Following a new resolution passed by Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister and Minister of Defence of the UAE on March 17th 2025, free zone businesses can now expand their operations into the Dubai Mainland.
Under the Executive Council Resolution No. (11) of 2025, any Dubai business recognized by a free zone authority can get a license to operate outside their designated zones from the Dubai Department of Economy and Tourism (DET). However, the resolution does not apply to institutions who are licensed by the DIFC Free Zone (Dubai International Financial Center).
What Businesses Need to Know About the Resolution
The DET-issued license will be valid for one year, and can be renewed. There is also an option to get a license for specific activities within Dubai.
The license can be issued for companies establishing a branch in Dubai or for branches whose headquarters are located in a free zone.
The resolution outlines specific requirements for branch licensing, hiring employees, and procedures for issuing activity permits.
Businesses will be required to maintain separate financial records of their free zone and mainland operations. They are also obligated to stay compliant with local and federal regulations.
The DET is required to put out a list of economic activities that establishments can conduct in the emirate within six months. The list will include activities for companies that hold a branch licence in the emirate, a branch with headquarters in the free zone, or a permit for specific activities.
To operate outside Dubai, businesses must get permission from the relevant authorities.
Every Dubai business who wishes to operate outside the free zone must comply with the provisions of the resolution within 12 months, or ask the DET for a one-year extension, which will be provided at their discretion.
Every company licensed to operate under the resolution will be subject to inspections.
The incentive is predicted to increase operational flexibility for companies, allowing them to grow their business, and expand into new territories without completely relocating their offices. This also makes freezone company formation in Dubai an enticing option for entrepreneurs.
It also comes at a good time, as the emirate recently announced a new free zone dedicated to entertainment and sports. Soon to be located in Dubai World Trade Center’s free zone, the International Sports and Entertainment Free Zone Cluster (ISEZA) will provide a platform to established and emerging sports in both regional and international circles.
