New Incentives to Support and Develop the Industrial Sector in UAE

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The new federal decree law No. 25 of 2022, was introduced to support the organization and development of the national industrial sector by increasing the flexibility to adopt more supportive policies and provide incentives.

The law aims to be a key enabler for the industrial sector, increase its investment attractiveness, and encourage local and foreign investment in industrial activities, in coordination with federal and local authorities.

The new law will become effective as of January 2023 and will be applied to all industrial activities in the country, including free, economic, and specialized zones.

The law allows the creation of a package of incentives and enablers for 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.

The decree law enhances the role of the Ministry of Industry and Advanced Technology (MoIAT) in promoting investment in the UAE, as well as in the adoption of advanced technologies and Fourth Industrial Revolution solutions. MoIAT will play an expanded role in developing future industries and stimulating innovation and R&D in line with the National In-Country Value Programme.