Dubai has introduced a new resolution aimed at simplifying the expansion of free zone businesses within the emirate. The resolution, issued by Sheikh Hamdan bin Mohammed, Crown Prince of Dubai, Deputy Prime Minister, and Minister of Defence, in his role as Chairman of the Executive Council of Dubai, allows free zone-licensed companies to operate outside their designated zones with the necessary permits from the Dubai Department of Economy and Tourism (DET).

However, this regulation does not apply to financial institutions operating within the Dubai International Financial Centre (DIFC).

Key Provisions of the Resolution

-Free zone businesses can expand into mainland Dubai by obtaining the required licences and permits from the DET.
– Companies must comply with federal and local laws and maintain separate financial records for operations conducted inside and outside the free zone.
– Businesses seeking to operate beyond Dubai must secure permits from the relevant authorities.

According to the Dubai Media Office, the resolution marks a major step in strengthening Dubai’s business environment by allowing free zone companies to expand seamlessly into mainland Dubai.

Under the new rules, the DET is authorized to:

– Issue licences for companies to establish mainland branches.
– Grant activity-specific permits for operations within the emirate.
– Outline the requirements and procedures for obtaining licences and permits, including workforce regulations.

Licences issued under this resolution will be valid for one year and can be renewed. The DET, in collaboration with licensing authorities, is expected to publish a list of approved economic activities within six months. Additionally, businesses operating under this regulation will be subject to inspection.

Aligning with Dubai’s D33 Economic Agenda

The resolution aligns with Dubai’s ambitious D33 agenda, which aims to double the city’s economy to AED 32 trillion ($8.71 trillion) over the next decade. The plan seeks to position Dubai among the top three global cities, support the growth of 30 unicorn companies (start-ups valued over $1 billion), and solidify its status as a global business and digital economy hub.

Dubai’s economy grew by 3.1% in the first nine months of 2024, reaching AED 339.4 billion, driven by wholesale and retail trade, transport and storage, and financial services. The emirate also maintained its position as the world’s top destination for greenfield foreign direct investment (FDI) projects for the fourth consecutive year, attracting over AED 52.3 billion in FDI across 1,117 projects in 2024—a 33.2% increase from the previous year.

Industry experts view the new resolution as a significant move toward making Dubai’s business environment more flexible and investment-friendly.

“The resolution simplifies the process for free zone companies to expand into the mainland, eliminating many previous restrictions,” said Paul Bryson, Managing Director of Virtuzone. “The next step would be enabling corporate migration between different jurisdictions in the UAE, further enhancing business flexibility and economic growth.”

By streamlining business operations and fostering a more integrated economic landscape, Dubai continues to reinforce its position as a leading global business hub.

A Step Towards Your Business Success with Invest Biz

At Invest Biz, we’re committed to helping you navigate the new opportunities presented by Dubai’s updated regulations. This move opens doors for free zone companies to expand seamlessly within Dubai, boosting growth and market reach. With our expertise in business formation, licensing, and compliance, we ensure you stay ahead of the curve and make the most of this evolving landscape. Partner with us for a smooth and successful business setup in the UAE and KSA, and take your business to new heights. Let’s make your entrepreneurial journey a success today!