the provisions of the Executive Regulations of this Decree by Law. 7. Failing to comply with the controls for the transport of Industrial Hemp seeds or seedlings as stipulated in Article (8) of this Decree by Law. 8. Destroying or disposing of Industrial Hemp seeds, seedlings, or products in violation of the provisions of this Decree by Law. 9. Violating the obligations related to advertising and promotion as stipulated in Clause (4) of Article (16) of this Decree by Law.

Article (34) Judicial Enforcement The employees of the Federal and Local Authorities, designated by a decision from the Minister of Justice or the head of the local judicial authority, in coordination with the relevant Federal or Local Authorities for carrying out the Activity, as the case may be, shall have the status of judicial enforcement officers to detect violations of the provisions of this Decree by Law, its Executive Regulation, and the resolutions issued in implementation thereof that fall within their respective competence. For this purpose, they may inspect and examine the lands and premises of Activities subject to the provisions of this Decree by Law, review any stocks, goods, products, accounts, documents, records, or related papers, and draft the necessary seizure reports in this regard. A report on the outcomes of their work, along with their recommendations, shall be submitted to the Licensing Authority.