The UAE government issues a federal decree law regulating the industrial and medical uses of industrial hemp

The UAE government issued a federal decree law regulating the industrial and medical uses of industrial hemp, in a way that supports the achievement of sustainable economic development by regulating a new economic sector and a promising market in accordance with international best practices, as it can be used in the clothing, textile, paper and construction industries, as well as the manufacture of legally authorized medical products.

Prohibited and criminalized uses of industrial hemp.

The decree law prohibits the personal or recreational use of industrial hemp in terms of importing, manufacturing or using industrial hemp products related to foodstuffs, nutritional supplements, veterinary products, smoking products and any other products specified by a decision of the Council of Ministers. It is also prohibited to import, manufacture or use cosmetics that contain industrial hemp, with the exception of those that contain oils extracted from seeds or stems of industrial hemp or any other exceptions determined by a decision of the Council of Ministers, taking into account that any compounds that may give a narcotic effect directly or indirectly will be subject to the provisions of this Decree Law and the provisions stipulated in the laws of crimes and penalties, combating narcotic substances, and any other relevant laws.

Regulating activities related to industrial hemp.

Taking into account the legally prohibited and criminalized uses of industrial hemp, the provisions of the Decree Law apply to activities related to industrial hemp that are practiced in the country, including free zones, which are the import and export of industrial hemp seeds, its cultivation in fenced, controlled and protected places, the transport and disposal of its seeds and seedlings, and the manufacture, import, export and circulation of its products as authorized by law. The decree-law also granted each emirate, in accordance with the legislation and regulations in force therein, the authority to ban or restrict all or some activities related to industrial hemp, and in this case the provisions stipulated in the laws of crimes, punishments, control of narcotic substances, and any other relevant laws apply.

The decree law allows for the first time the use of industrial hemp in medical products that contain industrial hemp compounds or raw materials extracted from it, provided that it is regulated in accordance with the Law on Medical Products, the Pharmacy Profession, and Pharmaceutical Establishments.

Controls on the import and export of industrial hemp.

The decree law specifies controls for practicing the activity of importing and exporting industrial hemp seeds in terms of the necessity of obtaining a license from the Ministry of Climate Change and Environment in accordance with specific controls and conditions for licensing, with the necessary licenses being obtained from the local authority concerned with practicing the activity in the emirate. The most important of these controls and conditions are: The applicant for the license must be a licensed agricultural company, and the seeds must be of industrial hemp varieties to be imported or exported within the list of approved varieties in the executive regulations of the law, and the obligation to use imported seeds for the purpose of agriculture only in areas designated by the relevant local authority and within the licensed areas.

Controls for the cultivation of industrial hemp.

The decree law prohibits practicing the activity of cultivating industrial hemp without obtaining a license from the Ministry of Climate Change and Environment and in accordance with specific controls and conditions for licensing and obtaining the necessary licenses from the local authority concerned with practicing the activity in the emirate. The most important of these controls and conditions are: It is mandatory to obtain security approval from a committee that monitors the National Drug Control Agency. The decree law also specifies obligations for those licensed to cultivate industrial hemp, the most important of which are: adherence to cultivation in areas designated by the relevant local authority and within the areas and limits of licensed quantities, and adherence to periodic checks and the number of samples specified by the executive regulations of the law during the production chain from cultivation to post-harvest to ensure that the concentration of THC does not increase (THC) of (0.3%), and inform the Ministry of Climate Change and Environment, the concerned local authority, and the National Drug Control Agency if this percentage is exceeded at any stage of the production chain in order to initiate reservation procedures.

The Decree-Law also regulates the controls and conditions for allocating industrial hemp cultivation areas by the concerned local authority, the most important of which are: that the designated areas be far from residential areas and other agricultural areas, and that they be fenced, monitored, and protected from unauthorized access, as workers in these areas are subject to security approvals and permits. It is also necessary to clearly specify that these areas are prohibited agricultural areas and meet the security conditions and controls set by the Industrial Hemp Cultivation Activity Licensing Committee headed by the National Drug Control Agency, in addition to any Other requirements determined by the concerned local authority.

The decree law prohibits those licensed to practice the activity of cultivating industrial hemp from spreading seeds or planting seedlings of industrial hemp in habitats and natural reserves.

The decree law regulates the disposal of industrial hemp seeds and seedlings according to contracts concluded after the approval of the licensing authority and the relevant local authority. It is prohibited to dispose of industrial hemp seeds and seedlings to those who are not licensed to practice the activities specified in this decree law. The decree law also prohibits the transportation of industrial hemp seeds and seedlings without obtaining approval from the relevant local authority. In the case of transportation to more than one emirate of the country, the approval of each of the relevant local authorities in each emirate must be obtained.

Controls for the manufacture of industrial hemp products.

The decree law prohibits practicing the activity of manufacturing industrial hemp products without obtaining a license from the relevant local authority after the approval of the Ministry of Industry and Advanced Technology. Among the most important licensing controls and conditions are: the obligation to obtain all necessary permits or licenses from the relevant authorities in accordance with the applicable legislation before starting manufacturing or operating processes, and that the industrial hemp products to be manufactured are among the list of approved products and uses, and the existence of an approved quality management system and a system for electronic documentation of each production batch and linking it with the national system for tracking hemp seeds, seedlings, and products. Industrial, and the presence of separate areas in the factory for receiving raw materials, manufacturing, packaging, storage, waste, and shipping in accordance with technical requirements and standards.

