UAE plans federal law to regulate industrial sectors

Abu Dhabi: The UAE will issue a new federal law that will regulate the country's industrial sectors, a top official said.

The industrial sector has developed in various emirates under different regulatory environments, which need to be streamlined.

The new draft adjustment for the federal law number 1 of 1979, related to regulating the industrial sector, is now published at the Ministry of Economy and Financial Affairs website for public consultation, a top official announced yesterday.

As many as 39 articles comprise the draft amendments that seek to set a better environment to enhance the industrial sector across the country.

"We need the feedback of industrialists in the country, as well as their suggestions and complaints, in the context of balancing the industrial sector at the national level and streamlining it across all emirates," Sultan Bin Saeed Al Mansouri, Minister of Economy, said yesterday.

Ministerial visit

The announcement came during the minister's visit to the first phase of the Industrial City of Abu Dhabi (ICAD1), where he met Shaikh Hamed Bin Zayed Al Nahyan, Chairman of the Court of the Abu Dhabi Crown Prince and Chairman of the Higher Corporation for Specialised Economic Zones (Zonescorp).

During his tour, the minister was impressed with the concepts adopted by the corporation, especially its focus on developing well-studied clusters of industries, mainly petrochemicals, aluminum, and steel, while a project for establishing a cluster for metals is being considered.

"More important than the clusters, is the issue of regulations that vary greatly among the seven emirates, and here comes the role of the ministry, which can consider vitalising the role of the committee of economic departments," Shaikh Hamed said.

"The clusters concept applied at Zonescorp, as well as the regulations, and services, and standards such as the one-window-concept, offer an excellent experience that can be generalised federally with the help of the Zonescorp," the minister said. Shaikh Hamed welcomed the initiative and emphasised the importance of regulations.

He said it should be studied whether the regulations are repelling or welcoming foreign investments. They also help in avoiding duplication of efforts at the national level, he said.

"There are about 38 different industrial zones across the country, all operating to different standards, and harmonising the way these zones operate will benefit the country as a whole," Shaikh Hamed said.

Suggestion

Strategic industries

Zonescorp board member Husain Jassem Al Nowais suggested that the country should consider allowing for controlling shares for foreign investors seeking to establish strategic industries that will benefit the economy.

"But such privilege cannot be given to an investment that does not generate benefit for the country's economy, regardless to its value," Al Nowais said.

- A.A.E.