Dubai has consistently shown its commitment to building a dynamic and progressive business environment, attracting global enterprises and entrepreneurs. As part of its long-term economic Sheikh Hamdan and Minister of Defence has issued Executive Council Resolution No (11) of 2025. This resolution establishes a regulatory framework for free zone establishment seeking to operate beyond their designated zones within Dubai.
A Step Towards Economic Growth
This initiative aligns with the objectives of the Dubai Economic Agenda D33, which aims to double the size of Dubai’s economy over the next decade and elevate the city among the world’s top three economic hubs. By enabling free zone businesses to expand seamlessly into the mainland, the resolution strengthens Dubai’s position as a leading global business destination.
Key Provisions of the Resolution
Under the new regulation, any company or institution licensed by a free zone authority may conduct business outside the free zone within Dubai, provided they obtain the necessary licences or permits from the Dubai Department of Economy and Tourism. This measure eliminates previous restrictions and allows free zone entities greater operational flexibility while ensuring compliance with local economic regulations.
The resolution also outlines the procedures for licensing a branch within the emirate, issuing activity permits, and the conditions governing workforce employment. The DET is authorized to grant permissions for operations outside the free zone through the issuance of specific licences:
- A licence for establishing a branch within Dubai.
- A licence for a branch with its headquarters in the free zone.
- Permits for specific economic activities.
These licences will be valid for one year and subject to renewal, ensuring businesses can maintain compliance while benefiting from the expanded operational scope.
Enhancing Business Competitiveness
Dubai has long been recognized for its pro-business policies, ease of doing business, and globally competitive regulatory environment. The introduction of this resolution reinforces Dubai’s commitment to enhancing its economic competitiveness by:
- Facilitating seamless expansion for free zone businesses into the mainland.
- Providing businesses with regulatory clarity and a structured compliance framework.
- Strengthening Dubai’s appeal as a destination for global investment.
- Encouraging innovation, entrepreneurship, and job creation within the emirate.
By enabling free zone businesses to integrate into the broader Dubai market, the resolution fosters a more interconnected economic landscape, ultimately benefiting investors, entrepreneurs, and consumers alike.
Compliance and Implementation
Establishments operating outside the free zone must adhere to all applicable federal and local regulations, including maintaining separate financial records for their mainland and free zone operations. Additionally, if businesses intend to operate outside Dubai, they must secure the necessary licences from relevant authorities in those jurisdictions.
The DET, in collaboration with free zone licensing authorities, will issue a comprehensive list of permissible economic activities within six months. Businesses already operating outside their designated free zones must comply with the new provisions within one year from the resolution’s effective date, with the possibility of an extension at the discretion of the DET’s Director General.
A Visionary Approach to Economic Sustainability
Dubai’s leadership has consistently demonstrated its commitment to fostering a sustainable and resilient economy. By implementing policies that encourage business expansion, investment, and innovation, the emirate continues to solidify its reputation as a global commercial powerhouse.
One Investments is committed to supporting initiatives that drive Dubai’s growth as a leading global destination. With a strategic focus on high-yield investments and long-term capital appreciation, the firm leverages its expertise to identify and secure the most promising opportunities.
Ready to explore and be a part of Dubai’s thriving investment landscape? Give us a call today.
