Dubai has further enhanced its business-friendly ecosystem with the release of Executive Council Resolution No. (11) of 2025 by Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai. The resolution permits free zone establishments to expand outside their designated zones, enhancing economic growth and business flexibility.
What Does the New Resolution Imply?
The resolution allows any company or institution licensed by a free zone authority to expand its operations into mainland Dubai, provided they obtain the necessary licenses or permits from the Dubai Department of Economy and Tourism (DET). Financial institutions operating within the Dubai International Financial Centre (DIFC) are an exception to this rule.
Boosting Dubai’s Economic Growth
This strategic move aligns with Dubai’s Economic Agenda (D33), which aims to double the city’s economy by 2033 and strengthen its position as one of the world’s top three economic hubs. By facilitating seamless integration of free zone businesses into the mainland, Dubai enhances its competitiveness and fosters innovation, job creation, and investment opportunities.
Key Requirements for Businesses
Businesses looking to expand under this resolution must:
- Obey federal and local legislation governing their activities.
- Maintain separate finances of mainland and free zone operations.
- Acquire additional permits if operating outside Dubai.
Approvals will be granted by the Dubai Department of Economy and Tourism (DET) in two types of licenses:
- Branch License in Dubai Mainland
- Branch License with Headquarters in the Free Zone
These licenses are valid for one year, renewable as required. DET will also publish a list of approved economic activities within six months of the adoption of the resolution.
Compliance and Transition
All companies within the free zones which have been operating outside their zones before the entry into force of the resolution shall comply with the new regulation within one year. Where necessary, the Director General of DET may accord an extension of another year.
This decision fortifies Dubai as a world-class business center and facilitates entrepreneurs’ ability to expand, innovate, and succeed within a vibrant economy.
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