Free zone businesses can now expand into mainland According to a new resolution
The Department of Economy and Tourism (DET) will release a list of approved economic activities for businesses in Dubai within six months, following a newly issued resolution.
Free Zone Businesses Can Expand into Mainland Dubai
In a significant policy shift, companies operating in free zones can now establish branches in mainland Dubai after securing a licence from DET. Key details include:
- Annual renewal required for branch licences.
- Businesses can apply for permits to conduct specific activities outside free zones.
- The resolution does not apply to financial institutions licensed under DIFC.
Regulatory Compliance and Key Requirements
Under Executive Council Resolution No. (11) of 2025, issued by Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, free zone businesses expanding into the mainland must meet the following requirements:
- Maintain separate financial records for their mainland operations.
- Follow DET regulations on licensing branches, activity permits, and workforce management.
- DET, in coordination with other authorities, will define which activities are permitted for businesses based on their licence type.
Implementation Timeline and Compliance Inspections
All businesses operating outside free zones must comply with the resolution within one year from its effective date. Key enforcement details:
- Companies will be subject to inspection under federal and local laws.
- The Director General of DET may grant a one-year extension if needed.
