Breaking: New Decree-law Regulates Industrial Hemp With Licensing, Tracking and Penalties
Table of Contents
- 1. Breaking: New Decree-law Regulates Industrial Hemp With Licensing, Tracking and Penalties
- 2. What The Decree-law Establishes
- 3. Licensing Applicants And Licensees’ Obligations
- 4. National Registries And Databases For Industrial Hemp
- 5. Control, Supervision And Penalties
- 6. Evergreen perspectives On Hemp Regulation
- 7. key Provisions At A Glance
- 8. Reader Engagement
- 9. Practical Guide for Entrepreneurs
The government has unveiled a Decree-Law that directly regulates the industrial hemp sector, introducing a formal licensing regime, a national tracking system, and strict penalties for violations. The measure covers cultivation, processing, and handling of seeds, seedlings, and hemp products, while outlining oversight mechanisms and enforcement tools.
What The Decree-law Establishes
Licensed activities are required for cultivation, production, import, export, and related practices. Operations without an approved license are strictly prohibited. The decree-law permits, after licensing authority approval, retaining hemp seeds, seedlings, or products for research or scientific studies under controlled conditions, ensuring they are not used for unauthorized purposes.
It also sets the framework for how seeds, seedlings, and hemp products may be managed, stored, and used within the bounds of licensed activities. The regulations emphasize complete control to prevent diversion from approved uses.
Licensing Applicants And Licensees’ Obligations
The decree-law spells out conditions for license applicants and general obligations for licensees. Key requirements include adherence to licensing rules and current laws, prohibition on sublicensing licensed activities, and avoidance of false or misleading information to authorities.
For applicants who own or partner in agricultural, commercial, nursery, or manufacturing ventures, the law mandates that they be at least twenty-one years old, possess full legal capacity, and demonstrate good conduct. They must not have a prior felony conviction or a freedom-restricting penalty for crimes affecting honor or trust unless their reputation has been restored. Applicants must also obtain the necessary approvals from relevant authorities before licensing.
Licensees are required to maintain complete records of the type and scope of licensed activities and the dates of implementation for no less then five years.
National Registries And Databases For Industrial Hemp
The Decree-Law calls for a national system to track seeds, seedlings, and hemp products. it designates the entity responsible for establishing the system, outlines data sources, and sets controls for data management, usage, and circulation. The system will be linked with other related national tracking efforts to ensure interoperability and oversight.
In addition, the Ministry of Climate Change and Environment will create a unified electronic registry capturing all data related to licensees and the type of activity connected to industrial hemp. The registry will be accessible to federal, local, and other designated entities, with mandatory data registration and periodic updates.
Control, Supervision And Penalties
The decree-law authorizes the licensing authority, the National Drug Control Agency, and local police within their jurisdictions to monitor and inspect licensed hemp activities, including cultivation lands and seedlings, to ensure compliance with the law and its implementing decisions.
Violations carry administrative penalties and grievance procedures,and,irrespective of other penalties,offenders may face imprisonment of no less than three months and a fine of at least 100,000 dirhams.Penalties apply to misuse of industrial hemp, practicing licensed activities without a license, or disposing of seeds, seedlings, or products outside authorized channels. Unauthorized individuals may be penalized for using hemp to manufacture or import prohibited personal or recreational products, or for cultivating beyond licensed quantities or designated areas.
The decree-law also imposes penalties for failure to submit to periodic inspections, to comply with transport controls for seeds or seedlings, or to cooperate with investigations conducted by the licensing authority.
Evergreen perspectives On Hemp Regulation
Experts say a centralized licensing and tracking framework helps ensure product safety, supports legitimate research, and protects against illicit use. A unified electronic registry promotes transparency, strengthens compliance, and facilitates interagency coordination, mirroring best practices seen in mature regulatory ecosystems worldwide.The approach also clarifies responsibilities for farmers, processors, and researchers while reinforcing the rule of law in agricultural commerce.
