Dubai has taken a significant step towards enhancing its economic landscape by allowing free zone businesses to expand into mainland Dubai. A new resolution issued by Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, permits free zone establishments—except financial institutions licensed under the Dubai International Financial Centre (DIFC)—to operate outside their designated zones with the necessary approvals from the Dubai Department of Economy and Tourism (DET).
This development aligns with the Dubai Economic Agenda (D33), which aims to double the emirate’s economy by 2033 and strengthen its position as a leading global economic hub. The resolution is expected to unlock new growth opportunities, foster innovation, and attract further investment.
Key Benefits for Businesses
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Market Expansion:
Free zone companies can now establish a presence in the mainland, gaining access to a wider customer base and new revenue streams.
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Flexible Licensing Options:
Businesses can apply for a DET-issued license to operate a branch in mainland Dubai or obtain a permit for specific activities.
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Regulatory Compliance:
Companies must maintain separate financial records for their free zone and mainland operations while adhering to local and federal laws.
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Annual License Renewal:
Licenses granted under this resolution will be valid for one year and renewable.
Implementation and Compliance Requirements
The DET, in coordination with relevant licensing authorities, will publish a list of permitted economic activities within six months. Businesses currently operating outside free zones must align with the new regulations within a year, with an option for a one-year extension upon approval from DET.
The resolution reinforces Dubai’s commitment to fostering a pro-business environment, enabling companies to scale their operations with greater ease. With this policy now in effect following its publication in the Official Gazette, businesses can look forward to enhanced operational flexibility and new investment prospects.
For more detailed information, visits the Dubai Government Media Office.
