People with sleep issues can benefit from the medical use of hemp, experts say. Photo: Alamy Stock Photo
People with sleep issues can benefit from the medical use of hemp, experts say. Photo: Alamy Stock Photo
People with sleep issues can benefit from the medical use of hemp, experts say. Photo: Alamy Stock Photo
People with sleep issues can benefit from the medical use of hemp, experts say. Photo: Alamy Stock Photo

UAE hemp law offers new ways to treat insomnia, anxiety and epilepsy


Daniel Bardsley
  • English
  • Arabic

The UAE’s decision to allow the medical use of industrial hemp has been praised, with the move expected to deliver health benefits without posing a risk of illicit drug use.

A federal decree was issued in December allowing the use of hemp in sectors including health, textiles, construction and packaging.

Prof Michael Barnes, a consultant neurologist who wrote a 2016 report in the UK on the medical use of cannabis, said substances derived from hemp could help with the treatment of a variety of conditions. “Hopefully this will help people in the Emirates, particularly with regard to sleep, anxiety or epilepsy,” he said.

How does it work?

Such potential medical benefits, which may extend to helping with skin conditions and high blood pressure, are caused by a substance in hemp products called cannabidiol, or CBD. In some countries CBD is sold as an oil and in tablets.

Hemp comes from plants with the scientific name Cannabis sativa, but it contains extremely low levels of the psychoactive compound tetrahydrocannabinol, or THC.

Internationally, it is typically agreed on that THC levels in hemp products should be below 0.3 per cent. That means hemp and substances derived from it cannot be used as recreational drugs.

While the federal decree prohibits the personal or recreational use of industrial hemp, Prof Barnes said there was no risk "whatsoever" that such substances could be abused under the ruling.

What is allowed?

The decree legalises the sale of medical products containing hemp compounds or raw materials derived from hemp, as well as those that contain oils extracted from industrial hemp seeds or stalks. Products will be tested to ensure they do not breach the rules.

But manufacturing, importing or using veterinary, food or smoking products derived from hemp is banned, while dietary supplements are also prohibited. Also, anything that produces a narcotic or psychoactive effect is restricted by the country's existing drugs laws.

The import, export and growing of hemp seeds will be tightly controlled under the decree, with a licence required and cultivation restricted to specific secure areas.

In announcing the federal decree, UAE authorities said the move would establish “a new economic sector” and create “a promising market aligned with international best practices”.

What is hemp?

Traditionally, hemp has been used to produce sails, for example, and is also found in hundreds of products including packaging, building materials and animal feed. “Probably the majority of countries worldwide are allowing the use of hemp for industrial use and more particularly for medical [use]. It’s very good for industrial use. It’s a very good, strong stem,” Prof Barnes said.

He added that hemp is “an exceptionally good isolator of carbon”, as it is able to fix far greater quantities than forests.

It is also good at cleaning soil and was used for that purpose in the exclusion zone around the Soviet-era Chernobyl nuclear power plant after the disaster in 1986.

Dr Bharat Pankhania, a senior clinical lecturer at the University of Exeter Medical School in the UK, said people could gain “great relief” from medication containing substances from plants from the cannabis family. “For example, people with multiple sclerosis derive benefit from using cannabinoids,” he said.

Separate to laws allowing the use of hemp and products derived from it, the medical use of cannabis, which contains higher levels of THC than hemp, is legal in 71 countries, Prof Barnes said. The UAE decree has not legalised this use.

ACL Elite (West) - fixtures

Monday, Sept 30

Al Sadd v Esteghlal (8pm)
Persepolis v Pakhtakor (8pm)
Al Wasl v Al Ahli (8pm)
Al Nassr v Al Rayyan (10pm)

Tuesday, Oct 1
Al Hilal v Al Shorta (10pm)
Al Gharafa v Al Ain (10pm)

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Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

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A new relationship with the old country

Treaty of Friendship between the United Kingdom of Great Britain and Northern Ireland and the United Arab Emirates

The United kingdom of Great Britain and Northern Ireland and the United Arab Emirates; Considering that the United Arab Emirates has assumed full responsibility as a sovereign and independent State; Determined that the long-standing and traditional relations of close friendship and cooperation between their peoples shall continue; Desiring to give expression to this intention in the form of a Treaty Friendship; Have agreed as follows:

ARTICLE 1 The relations between the United Kingdom of Great Britain and Northern Ireland and the United Arab Emirates shall be governed by a spirit of close friendship. In recognition of this, the Contracting Parties, conscious of their common interest in the peace and stability of the region, shall: (a) consult together on matters of mutual concern in time of need; (b) settle all their disputes by peaceful means in conformity with the provisions of the Charter of the United Nations.

ARTICLE 2 The Contracting Parties shall encourage education, scientific and cultural cooperation between the two States in accordance with arrangements to be agreed. Such arrangements shall cover among other things: (a) the promotion of mutual understanding of their respective cultures, civilisations and languages, the promotion of contacts among professional bodies, universities and cultural institutions; (c) the encouragement of technical, scientific and cultural exchanges.

ARTICLE 3 The Contracting Parties shall maintain the close relationship already existing between them in the field of trade and commerce. Representatives of the Contracting Parties shall meet from time to time to consider means by which such relations can be further developed and strengthened, including the possibility of concluding treaties or agreements on matters of mutual concern.

ARTICLE 4 This Treaty shall enter into force on today’s date and shall remain in force for a period of ten years. Unless twelve months before the expiry of the said period of ten years either Contracting Party shall have given notice to the other of its intention to terminate the Treaty, this Treaty shall remain in force thereafter until the expiry of twelve months from the date on which notice of such intention is given.

IN WITNESS WHEREOF the undersigned have signed this Treaty.

DONE in duplicate at Dubai the second day of December 1971AD, corresponding to the fifteenth day of Shawwal 1391H, in the English and Arabic languages, both texts being equally authoritative.

Signed

Geoffrey Arthur  Sheikh Zayed

Updated: January 04, 2026, 3:29 AM