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.
Related Articles
Small Business Relief or QFZP? The Free Zone Election That Costs the Most Money
Compare Small Business Relief and QFZP for UAE Free Zone companies. Understand the AED 3 million threshold,...
Free Zone Company with a Mainland Branch in 2026: Where the CCL, Corporate Tax and VAT Collide
Ask three free zone advisors whether a company can take on mainland work without losing its free zone...
15 Strategic Benefits of Setting Up in Hamriyah Free Zone for 2026
15 strategic advantages explain why Hamriyah Free Zone operates as an industrial base in 2026—covering...
100% Ownership & Tax Exemption: The Hamriyah Advantage for Steel and Heavy Industry
A practical advisory guide to the UAE Hamriyah Free Zone for steel businesses, examining ownership structure,...
DMCC vs. Other Free Zones: Which is Best for Your Business in 2026?
Compare DMCC and other UAE free zones to determine the best fit for your business in 2026. Explore benefits,...
Fujairah Free Zone vs. Sharjah Free Zone: A Business Comparison – The Complete Guide for 2026
Discover the key differences between Fujairah and Sharjah Free Zones in 2026—costs, setup, licenses,...
Top 10 Profitable Business Activities to Start in RAKEZ in 2026: The Ultimate UAE Guide
Explore the most profitable RAKEZ business activities in 2026. Start your UAE venture with top ideas,...
Free Zone LLC vs. Branch Office in RAKEZ (2026 UAE Regulatory & Tax Guide)
Compare Free Zone LLC vs Branch Office in RAKEZ. Explore setup costs, tax, compliance, and which structure...
Industry Focus: Is Ajman Free Zone Right for E-Commerce Startups?
The UAE's e-commerce engine isn’t slowing down. It's growing at a double-digit pace, with projections...
Step-by-Step Guide: Setting Up Your Ajman Free Zone Company Remotely
Sick of paperwork, endless calls, and unclear rules just to launch a business? You're not alone. Starting...
