Hemp Legalization
On October 1, 2025, the United Arab Emirates (UAE) Government issued Federal Decree-Law No. (24) that regulates industrial and medical uses of industrial hemp, enabling its use in several industries including textiles, construction, paper, packaging, and manufacture of legally authorized medical products. Industrial hemp is defined to have no more than 0.3% THC. The Decree-Law went into effect from January 1, 2026.
The concerned Local Authority shall determine the areas designated for the cultivation of industrial hemp in the emirate, provided that these areas are far from other agricultural areas and residential areas, and that they are fenced, monitored, and protected against unauthorized access, and marked with identification signs clarifying that it is restricted agricultural area. Licensees shall only be able to cultivate industrial hemp in those designated areas.
The Decree-Law mandates the establishment of a National Tracking System for industrial hemp seeds, seedlings, and products.
It is prohibited to import or manufacture the following industrial hemp products:
- Food products, except of roasted or processed hemp plant seeds rendered non-viable;
- Food supplements;
- Cosmetic products, except for those containing oils extracted from the seeds or stems of Industrial Hemp, or those containing Cannabis resin and the flowering or fruiting tops of Cannabis, tinctures or extracts of Cannabis, and are completely free of tetrahydrocannabinol (THC) in all its forms and its precursor acids, and are completely free of any other compounds derived from Cannabis that may produce a narcotic effect, directly or indirectly, after chemical processing, in accordance with what is determined by a resolution issued by the Cabinet;
- Veterinary products;
- Smoking products; and
- Any other products determined by a resolution from the Cabinet
The use of industrial hemp in medical products containing hemp compounds or raw materials derived from hemp is regulated under the Law on Medical Products, Pharmacy Profession and Pharmaceutical Establishments.
License Types Available
To cultivate industrial hemp or import/export industrial hemp seeds, a license from the Ministry of Climate Change and Environment (Ministry) is required.
Eligibility requirements:
- Applicant must be at least 21 years old and have full legal capacity
- Applicant must be of good conduct and reputation and not to have been previously convicted of a felony or a misdemeanor involving moral turpitude or breach of trust, unless they have been rehabilitated
- Applicant must hold all required approvals from the competent authorities
A license from the Ministry of Climate Change and Environment is required. A license shall be issued in accordance with the following conditions and controls:
- Security clearance from a committee to be established by the Decree-Law which shall be affiliated with the National Anti-Narcotics Authority;
- Applicant must be an agricultural company established in accordance with the legislation in force in the State; and
- Industrial hemp varieties intended for cultivation must be from the list of varieties specified by the law’s executive regulations.
A license from the Ministry of Climate Change and Environment (Ministry) is required. A license shall be issued in accordance with the following conditions and controls:
- Applicant must be a licensed agricultural company;
- Seeds must be from approved industrial hemp varieties listed in the law’s executive regulations;
- Imported seeds may only be used for cultivation in designated areas by local authorities and within licensed plots;
- Applicant shall submit a declaration of non-Disposition of the industrial hemp seeds to anyone not licensed in accordance with the provisions of the Decree-Law; and
- Applicant shall submit an operational plan that clarifies the mechanism of cultivation, storage, distribution, sampling, and disposition, with a statement of all partners.
In addition to the import/export license, an import-export permit is also necessary for each import/export. A permit shall be issued in accordance with the following conditions:
- Applicant must be licensed to import/export industrial hemp seeds;
- Compliance with the requirements of the agricultural consignment import and export service and agricultural quarantine procedures;
- Seeds must be from approved industrial hemp varieties listed in the law’s executive regulations;
- Quantities of seeds to be imported or exported shall be in accordance with the standards, controls, and conditions specified by the law’s executive regulations; and
- A certificate from the country of origin shall accompany each consignment, confirming that the concentration of THC is not greater than 0.3% (in case of import), or a certificate from laboratories accredited by the Ministry shall accompany each consignment, confirming that the concentration of THC is not greater than 0.3% (in case of export).
An approval from the concerned Local Authority is required to transport industrial hemp seeds or seedlings. If transportation occurs across more than one emirate of the State, an approval is required from each of the concerned Local Authorities in each emirate.
An approval shall be issued in accordance with the following conditions:
- Verifying the existence of systems approved by the concerned Local Authority to track consignments and monitor means of transport, including containers secured with metal seals, and preventing the replacement of their contents or their mixing with other products or materials, or their opening or dispersal in places other than those intended;
- Transportation occurs only to entities licensed to practice the activities permitted by the Decree-Law;
- Seeds or seedlings must be from a licensed source and listed in the list of varieties specified by the law’s executive regulations; and
- Presence of a certificate proving that the concentration of THC does not exceed 0.3%, issued by laboratories established and accredited within the State by the concerned federal or local authorities.
A license from the concerned Local Authority is required, after obtaining an approval of the Ministry of Industry and Advanced Technology. A license shall be issued in accordance with the following conditions and controls:
