Boldy Going Commercial: The UAE Space Law’s Incentives for Private Investors

4 min 7 sec October 15, 2026 (Edited)

Written by

Andrew Fawcett

Partner

a.fawcett@tamimi.com View LinkedIn Profile

The UAE Space Agency aims to transition 70% of its national space programme funding to the private sector by 2036. Since the enactment of Federal Decree Law No. 46 of 2023 and the issuing of implementing Cabinet Decisions, the UAE’s space law framework now provides greater clarity on licensing, liability, space resources, and incentives. The legal structure has effectively been designed to support a space programme led by the private sector.

Overview of the UAE’s space legal framework

The UAE space sector is governed by Federal Decree Law No. 46 of 2023 Concerning the Regulation of the Space Sector (the Space Law). The Space Law establishes objectives, regulated activities, authorisation mechanisms, liability allocation, risk management obligations, and enforcement powers. Stimulating investment and encouraging private and academic participation are explicit statutory objectives.

The Space Law has broad reach. It applies to space activities undertaken in the UAE, by UAE establishments abroad, to space objects registered by the UAE, and to UAE nationals and UAE-headquartered entities. Consequently, corporate structuring, local presence, and joint venture arrangements are legally relevant.

Article 4 of the Space Law defines regulated activities expansively. These include launch and re-entry, on-orbit operations, satellite communications, navigation and timing, remote sensing, space situational awareness, manned spaceflight, on-orbit logistics, space manufacturing, and the exploration, exploitation, and use of space resources. It also captures related activities such as high altitude operations and space data management.

The Space Law is implemented through Cabinet decisions issued in 2023. Cabinet Decision No. 18 of 2023 regulates authorisations. Cabinet Decision No. 19 of 2023 addresses space resources. Cabinet Decision No. 20 of 2023 governs compensation for third-party damage. Cabinet Decision No. 21 of 2023 establishes administrative penalties.

Satellite spectrum and communications licensing remains under the Telecommunications and Digital Government Regulatory Authority (TDRA). The space law requires a no-objection certificate from the UAE Space Agency as a prerequisite before communications licences are issued.

Private-sector support mechanisms

 The authorisation regime under the Space Law is mandatory but adaptable. Cabinet Decision No. 18 of 2023 provides several instruments calibrated to risk and commercial maturity. These include licences for commercial activities, consents for non-commercial governmental or academic projects, permits for supportive functions, trial licences for non-revenue testing, and no-objection certificates required for approvals from other authorities.

The UAE Space Agency has discretion to approve or refuse authorisations in the public interest. It may also establish an interim committee to exempt specific activities or operators from permit requirements or conditions. This mechanism can reduce regulatory friction for pilot projects and early stage demonstrations.

Liability allocation is a central feature. Authorised operators are liable for third-party damage caused by their space objects or activities. Liability caps may be set by the UAE Cabinet or its delegate based on risk factors such as mission type, vehicle profile, and trajectory. Unlimited liability applies where activities are undertaken without authorisation or in breach of permit conditions.

Cabinet Decision No. 20 of 2023 implements a compensation guarantee regime. The UAE Space Agency determines an upfront compensation amount reflecting mission risk and potential loss. That decision sets response timelines and cooperation obligations, with limited exemptions available. Operators must also maintain insurance or an approved financial guarantee for third-party liability throughout the activity’s lifecycle.

Space resource commercialisation is expressly permitted. Cabinet Decision No. 19 of 2023 allows authorised operators to explore, exploit, and use space resources. It also recognises their ownership rights over extracted resources under UAE law, subject to environmental protection and debris mitigation requirements. Intellectual property arising from space activities is governed by existing UAE industrial property legislation.

Operational predictability is supported by compliance obligations. Operators must maintain risk assessments, risk management plans and emergency response arrangements, and submit periodic reports. Transitional provisions allow existing operators time to regularise approvals, supporting continuity while enforcing compliance.

At the policy level, the UAE provides direct incentives. The AED 3 billion National Space Fund supports Emirati and international companies. Sirb, a synthetic aperture radar constellation, is the first flagship project. The UAE Space Agency also offers Space Economic Zone initiatives and a Space Catalyst Package, including accelerated permitting, access to laboratories and experts, funding facilitation, co-working facilities, and promotional support.

Barriers relative to a private delivery target

Transparency around third-party compensation limits would further support investment. While Cabinet Decision No. 20 establishes the compensation guarantee, it does not publish typical ranges or methodologies by mission class. Clearer benchmarks would help operators plan financing, insurance, and pricing. Published criteria for exemptions would benefit early-stage technology testing.

Inter-agency coordination is increasingly important. The no-objection certificate requirement is conceptually sound, but predictable coordination with the TDRA on spectrum allocation, gateways, and earth stations is necessary to support communications growth.

Other regulatory regimes also affect space activities. Import, export, and dual-use controls apply to space hardware and software. Further clarity and stability will be important to support supply chain localisation and partnerships with foreign manufacturers.

Downstream data governance remains underdeveloped. While space data management is regulated and requires coordination with the Federal Centre for Geographic Information, comprehensive public rules on remote-sensing data licensing, access, localisation, and commercial reuse would stimulate analytics businesses.