The decree law also specifies obligations for those licensed to manufacture industrial hemp products, the most important of which are: refraining from using any materials that may lead to an increase in the concentration of THC (tetrahydrocannabinol).THC(about 0.3%), and adherence to the controls and requirements for the conversion and manufacture of industrial hemp and the list of inputs that may be used in the conversion and manufacturing processes, and the technical standards and standard specifications related to quality control and safety, and refraining from trading compounds extracted from industrial hemp within the country with unauthorized persons, and conducting periodic checks on raw materials and finished products, to ensure that the concentration of THC does not increase.THC) of (0.3%), and inform the licensing authority and the National Narcotics Control Agency of any cases exceeding this percentage in order to initiate seizure procedures.

Controls on the import, export and trading of industrial hemp products.

The decree law regulates the practice of importing and exporting industrial hemp products, as it is prohibited to practice it without obtaining a license from the local authority concerned with issuing commercial licenses and in accordance with the controls and conditions stipulated in the relevant local legislation. It is also prohibited to import and export any shipment of industrial hemp products without permission from the Ministry of Foreign Trade and fulfilling the necessary approvals and requirements from the concerned local authority, including security approvals.

The Decree-Law also regulates the trading of industrial hemp products in any form of commercial promotion, and requires the licensee, when trading any product containing industrial hemp compounds, to provide labels showing the product data, such as: the industrial hemp symbol, the number and date of the license, the content and percentage of the compound used in the product, the indications and contraindications for use, and any potential harmful effects of it.

The Decree-Law also permits, after the approval of the licensing authority, not to destroy seeds, seedlings, or products of industrial hemp, and to benefit from them in research or scientific studies, in accordance with the controls and conditions specified by the executive regulations of the law and in a way that ensures complete control and not using them for purposes other than the authorized ones.

Conditions for the license applicant and licensees’ obligations.

The decree law specifies conditions for the license applicant and general obligations for licensees, the most important of which are: compliance with licensing requirements and controls and the legislation in force in the country, not sublicensing others to practice any of the licensed activities, and not submitting any false or misleading information, data, or documents to the licensing authority, other concerned authorities, or law enforcement authorities. Among the most important conditions for a license applicant who is an owner or partner of an agricultural company, commercial company, nursery, or factory: that he must have completed (21) Gregorian years of age, have full legal capacity, be of good conduct and conduct, and have not previously been convicted of a felony or a freedom-restricting penalty for a misdemeanor that violates honor or trust unless his reputation has been restored, and that he must have obtained the necessary approvals from the relevant authorities.

The Decree Law also requires licensees to maintain regular records showing the type and size of licensed activities and the date of their implementation for a period of no less than (5) years.

National registries and databases associated with industrial hemp.

The Decree-Law regulates the establishment of the national system for tracking seeds, seedlings, and products of industrial hemp, and determines by a decision of the Council of Ministers the entity that establishes it, the sources of data and information that are stored in it, the controls and procedures for its management, use, and circulation, the categories and entities targeted by making the system available to them, and the mechanisms for linking this system with other relevant national tracking systems.

The decree law also stipulates that the Ministry of Climate Change and Environment shall establish a unified electronic registry, in which all data and information related to licensees and the type of activity related to industrial hemp, and other data and information will be recorded, and it specifies the federal, local and other entities to which the registry will be made available and their obligations to register data in it and update it periodically.

Control, supervision and penalties.

The decree law specifies the provisions related to the control and supervision of those licensed to practice activities related to industrial hemp by the licensing authority, and authorizes the National Drug Control Agency and the local police authorities, each within the limits of their jurisdiction, to monitor and inspect those licensed to practice the activity of cultivating industrial hemp, and on cultivated lands and seedlings, to verify compliance with the provisions of this decree law and the decisions issued in implementation thereof.

The Decree Law also specifies administrative penalties and regulates grievance procedures against decisions or penalties that are imposed in accordance with its provisions, executive regulations, decisions issued in implementation thereof, and the time frames related to them. Without prejudice to any more severe penalty stipulated in any other law, the Decree Law punishes with imprisonment of not less than (3) months and a fine of not less than 100 thousand dirhams the perpetrators of acts violating its provisions, including: misusing industrial hemp in activities other than those authorized in accordance with the provisions of this Decree Law, or practicing any of the activities related to industrial hemp without obtaining a license, or disposing of seeds or seedlings of industrial hemp or its products. For unauthorized persons, or using industrial hemp in the manufacture or import of prohibited personal and recreational use products, or cultivating industrial hemp in excess of the licensed quantities or outside the areas designated for that by the relevant local authority or in excess of the licensed areas, and so on.

The decree law also imposes penalties in the event that those licensed to cultivate industrial hemp or manufacture activity of industrial hemp products fail to adhere to periodic inspections, fail to adhere to controls on transporting seeds or seedlings of industrial hemp, and fail to cooperate in any investigation conducted by the licensing authority.