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Dubai introduces new rules allowing free zone companies to expand locally
Businesses operating under this resolution will be subject to inspections in accordance with relevant federal and local laws.
In a major shift, businesses operating in Dubai’s free zones can now expand into the mainland by opening branches, provided they secure a license from the Department of Economy and Tourism. This new resolution aims to attract more investment and drive economic growth.
The licenses for these branches require annual renewal, and businesses can also apply for permits to conduct specific activities both within the emirate and beyond the free zones.
Executive Council Resolution No. (11) of 2025, which regulates the operations of free zone businesses in Dubai, was issued by Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister, and Minister of Defence of the UAE.
The resolution does not apply to financial institutions licensed under the Dubai International Financial Centre (DIFC).
Under the new regulations, businesses must maintain separate financial records for operations outside the free zone. The regulations also outline the licensing requirements for branches in Dubai or other free zones within the emirate, specifying procedures for obtaining activity permits and conditions for hiring staff.
The resolution requires the Department of Economy and Tourism (DET), in coordination with the licensing authority, to publish a list of permitted economic activities within Dubai. This list, expected within six months, will vary based on whether a business holds a branch license in the emirate, a branch with a headquarters in the free zone, or a permit for specific activities.
Businesses operating under this resolution will be subject to inspections in accordance with relevant federal and local laws.
Businesses operating under this resolution will be subject to inspections in line with applicable federal and local laws. Additionally, all businesses conducting activities outside the free zone but within Dubai must comply with the resolution within one year of its enactment. If needed, the Director General of DET may extend this deadline by an additional year.
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