- Applicant must be a company established in accordance with the legislation in force in the State;
- Industrial hemp products to be manufactured must be included in the approved list of products and uses specified by the law’s executive regulations;
- Applicant must have an approved quality management system or a Good Manufacturing Practice (GMP) certificate;
- Applicant must have an internal laboratory or proof of a contract with an external laboratory accredited in the State;
- Applicant must have an electronic documentation system for each production batch and it must be linked to the National Tracking System;
- There must be separate factory zones for receiving raw material, manufacturing, packaging, storage, waste management, and shipping in accordance with technical standards; and
- Applicant must comply with obtaining all necessary permits or licenses from the concerned authorities in accordance with the applicable legislation before commencing any manufacturing or operating processes.
A license from the Local Authority is required. A license shall be issued in accordance with the conditions and controls stipulated in the local legislation related to the regulation of practicing economic activities in the State, and in particular, the determination of the amount or quantity of industrial hemp products licensed for import or export.
In addition to an import/export license, a permit must also be obtained for each import/export shipment from the Ministry of Foreign Trade.
An import permit shall be issued in accordance with the following conditions and controls:
- Applicant must have an import/export license;
- Commercial registration of the applicant;
- Certificate from laboratories accredited by the Ministry of Industry and Advanced Technology shall be available, confirming that the concentration of tetrahydrocannabinol (THC) does not exceed (0.3%) in the products intended for import in the consignment;
- Quantity required to be imported for industrial purposes shall be subject to approval by the Ministry of Industry and Advanced Technology;
- Products intended for import shall be on the list of products and uses specified by the law’s executive regulations;
- Valid contract between the exporter in the country of export and the applicant in the State, duly authenticated;
- Certificate of origin for the products intended for import, issued by the competent authority in the country of export and duly authenticated;
- Valid insurance coverage for the consignment; and
- Product label card for the products to be imported.
An export permit shall be issued in accordance with the following conditions and controls:
- Applicant must have an import/export license;
- Commercial registration of the applicant;
- Approval from the competent government authority in the country of import for the importation of industrial hemp products;
- Certificate from laboratories accredited by the Ministry of Industry and Advanced Technology shall be available, confirming that the concentration of tetrahydrocannabinol (THC) does not exceed (0.3%) in the products exported in the consignment;
- There must be consistency between the products to be exported and the license issued for practicing the import/export activity;
- Valid contract between the exporter and the importing establishment for industrial hemp products in the country of import;
- Certificate of origin for the products to be exported, issued by the Ministry of Foreign Trade;
- Valid insurance coverage for the consignment; and
- Product label card for the products to be exported.
Licensing process:
- The application for an industrial hemp license must be submitted to the Licensing Authority accompanied by all required data and documents.
- Within 60 days from the application submission date, the Licensing Authority will notify the applicant of whether their application has been accepted.
- Once issued, the license is valid for one year from its date of issuance, and may be renewed for similar periods as long as the licensee continues to fulfill their obligations in accordance with all relevant laws.
For more details on post-licensing requirements, please see the regulations.
How Can HempCBDbusinessplans Templates Help Start or Grow Your Hemp CBD Business?
A business plan is essential for securing funding. It will also help you understand how much money it will take to start a hemp CBD business and how much profit it could make. A well-structured business plan can make all the difference in demonstrating your proposed hemp CBD business’ compliance with regulations and its operational viability.
Our complete hemp CBD business plan template package is everything you need to create a professional business plan for a hemp CBD business with expert financials and projections. A complete hemp CBD business plan template package includes:
- Excel Financial Model: change variables and immediately see the impact, break down operational and capital costs, know how much it will take to get into the business and the potential profits.
- Word Business Plan: value proposition, market analysis, marketing strategy, operating plan, organizational structure, financial plan and more.
- PowerPoint Pitch Deck: provide a quick overview of your hemp CBD business plan.
'70% ready to go' business plan templates
Our hemp/CBD financial models and business plan templates will help you estimate how much it costs to start and operate your own hemp/CBD business, to build all revenue and cost line-items monthly over a flexible seven year period, and then summarize the monthly results into quarters and years for an easy view into the various time periods. We also offer investor pitch deck templates.
Best Selling Templates
-

Hemp Cultivation Business Plan Template
Price range: $75.00 through $275.00 Select options This product has multiple variants. The options may be chosen on the product page -

Hemp CBD Financial Model All in One
$200.00 Select options This product has multiple variants. The options may be chosen on the product page -

CBD Retail Investor Pitch Deck Template
$75.00 Select options This product has multiple variants. The options may be chosen on the product page
Cannabis business plan templates are available at cannabusinessplans.com.


