Dubai has introduced a major policy shift that allows free zone businesses to expand into the mainland, creating new opportunities for investment and growth.
Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister, and Minister of Defence of the UAE, issued a regulation permitting free zone establishments—excluding financial institutions licensed under the Dubai International Financial Centre (DIFC)—to operate outside their designated zones. However, they must first secure approvals from the Dubai Department of Economy and Tourism (DET).
This decision aligns with the Dubai Economic Agenda (D33), which aims to double the city’s economy by 2033 and position Dubai among the world’s top three economic hubs.
What This Means for Businesses
Free zone companies can now tap into Dubai’s mainland market, significantly expanding their customer base. Businesses have two options:
- Apply for a DET-issued license to open a branch in the mainland.
- Obtain a permit for specific economic activities.
Each license will be valid for one year and can be renewed. This flexibility allows companies to operate across Dubai’s economic landscape while fostering innovation, job creation, and economic growth.
Additionally, companies must maintain separate financial records for their free zone and mainland operations while ensuring compliance with federal and local regulations.
Implementation and Compliance
Within six months, the DET, in coordination with licensing authorities, will publish a list of permitted economic activities. Businesses currently operating outside free zones must comply with the new regulations within one year. If needed, they may apply for a one-year extension, subject to DET approval.
This resolution reaffirms Dubai’s commitment to business-friendly policies, making it easier for companies to expand, invest, and thrive. The regulation is now in effect following its publication in the Official Gazette.
