The UAE Government has issued a Federal Decree-Law regulating the industrial and medical uses of industrial hemp, establishing a new economic sector aligned with international best practices and aimed at supporting sustainable economic development.
The new Decree-Law enables the use of industrial hemp across several industries, including textiles, construction, paper and packaging, as well as in the manufacture of legally authorised medical products, while imposing strict controls and prohibitions to prevent misuse.
The Decree-Law explicitly prohibits the personal or recreational use of industrial hemp.
UAE hemp laws
This includes the import, manufacture, or use of industrial hemp products related to food products, dietary supplements, veterinary products, smoking products, or any other products specified by Cabinet decision.
It also prohibits the import, manufacture, or use of cosmetic products containing industrial hemp, except for those containing oils extracted from industrial hemp seeds or stalks, or other exceptions determined by Cabinet decision.
Any compounds that may directly or indirectly produce a narcotic or psychoactive effect are subject to the provisions of the Decree-Law, the laws of crimes and penalties, the laws combating narcotics, and other related legislation.
Covered activities include the import and export of industrial hemp seeds, their cultivation in fenced, monitored, and protected areas, transportation, disposal of seeds and seedlings, and the manufacturing, import, export, and trading of hemp-derived products as authorised under the Decree-Law.
Each emirate is granted the authority, within its jurisdiction and in line with local regulations, to prohibit or restrict any industrial hemp-related activity. In such cases, penalties stipulated in criminal, narcotics control, and other relevant laws will apply.
Medical use permitted for the first time
For the first time, the Decree-Law permits the use of industrial hemp in medical products containing hemp compounds or raw materials derived from hemp, subject to regulation under the Law on Medical Products, Pharmacy Profession and Pharmaceutical Establishments.
The Decree-Law mandates obtaining a licence from the Ministry of Climate Change and Environment to import and export industrial hemp seeds, alongside fulfilling permit requirements of the relevant local authorities.
Key licensing conditions include that applicants must be licensed agricultural companies, seeds must originate from approved industrial hemp varieties listed in the executive regulations, and imported seeds may only be used for cultivation in designated areas approved by local authorities and within licensed plots.
Cultivation of industrial hemp is prohibited without a licence from the Ministry of Climate Change and Environment and approval from the relevant local authority. Cultivators must also obtain security clearance from a committee under the National Anti-Narcotics Authority.
Designated zones
Licensed cultivators must comply with designated cultivation areas, production limits, and periodic testing throughout the production cycle to ensure tetrahydrocannabinol (THC) levels do not exceed 0.3 per cent. Any exceedance must be reported to the Ministry of Climate Change and Environment, the relevant local authority, and the National Anti-Narcotics Authority.
The Decree-Law regulates the allocation of designated cultivation zones, which must be secured, fenced, monitored, and isolated from residential and other agricultural areas.
Workers must obtain security clearances, and zones must meet security requirements set by the National Anti-Narcotics Authority committee and competent local authorities.
Cultivation in natural habitats or protected areas is strictly prohibited.
Manufacturing and trade
Disposal of industrial hemp seeds and seedlings is regulated under approved contracts and may not be conducted with unlicensed parties.
Transport of seeds and seedlings is prohibited without approval from the competent local authority. Where transport occurs across more than one emirate, approval must be obtained from each relevant authority involved.
Manufacturing industrial hemp products is prohibited without a licence from the relevant local authority following approval from the Ministry of Industry and Advanced Technology.
Licensing requirements include obtaining all necessary permits before operations begin, ensuring products are included on approved lists, implementing an accredited quality management system, and adopting an electronic documentation system linked to the national tracking system.
Factories must also maintain separate zones for raw materials, manufacturing, packaging, storage, waste management, and shipping.
Licensed manufacturers must ensure THC levels do not exceed 0.3 per cent, refrain from trading with unlicensed parties, conduct periodic testing, and notify authorities of any exceedances.
Importing hemp products
Importing or exporting industrial hemp products requires a licence from the competent local authority and prior approval from the Ministry of Foreign Trade, alongside all required security clearances.
Licensees trading products containing industrial hemp compounds must provide clear labelling, including the industrial hemp symbol, licence details, compound concentration, usage indications and contraindications, and potential harmful effects.
With approval from the licensing authority, industrial hemp seeds, seedlings, or products may be used for scientific research under strict controls specified in executive regulations.
Applicants must be at least 21 years old, of good conduct, legally capable, and free of relevant criminal convictions unless legal standing has been restored.
Licensees must maintain detailed records for at least five years and must not subcontract licensed activities or provide false or misleading information.
National tracking system
The Decree-Law mandates the establishment of a National Tracking System for industrial hemp seeds, seedlings, and products, with governance defined by Cabinet decision. A unified electronic registry will be created by the Ministry of Climate Change and Environment to record all licensing data, accessible to designated federal and local authorities.
Licensing authorities, the National Anti-Narcotics Authority, and local law enforcement bodies are empowered to monitor and inspect licensed activities to ensure compliance.
Penalties for violations
Without prejudice to stricter penalties under other laws, the Decree-Law imposes criminal penalties including imprisonment of no less than three months and fines of no less than AED100,000 ($27,225) for violations such as unlicensed activity, misuse, unauthorised disposal or transfer, prohibited personal use, or cultivation outside approved zones.
Additional penalties apply for failure to conduct mandatory testing, breaches of transport regulations, or lack of cooperation during investigations.
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