Dubai makes it easier for free zone companies to expand into mainland

Dubai is making it easier for free zone businesses to expand their mainland operations.

A resolution regarding this has been issued by His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, and the UAE's Deputy Prime Minister and Defence Minister.

This allows free zone firms to operate outside their designated areas within Dubai, provided they obtain the necessary permits from the Department of Economy and Tourism (DET).

The initiative, which is aligned with Dubai's ambitious D33 economic agenda, aims to create a more dynamic and efficient business environment, driving job creation, innovation and fostering a competitive economy.

However, the new resolution does not apply to financial institutions licensed to operate within the Dubai International Financial Centre (DIFC).

Hamdan bin Mohammed Issues Resolution to Regulate Free Zone Establishments Operating Outside Designated Zones. pic.twitter.com/QsnIRb8UTO

— Dubai Media Office (@DXBMediaOffice) March 17, 2025

• Under the resolution, establishments must adhere to the applicable federal and local regulations related to their activities and maintain separate financial records for their operations conducted outside the free zone.
• If the establishments wish to operate outside the emirate of Dubai, they must secure the required licences and permits from the relevant authorities in the location where they plan to carry out their activities.
• The DET is authorised to grant an establishment the permission to operate outside the free zone and within Dubai by issuing a licence for establishing a branch within the emirate or issuing a licence for a branch with its headquarters in the free zone.
• These licences are valid for one year and can be renewed. Additionally, permits may be issued for specific activities within the emirate.
• The resolution also outlines the requirements for licensing a branch within the emirate of Dubai or within any other free zone in Dubai. It also details the procedures for issuing activity permits and the conditions for employing the establishment’s workforce.
• The DET, in coordination with the licensing authority, is required to issue a list of economic activities that establishments can conduct in Dubai within six months, depending on whether they hold 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 is subject to inspection according to relevant federal and local laws; in addition to the procedures agreed upon between the DET and the licensing authority.
• All establishments operating outside the free zone and within the Emirate of Dubai when this resolution takes effect must comply with its provisions within one year from its effective date. If needed, the Director General of the DET may extend this period for an additional year.