INTRODUCTION
The Dubai government has recently allowed the companies in free zones to expand in the mainland Dubai. The decision was taken through Executive Council Resolution No 11 of 2025 and is aimed to increase investment and promote growth in the region. This move forms part of the Dubai Economic Agenda (D33), which targets a doubling of the Emirate’s economy by 2033 and aims to position the city among the world’s top three global economic hubs.
The free zones will require yearly renewable licenses from the Department of Economy and Tourism (DET) to expand into the free zone.
KEY PROVISIONS OF THE RESOLUTION
The businesses which previously were constrained to the free zones they registered in are now allowed to expand into the mainland by simply taking a license from the DET. Establishments expanding to the mainland must renew their branch licenses annually, ensuring continued compliance with regulatory requirements. Companies can apply for permits to conduct specific activities outside their free zone jurisdiction while remaining compliant with Dubai’s economic framework.
The resolution however does not apply to financial institutions licensed under the Dubai International Financial Centre (DIFC) maintaining DIFC’s distinct regulatory framework. Companies operating in both free zones and the mainland must maintain separate financial records for their respective operations to ensure financial clarity and regulatory compliance.
Further, the resolution requires any business licensed under this resolution to be subjected to inspection as per Dubai’s federal and local laws. To provide further clarity, DET—working in coordination with the relevant licensing authorities—will issue, within six months, a comprehensive list of economic activities that free zone entities may carry out in mainland Dubai.
All free zone entities expanding into Dubai’s mainland must adhere to the resolution’s provisions within one year of its implementation.
IMPLICATIONS FOR BUSINESSES AND INVESTORS
The resolution will have a positive impact on businesses operating in the free zone which can also take advantage of the markets of the mainland by serving local customers. The resolution provides clear guidelines on licensing, financial transparency, and compliance, so businesses can operate with greater confidence. The structured approach to expansion ensures that companies align with Dubai’s overall economic vision while maintaining transparency and accountability.
CONCLUSION
Dubai’s Executive Council Resolution No. (11) of 2025 is a massive change to the business environment of free zones. This resolution creates a level playing field for free zone companies, allowing them to compete directly with mainland businesses. It enhances Dubai’s attractiveness as a destination for entrepreneurs looking for a business-friendly environment with minimal restrictions.
For more information, you may contact:
Thomas Paoletti
Francesca Romana Valeri
Fauzia Khan
