In a move that promises to reshape the business landscape, His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council, has issued Executive Council Resolution No. (11) of 2025. This resolution, which regulates the operations of free zone establishments in Dubai, paves the way for companies to expand their reach beyond the confines of free zones and into mainland Dubai, with certain exceptions.
The provisions of the resolution apply to businesses seeking to operate outside their designated free zones, excluding financial institutions licensed to operate within the Dubai International Financial Centre (DIFC). This development aligns with the goals of the Dubai Economic Agenda, D33, which aims to double the size of Dubai’s economy by 2033 and solidify its position as one of the world’s top three economic hubs.
Under the new guidelines, businesses licensed by free zone authorities are now permitted to operate within Dubai, provided they secure the necessary permits from the Dubai Department of Economy and Tourism (DET). This significant change simplifies the process for businesses seeking to extend their operations beyond the free zone, fostering greater integration with Dubai’s thriving mainland economy.
The resolution supports Dubai’s ambitious D33 Agenda by creating a more dynamic business environment. It strengthens the city’s reputation as a competitive and business-friendly destination, offering a seamless environment for both local and international companies. With this initiative, Dubai further establishes itself as a global business hub, committed to supporting entrepreneurs and facilitating sustainable growth.
The resolution also reinforces Dubai’s commitment to fostering innovation, economic activity, and job creation. It offers companies the opportunity to tap into new markets and enhance their visibility in both local and international arenas, reported WAM. Furthermore, it emphasizes Dubai’s continuous efforts to improve the ease of doing business, supported by consistently favorable regulations and an increasingly integrated business ecosystem.
To ensure compliance, establishments operating outside free zones must adhere to all applicable federal and local regulations and maintain separate financial records for their operations inside and outside the free zones. Additionally, businesses wishing to operate beyond the Emirate of Dubai will need to secure permits from the relevant authorities in other regions, in line with local regulations.
DET will be responsible for granting licenses to free zone establishments that wish to operate in Dubai, either through the establishment of a branch within the emirate or by creating a branch with its headquarters in the free zone. These licenses will be valid for one year and can be renewed. Specific activity permits can also be issued for operations within the emirate.
In the coming months, DET, in collaboration with the licensing authority, will publish a list of approved economic activities that free zone businesses can conduct within Dubai. This list will be available within six months of the resolution’s enactment.
Establishments operating in Dubai under this resolution will be subject to inspections in accordance with federal and local laws. They must comply with the resolution’s provisions within one year of its implementation. If necessary, DET’s Director General may extend this period by another year.
With this new resolution, Dubai continues to advance as a global business destination, enhancing its attractiveness to investors, entrepreneurs, and companies looking to thrive in a modern, forward-thinking economy. The resolution will take effect immediately upon publication in the Official Gazette, and any previous conflicting resolutions will be annulled.
