Establishments must comply with regulations and keep separate financial records for operations outside the free zone
Dubai’s Executive Council has issued Resolution No. (11) of 2025, regulating Dubai free zone businesses to enhance their operations beyond the free zones. In his capacity as the Chairman of The Executive Council of Dubai, His Highness 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, which governs the operations of free zone establishments in Dubai.
The provisions of this resolution are applicable to establishments aiming to operate outside the free zone, with the exception of financial institutions authorized to function within the Dubai International Financial Centre. This initiative is in line with the objectives of the Dubai Economic Agenda, D33, which aims to double the size of Dubai’s economy within the decade leading up to 2033, while also solidifying its status among the top three economic cities globally.
Companies licensed by free zone authorities
According to the resolution, any company or institution licensed by a relevant free zone authority is permitted to operate outside the free zone and within Dubai, provided it secures the necessary licences or permits from the Dubai Department of Economy and Tourism (DET).
This latest resolution signifies a major leap forward in enhancing the business landscape by allowing free zone businesses to seamlessly expand their operations beyond the free zones into mainland Dubai.
Aligning with the D33 Agenda
This initiative supports the city’s ambitious D33 Agenda, which aims to cultivate a vibrant business ecosystem, steered by its visionary leadership, to boost the competitiveness of the city’s flourishing business sector and enhance efficiency for both local and global enterprises. This focus is further reinforced by Dubai’s conducive environment, which includes ongoing efforts to streamline the ease of doing business in Dubai, consistently recognized business-friendly regulations, and now, the capacity for free zone businesses to integrate smoothly into the mainland.
Reflecting Dubai’s dedication to supporting businesses
The new resolution illustrates Dubai’s commitment to supporting businesses and promoting growth. It promotes increased economic activity, job creation, and innovation, positioning the city as a hub for business, investment, and entrepreneurship. This progressive initiative conveys a clear message to the global business community that Dubai is a prime destination for investment, as well as a forward-thinking partner dedicated to nurturing entrepreneurial aspirations and driving sustainable development.
Adherence to federal and local regulations
Under the resolution, establishments are required to comply with applicable federal and local regulations concerning their activities and maintain distinct financial records for their operations conducted outside the free zone, separate from those within it.
Requirements for operating outside the Emirate of Dubai
Moreover, if establishments intend to operate outside the Emirate of Dubai, they must obtain the necessary licences and permits from the relevant authorities in the area where they plan to engage in activities, in accordance with those authorities’ regulations.
DET’s role in granting permissions
According to the resolution, DET is empowered to grant establishments permission to operate outside the free zone and within the Emirate of Dubai by issuing a licence for establishing a branch within the emirate or for a branch with its headquarters in the free zone. These licences are valid for one year and are renewable. Additionally, permits may be granted for specific activities within the emirate.
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Outlining licensing requirements and procedures
The resolution further details the requirements for licensing a branch within the emirate of Dubai or any other free zone in Dubai. It also outlines the procedures for issuing activity permits and the conditions for hiring the establishment’s workforce.
Issuing a list of economic activities
As per the resolution, DET, in collaboration with the licensing authority, is mandated to publish a list of economic activities that establishments can engage in within Dubai within six months, based on whether they possess a branch licence in the emirate, a branch with headquarters in the free zone, or a permit for specific activities.
Any establishment licensed to operate in the emirate under this resolution will be subject to inspection in accordance with relevant federal and local laws, in addition to the procedures agreed upon between the DET and the licensing authority.
Compliance timeframe for establishments
All establishments operating outside the free zone and within the Emirate of Dubai must adhere to the provisions of this resolution within one year from its effective date. If necessary, the Director General of the DET may extend this period for an additional year.
This resolution nullifies any other resolution that may conflict with it and will take effect from the date of its publication in the Official Gazette.