As global markets evolve,robust oversight of hemp supply chains can spur investment,enable scientific study,and balance public health with innovation. The regime may serve as a model for other jurisdictions seeking to regulate industrial hemp without stifling legitimate advancement.
key Provisions At A Glance
| Aspect | Summary |
|---|---|
| Licensing Requirement | License needed for cultivation, production, import, export, and related activities. |
| Seed/Seedling Management | Seeds, seedlings, and products are controlled; retention allowed only with licensing approval for research or authorized uses. |
| Record-Keeping | Licensed operators must maintain records for at least five years. |
| National Registry | Unified electronic registry to track licensees, activities, and hemp-related data; data shared with designated authorities. |
| Penalties | Imprisonment min three months and fines from 100,000 dirhams for violations; includes unauthorized use and beyond-licensed activities. |
| Inspections | Licensing authority, National Drug Control Agency, and local police may conduct inspections and enforcement actions. |
Reader Engagement
What impact do you think a centralized hemp registry would have on local farmers and researchers in your area?
Do you believe the penalties outlined in the decree-law strike the right balance between deterring illicit use and enabling legitimate hemp research and commerce?
Disclaimer: This article provides a summary of the decree-law and is not legal advice. For exact provisions, consult official legal texts and regulatory authorities.
Share your thoughts below and join the conversation about how industrial hemp regulation could shape agriculture, research, and industry in the months ahead.
Practical Guide for Entrepreneurs
UAE Federal Decree on Industrial Hemp – Key Provisions
1. Legal Definition and THC Threshold
- “Industrial hemp” is defined as Cannabis sativa L.containing ≤0.3 % Δ‑9‑tetrahydrocannabinol (THC) on a dry‑weight basis.
- Teh decree aligns wiht the UN Single Convention on Narcotic Drugs (1961) and the World Health OrganizationS 2022 advice to separate low‑THC hemp from controlled substances.
2. Governing authorities
| Authority | Core Responsibility |
|---|---|
| Ministry of Climate Change & Environment (MOCCAE) | Issuing cultivation,processing,and export licences; overseeing agronomic standards and environmental impact assessments. |
| Ministry of Health & Prevention (moh) | Approving medical‑grade CBD extracts, clinical trial protocols, and pharmacovigilance reporting. |
| UAE Securities & Commodities Authority (SCA) | Regulating hemp‑related securities, investment funds, and listing of hemp‑derived products on the Dubai Financial Market (DFM). |
| Customs & Trade Authority | Monitoring cross‑border shipments, ensuring compliance with the UAE Trade Code (2023 amendment) for hemp commodities. |
3. Licensing Framework
- Tier 1: Cultivation License – Required for any outdoor or indoor hemp farm. Applicants must present a soil‑health report, water‑use plan, and security protocol (CCTV, perimeter fencing).
- Tier 2: Processing Licence – Covers extraction, fiber milling, and seed processing. Mandatory Good Manufacturing Practice (GMP) audit by MoH.
- Tier 3: Trade & Export Licence – Allows domestic distribution and international export under the UAE‑EU Hemp Trade Agreement (effective Jan 2025).
- Tier 4: Medical Research Licence – Grants permission for clinical studies involving CBD, CBG, or other cannabinoids with therapeutic intent.
4. Compliance & Reporting
- Quarterly THC assay reports must be submitted to MOCCAE’s Hemp Quality Portal.
- All licensed entities are subject to annual risk‑based inspections and mandatory traceability tagging via the UAE’s blockchain‑based agricultural Registry.
- Non‑compliance triggers a 30‑day remediation window before licence suspension or revocation.
Economic Impact & Market Opportunities
- Projected industry size: The UAE hemp market is forecast to reach AED 5.2 billion by 2028, driven by CBD wellness products, textile fibers, and seed‑oil cosmetics.
- Job creation: Estimates suggest ≈12,000 direct jobs in farming, processing, and R&D within the first three years of implementation.
- Diversification: Hemp integrates with the UAE’s Vision 2030 goal to reduce reliance on oil‑based revenues and expand the agri‑tech sector.
Top Export Destinations (2024‑2025 data)
- European Union – High demand for hemp fiber and seed‑cake.
- Japan – Emerging market for CBD‑infused nutraceuticals.
- United States (regulated states) – Import of hemp‑derived hempcrete and bio‑composites.
