The production and exportation of cannabis products from the Isle of Man is to be legalised after politicians approved a change in the law.
Tynwald unanimously backed the new rules, which would permit a licensed person to produce cannabis-based products, including for medical use.
But using the drug on the island will remain illegal under the new rules.
MHK Lawrie Hooper said the new industry could be a "key contributor to the Isle of Man’s post-Covid economic recovery".
Under the update to the Misuse of Drugs Act 1976, licences will be issued by the island’s Gambling Supervision Commission and will cost between £250 and £45,000, depending on the type.
The government has estimated that the regulated production of cannabis could bring up to £3m per year into the Manx exchequer and generate about 250 jobs.
Alex Allinson MHK said the new rules had “been a long time coming” and they should “lead to further progression in terms of drugs policy”.
The industry should ultimately supply the Isle of Man with medicinal cannabis, he added.
A public consultation in 2019 showed that 95% of respondents were in favour of cultivating the plant for medicinal purposes.