Dubai: New Resolution Now Allows Free Zone Businesses To Expand Into Mainland

In a major development, establishments in free zones can now expand and open branches in mainland Dubai after acquiring a licence from Department of Economy and Tourism, according to a new resolution aimed at encouraging investments.

The licences for the new branches will need to be renewed every year. Additionally, establishments can also seek permits for specific activities outside free zone and within the emirate.

The resolution, Executive Council Resolution No. (11) of 2025, regulating the operations of free zone establishments in Dubai, was issued by Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister and Minister of Defence of the UAE.

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The resolution doesn't apply to financial institutions licensed under the Dubai International Financial Centre (DIFC)

Under the resolution, establishments must maintain separate financial records for their operations outside the free zone.

The resolution also outlines the requirements for licensing a branch within 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.

According to the resolution, 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.

All establishments operating outside the free zone and within the Emirate of Dubai must comply with the provisions of the resolution within one year from its effective date. If needed, the Director General of the DET may extend this period for an additional year.

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