Dubai’s New Law Allows Free Zone Companies to Operate Anywhere in the Emirate.

Dubai has taken a significant step to boost investment opportunities by introducing Executive Council Resolution No. (11) of 2025, which enables freezone establishments to expand their operations into mainland Dubai.

Key Aspects of the Resolution

The resolution, signed by Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum in his capacity as Crown Prince of Dubai, Deputy Prime Minister and Minister of Defence of the UAE, creates new pathways for business growth across the emirate. Under the new framework, freezone companies can now:

• Establish branches in mainland Dubai with a licence from the Department of Economy and Tourism (DET)

• Apply for permits to conduct specific activities outside their freezone location

• Operate across various parts of the emirate while maintaining their freezone benefits

Implementation Timeline

The annual renewal requirement for these licences ensures ongoing compliance with Dubai's regulatory standards while supporting business continuity.

Important Compliance Requirements

Freezone establishments looking to take advantage of this opportunity must adhere to several key requirements:

• Maintain separate financial records for operations conducted outside the freezone

• Follow all applicable federal and local laws when operating in mainland Dubai

• Submit to inspection protocols as determined by relevant authorities

• Implement the resolution's provisions within one year of its effective date

Financial institutions operating under the Dubai International Financial Centre (DIFC) regulatory framework are excluded from this resolution, with their operations continuing under existing DIFC regulations.

Implementation Timeline

The resolution establishes a structured implementation approach:

• The DET will collaborate with licensing authorities to publish a comprehensive list of permitted economic activities within six months

• This list will specify activities available to different types of establishment structures, including branches with headquarters in freezones

• All affected businesses have a one-year compliance window, with a possible one-year extension available at the discretion of the DET Director General

Significance for Business Community

This regulatory change represents a fundamental shift in Dubai's approach to freezone operations, removing longstanding barriers between freezone and mainland business activities. The resolution bridges the operational gap between these previously separate business environments while preserving the distinct advantages of each, creating a more integrated commercial landscape across Dubai.