In his capacity as Chairman of The Executive Council of Dubai, H.H. Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister, and Minister of Defence, has issued Executive Council Resolution No. (11) of 2025 to regulate the operations of free zone establishments in Dubai.
The resolution allows businesses licensed by free zones to operate outside their designated zones within mainland Dubai, provided they obtain the necessary licences or permits from the Dubai Department of Economy and Tourism (DET).
Enhancing Dubai’s Business Landscape
This landmark resolution supports the Dubai Economic Agenda, D33, which aims to double the size of Dubai’s economy by 2033 and position the emirate among the world's top three economic cities. It facilitates seamless expansion for free zone businesses into the mainland, improving the ease of doing business and attracting global investment.
The move is expected to stimulate economic activity, job creation, and innovation, reinforcing Dubai’s reputation as a global hub for business, investment, and entrepreneurship.
Regulatory Requirements for Free Zone Businesses
- Licensing & Permits: Establishments must obtain a DET-issued licence for either a mainland branch or a branch with headquarters in the free zone. These licences are valid for one year and renewable.
- Compliance: Businesses must adhere to federal and local regulations and maintain separate financial records for operations inside and outside the free zone.
- Expansion Beyond Dubai: To operate outside the emirate, businesses must secure licences from authorities in the intended location.
- Activity Approvals: DET and the licensing authority will issue a list of approved economic activities within six months.
Implementation & Compliance Timeline
- Free zone businesses already operating in mainland Dubai must comply with the new regulations within one year from the resolution’s effective date.
- The Director General of DET may extend this deadline by an additional year if necessary.
- The resolution annuls any conflicting regulations and takes effect upon its publication in the Official Gazette.
This initiative reaffirms Dubai’s commitment to fostering a dynamic and business-friendly environment, making it easier for companies to scale operations while maintaining regulatory integrity.
News Source: Emirates News Agency
