Dubai free zone businesses can now expand into mainland
New resolution to regulate free zone establishments operating outside designated zones
Dubai has introduced a game-changing resolution allowing free zone businesses to expand their operations into mainland Dubai, unlocking new opportunities for growth and investment.
In his capacity as Chairman of The Executive Council of Dubai, Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister and Minister of Defence of the UAE, issued a new regulation that permits free zone establishments – except financial institutions licensed under the Dubai International Financial Centre (DIFC) – to conduct business outside their designated zones, provided they obtain the necessary approvals from the Dubai Department of Economy and Tourism (DET).
This landmark decision aligns with the Dubai Economic Agenda (D33), which aims to double the city’s economy by 2033 and solidify Dubai’s standing among the world’s top three economic hubs.
What this means for businesses
Free zone companies can now access Dubai’s mainland market, significantly widening their customer base.
Businesses can apply for a DET-issued license to operate a branch in mainland Dubai or obtain a permit for specific activities. Licenses will be valid for one year and renewable.
The resolution fosters innovation, job creation, and economic activity by allowing businesses to operate seamlessly across Dubai’s economic landscape.
Companies must maintain separate financial records for mainland and free zone operations and comply with all federal and local regulations.
Implementation, compliance
The DET, in coordination with licensing authorities, will publish a list of permitted economic activities within six months. Existing businesses operating outside free zones must comply with the new regulations within a year, with an option for a one-year extension if approved by DET.
This move reinforces Dubai’s commitment to business-friendly policies, making it easier for companies to grow, invest, and thrive. The resolution is now in effect following its publication in the Official Gazette.
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