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 of the UAE, issued Executive Council Resolution No. (11) of 2025, regulating the operations of Free Zone establishments in Dubai.
Key Highlights of the New Resolution:
- New Expansion Rights. Free zone businesses can now operate outside their designated free zones within Dubai, provided they obtain the necessary licenses from the Dubai Department of Economy and Tourism (DET).
- Exemptions. The resolution does not apply to financial institutions licensed to operate within the Dubai International Financial Centre (DIFC).
- Separate Financial Records Required. Businesses expanding into the mainland must maintain separate financial records for operations inside and outside their free zone.
- Licensing & Permits.
– DET will issue two types of licenses:
- Branch license within the emirate
- Branch with headquarters in the free zone
– Licenses are valid for one year and can be renewed.
– Permits may be granted for specific economic activities.
• Compliance & Inspections:
– Businesses must adhere to Federal and Local Laws governing their operations.
– Establishments operating under the new rule will be subject to Regulatory Inspections.
• Implementation Timeline:
– The Dubai DET, in coordination with free zone authorities, will publish a list of permissible activities within six months.
– Existing free zone businesses operating outside their zone must comply within one year of the resolution’s effective date, with a possible one-year extension.
• Legal Supremacy:
– This resolution overrides any conflicting resolutions and takes effect upon publication in the Official Gazette.
Positive Business Impact:
This policy change aligns with Dubai’s D33 Economic Agenda, which aims to double the emirate’s economy by 2033 and solidify its position as a top global business hub.
For business owners and investors, this presents a transformative opportunity to:
- Expand operations beyond free zones, accessing a larger customer base in Dubai’s mainland market.
- Reduce operational constraints that previously restricted businesses within designated free zones.
- Enhance competitiveness with streamlined business integration between free zones and mainland Dubai.
- Boost job creation and economic activity, fostering innovation and entrepreneurship.
- Strengthen Dubai’s reputation as a business-friendly, investment-attractive, and globally competitive market.
Conclusion:
Dubai’s Executive Council Resolution No. (11) of 2025 is a landmark reform that redefines the operational scope of free zone businesses, unlocking new growth potential and reinforcing Dubai’s commitment to economic diversification and business excellence. By enabling free zone businesses to seamlessly operate in the mainland market, this initiative strengthens Dubai’s business ecosystem, attracts global investment, and enhances economic integration. This legislation will come into effect will become effective upon its publication in the Official Gazette.
For business owners, this resolution removes previous barriers and creates unparalleled expansion opportunities, positioning Dubai as a global leader in innovation-driven commerce.
How Motei & Associates Can Assist Free Zone and Designated Free Zone Businesses
With Dubai’s new regulatory changes allowing Free Zone (FZ) businesses to expand into mainland Dubai, Motei & Associates is well-positioned to support businesses in navigating legal, regulatory, and compliance requirements.
As an experienced law firm and registered agent, we provide comprehensive assistance to Free Zone and Designated Free Zone (DFZ) businesses in the following areas:
- Business Expansion & Licensing Compliance
- Corporate Structuring & Branch Registration
- Regulatory & Tax Advisory
- Legal Compliance & Risk Management
- Assistance with Permits & Activity Approvals
