Dubai Introduces new resolution to regulate free zone operations
The DET has been granted the authority to issue licenses allowing free zone establishments to operate in mainland Dubai or to open branches within the emirate
Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Deputy Prime Minister and Minister of Defence of the UAE, has issued Executive Council Resolution No (11) of 2025, aimed at regulating the operations of free zone businesses in Dubai.
The resolution, which applies to businesses operating outside free zones, marks a key step in further aligning with the goals of the Dubai Economic Agenda, D3.
The new regulation allows companies licensed by free zone authorities to expand their operations into mainland Dubai, provided they obtain the necessary permits from the Dubai Department of Economy and Tourism (DET).
However, the provisions exclude financial institutions licensed within the Dubai International Financial Centre.
This initiative supports Dubai’s ambition to create a more dynamic business ecosystem by facilitating the expansion of free zone businesses beyond their designated areas.
It also seeks to enhance the competitiveness of Dubai’s business environment, ensuring it remains an attractive and accessible destination for both local and international investors.
Dubai is recognised for its pro-business policies
The city has long been recognised for its business-friendly regulations, and now, with the ability for free zone businesses to seamlessly integrate into the mainland, the resolution strengthens Dubai’s position as a hub for investment, entrepreneurship, and sustainable development.
In addition to improving operational flexibility for businesses, the resolution also emphasizes compliance with both federal and local regulations, requiring companies to maintain separate financial records for their free zone and mainland operations.
Companies wishing to operate outside Dubai will need to secure the necessary licenses from the relevant authorities in those areas.
DET to issue licences to free zone establishments to open branches within the emirate
The DET has been granted the authority to issue licenses allowing free zone establishments to operate in mainland Dubai or to open branches within the emirate. These licenses, which are valid for one year, can be renewed. Specific activity permits will also be available for businesses conducting particular operations within Dubai.
To further support businesses, the DET, in collaboration with other licensing authorities, is tasked with providing a list of eligible economic activities within six months of the resolution’s implementation.
All establishments wishing to operate outside the free zone in Dubai must comply with the resolution’s provisions within one year of its effective date, with the possibility of a one-year extension at the discretion of the Director General of the DET.
This resolution replaces any conflicting previous regulations and is now in effect from its publication in the Official Gazette.
The new resolution is expected to foster increased economic activity, job creation, and innovation, while reinforcing Dubai’s reputation as a progressive and forward-thinking business environment on the global stage.
