Hamdan Bin Mohammed Issues Resolution To Regulate Free Zone Establishments Operating Outside Designated Zones In Dubai

His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister and Minister of Defence, in his role as Chairman of The Executive Council of Dubai, has issued a new resolution. This regulation, Executive Council Resolution No. (11) of 2025, governs free zone businesses in Dubai. It applies to those wishing to operate outside their designated zones, excluding financial institutions within the Dubai International Financial Centre.

The resolution aligns with the Dubai Economic Agenda, D33, which aims to double the city's economy by 2033 and secure its place among the top three global economic cities. It allows companies licensed by free zone authorities to function outside these zones in Dubai, provided they obtain necessary permits from the Dubai Department of Economy and Tourism (DET).

This initiative is a major step in improving business operations by allowing Free Zone enterprises to expand into mainland Dubai. The move supports the D33 Agenda's goal of creating a dynamic business environment under visionary leadership. It aims to boost competitiveness and efficiency for both local and international businesses.

Dubai's supportive environment includes efforts to enhance ease of doing business and recognised business-friendly regulations. Now, Free Zone businesses can integrate into the mainland seamlessly. This reflects Dubai’s commitment to fostering growth and supporting businesses.

Under this resolution, establishments must follow federal and local regulations relevant to their activities. They need to maintain separate financial records for operations outside the free zone from those within it. If they plan to operate outside Dubai, they must obtain licences from relevant authorities where they intend to conduct activities.

The DET is authorised to permit establishments to operate outside free zones within Dubai by issuing licences for branches either within the emirate or with headquarters in a free zone. These licences are valid for one year and can be renewed.

The resolution specifies procedures for licensing branches within Dubai or other free zones in the city. It also outlines how activity permits are issued and conditions for employing workforce members of these establishments.

DET will issue a list of economic activities that establishments can conduct within six months based on their licence type—whether it's a branch licence in the emirate or a branch with headquarters in a free zone.

Establishments licensed under this resolution are subject to inspections according to federal and local laws. They must also adhere to procedures agreed upon between DET and licensing authorities.

All establishments operating outside free zones when this resolution takes effect must comply with its provisions within one year from its effective date. If necessary, DET’s Director General may extend this period by an additional year.

This resolution nullifies any conflicting resolutions and becomes effective upon publication in the Official Gazette.

With inputs from WAM