Dubai Introduces Landmark Rule Allowing Free Zone Businesses to Operate in Mainland
Dubai, UAE – March 2025 – In a strategic move to enhance Dubai’s economic integration and business flexibility, His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, has issued Executive Council Resolution No. (11) of 2025. This new regulation permits companies licensed in Dubai’s free zones to operate in the mainland, provided they obtain the necessary approvals from the Dubai Department of Economy and Tourism (DET).
Key Highlights of the Resolution:
•Mainland Access for Free Zone Companies: Businesses licensed in Dubai’s free zones can now establish branches or conduct activities within the mainland upon securing the appropriate licenses from the DET.
•Regulatory Compliance: Companies must adhere to federal and local regulations and maintain separate financial records for their free zone and mainland operations.
•Financial Sector Exclusion: Financial institutions operating under the Dubai International Financial Centre (DIFC) remain exempt from this regulation.
•Licensing Framework: DET is authorized to issue one-year renewable licenses for free zone businesses seeking to operate in the mainland.
•Implementation Timeline: Companies have one year to comply with the resolution’s provisions, with an optional one-year extension subject to DET approval.
Strategic Impact:
This decision aligns with Dubai’s Economic Agenda D33, which aims to double the size of the economy in the next decade. The integration of free zone businesses into the mainland is expected to attract more investment, foster business expansion, and create a more dynamic and competitive marketplace in Dubai.
By implementing this progressive policy, Dubai continues to strengthen its position as a global business hub, providing enhanced opportunities for companies looking to scale their operations within the region.
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