Dubai Issues New Resolution To Regulate Free Zone Establishments

Dubai Crown Prince Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum issued a new resolution (No. 11 of 2025) to regulate the operations of free zone establishments in the emirate.

This resolution applies to businesses that want to operate outside their designated free zones, except for financial institutions licensed in the Dubai International Financial Centre. It supports the Dubai Economic Agenda (D33), which aims to double Dubai's economy by 2033 and strengthen its position as one of the world's top three economic cities.

The resolution allows free zone businesses to operate in mainland Dubai if they obtain the required licenses from the Dubai Department of Economy and Tourism (DET), WAM reported.

This move makes it easier for free zone companies to expand beyond their designated areas, strengthening Dubai's business environment. Dubai's business-friendly regulations and ongoing efforts to improve the ease of doing business further support this initiative.

The resolution reinforces Dubai's commitment to business growth by promoting economic activity, job creation, and innovation, making the city a key hub for investment and entrepreneurship. It highlights Dubai's role as a forward-thinking partner focused on sustainable development.

Businesses operating outside free zones must follow all federal and local regulations and maintain separate financial records for their mainland operations. If they wish to expand outside Dubai, they must obtain the necessary licenses from the relevant authorities in those locations.

The resolution grants the DET the authority to issue licenses for free zone businesses to operate in mainland Dubai. Companies can establish a branch in the emirate or a branch with headquarters in the free zone.

These licenses are valid for one year and can be renewed. DET may also issue permits for specific activities. The resolution sets guidelines for licensing branches, issuing permits, and managing workforce regulations.

DET, in coordination with licensing authorities, will release a list of permitted economic activities within six months. Businesses operating under this resolution will be subject to inspections per federal and local laws.

Businesses already operating outside free zones in Dubai must comply with the new resolution within a year. If necessary, the DET's Director General may extend this deadline by another year. The resolution overrides any conflicting rules and takes effect once published in the Official Gazette.