Hamdan bin Mohammed Issues Resolution to Regulate Free Zone Establishments Operating Outside Designated Zones

In his capacity as the Chairman of The Executive Council of Dubai, His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister and Minister of Defence of the UAE, issued Executive Council Resolution No. (11) of 2025, regulating the operations of free zone establishments in Dubai.

Provisions of this resolution apply to establishments seeking to operate outside the free zone, with the exception of financial institutions licensed to operate within the Dubai International Financial Centre, and align with the goals of the Dubai Economic Agenda, D33, to double the size of Dubai’s economy in the decade up to 2033, and consolidate its position among the world’s top three economic cities.

According to the resolution, any company or institution licensed by a free zone relevant authority may operate outside the free zone and within Dubai, as long as it obtains the necessary licenses or permits from the Dubai Department of Economy and Tourism (DET).

This latest resolution marks a significant advancement in enhancing the business landscape, by enabling Free Zone businesses to effortlessly expand their operations beyond the free zones into mainland Dubai.

This initiative aligns with the city's ambitious D33 Agenda to create a dynamic business ecosystem, guided by its visionary leadership, to further elevate the competitiveness of the city’s thriving business sector and improve efficiency for local and global businesses. This focus is further supported by Dubai’s enabling environment, including its continuous efforts to improve the ease of doing business in Dubai, consistently recognised business-friendly regulations, and now, the ability for Free Zone businesses to seamlessly integrate into the mainland.

The new resolution also reflects Dubai’s dedication to supporting businesses and fostering growth. It encourages increased economic activity, job creation, and innovation, positioning the city as a hub for business, investment and entrepreneurship. This progressive initiative sends a clear message to the global business community that Dubai is a destination for investment, as well as a forward-thinking partner committed to nurturing entrepreneurial ambitions and driving sustainable development.

Under the resolution, establishments must adhere to the applicable federal and local regulations related to their activities and maintain separate financial records for their operations conducted outside the free zone, separate from those within the free zone.

Additionally, if the establishments wish to operate outside the Emirate of Dubai, they must secure the required licenses and permits from the relevant authorities in the location where they plan to carry out their activities, in compliance with the applicable regulations of those authorities.

According to the resolution, DET is authorized to grant an establishment the permission to operate outside the free zone and within the Emirate of Dubai by issuing a license for establishing a branch within the emirate or issuing a license for a branch with its headquarters in the free zone. These licenses are valid for one year and can be renewed. Additionally, permits may be issued for specific activities within the emirate.

The resolution also outlines the requirements for licensing a branch within the Emirate of 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 license 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; in addition to the procedures agreed upon between the DET and the licensing authority.

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

This resolution annuls any other resolution that conflicts with it, and will be effective from the date of its publication in the Official Gazette.