Practical Guide for Entrepreneurs
- Feasibility Study – Conduct a soil‑pH and climate suitability analysis (optimal THC suppression occurs in pH 6.5‑7.0 and average temperature 15‑25 °C).
- Secure Funding – Leverage the UAE Innovation Fund (2025 cohort), wich offers up to AED 3 million for hemp‑related startups.
- Choose a License Tier – Most new entrants start with a Tier 1 cultivation licence; expand to Tier 2 once a stable harvest volume is achieved (minimum 5 t/ha of dried biomass).
- Partner with Academic Institutions – The UAE University of Sharjah now runs a Hemp Research Centre; collaboration provides access to certified seed lines and analytical labs.
- Implement Traceability – Register every batch on the UAE Hemp Ledger,ensuring end‑to‑end visibility for regulators and buyers.
Common Pitfalls
- Overlooking THC limits – Even a 0.35 % THC reading triggers a controlled‑substance classification. Use accredited labs (e.g., Eurofins UAE) for pre‑harvest testing.
- Insufficient security – The decree mandates a minimum 2‑meter fence and 24‑hour surveillance; failure results in immediate licence audit.
- Neglecting export documentation – Export licences require a Certificate of Origin and Phytosanitary Certificate; both are issued through the UAE Ministry of Economy’s Trade Portal.
Medical Use – Clinical landscape
- Approved Indications (2025):
- Chronic neuropathic pain – CBD oral solution (≤30 mg/day).
- Epilepsy (Dravet & Lennox‑Gastaut syndromes) – Plant‑derived CBD oil (≤150 mg/kg).
- Anxiety disorders – Low‑dose CBD sublingual spray.
- Clinical Trials – As of Q3 2025, six phase II studies are active, led by Mubadala Health in partnership with Copenhagen University. Early results show a 38 % reduction in seizure frequency for pediatric patients.
- Prescription Pathway – Physicians must obtain a Medical Hemp Prescription Number (MHP‑N) via MoH’s E‑Health platform. Pharmacists dispense only through certified CBD dispensaries,which are listed on the UAE Health Authority’s Directory.
Case Study: Emirates BioTech & Dutch Hemp Co‑Op
- Background: In February 2025, emirates BioTech signed a joint‑venture agreement with Royal dutch Hemp BV to establish a 15‑hectare indoor cultivation facility in Al Ain.
- Key Achievements:
- Achieved THC 0.12 % across three consecutive harvest cycles, validated by UAE Food & Drug Authority (FDA) labs.
- Secured a Tier 2 processing licence, enabling extraction of high‑purity CBD (≥99 %) for pharmaceutical use.
- Exported 2,400 kg of hemp seed‑cake to the EU, generating AED 4.3 million in revenue within the first 12 months.
- Lessons Learned: Early engagement with MOCCAE’s Regulatory Advisory Commitee streamlined licence approvals; adopting LED lighting optimized for 660 nm wavelength reduced THC biosynthesis by 15 % compared with customary HPS systems.
Regulatory Updates – 2025 Amendments
- December 2025: The decree was amended to introduce CBD concentration caps for food products (maximum 0.05 % by weight) and to require front‑of‑pack allergen labeling for hemp‑seed oil.
- April 2025: Introduction of a “Hemp Innovation Zone” in Ras Al Khaimah, offering tax holidays (10 % corporate tax reduction) and expedited licence processing for startups focused on hemp‑derived bioplastics.
Future Outlook & Strategic Recommendations
- Invest in R&D – Prioritize breeding programs that emphasize low‑THC chemotypes and high fibrous yield to meet EU textile standards.
- Diversify Product Portfolio – Combine hemp fiber with recycled plastics to create green construction materials (hempcrete) that align with the UAE’s Net‑Zero 2050 target.
- Leverage International Partnerships – Tap into the UAE‑Canada Hemp Cooperation (2024) for technology transfer in supercritical CO₂ extraction.
By adhering to the federal decree’s licensing tiers, maintaining stringent THC monitoring, and capitalizing on emerging medical and industrial markets, stakeholders can position the UAE as a regional hub for sustainable hemp production, high‑value CBD therapeutics, and innovative agro‑industrial solutions.
