Dubai just flipped the script on business expansion! Good news for businesses in Dubai.
With the new Executive Council Resolution No. (11) of 2025, free zone companies can now set up shop in mainland Dubai—no more restrictive barriers. Announced by Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister, and Minister of Defence, this game-changing reform is all about making Dubai an even hotter destination for businesses. If you’ve got a free zone company and have been eyeing the mainland market, your time is now!
This move is an ambitious plan to double the emirate’s economy by 2033. By tearing down barriers between free zones and the mainland, Dubai is rolling out the red carpet for global investors, entrepreneurs, and businesses looking for seamless expansion.
The new regulation gives companies licensed by free zone authorities a permit to scale up their operations to the mainland. While earlier they could either operate within the zone or outside the UAE, the new policy has given many businesses a chance to broaden their operations in Dubai, given that they get the necessary permits from the Dubai Department of Economy and Tourism (DET).
However, the financial institutions licensed within the Dubai International Financial Centre are not included in this policy.
So how will it work? Picture this: a thriving business operating in one of Dubai’s free zones, benefiting from tax incentives, streamlined regulations, and an ecosystem built for growth. Until now, if that business wanted to sell directly to mainland customers or set up shop outside the free zone, it had to jump through hoops. But not anymore.
However, with new opportunities come new requirements. Free zone businesses must grab a DET-issued license before taking their operations to the mainland.
Licenses issued under this new resolution will be valid for a year and can be renewed along with additional permits issued for specific activities within the emirate. The DET, working alongside licensing authorities, must provide a comprehensive list of business activities permitted in Dubai within six months.
The resolution also sets clear guidelines for licensing procedures, activity permits, and workforce regulations. Companies operating under this policy will undergo regular inspections to ensure compliance.
Dubai has always been a magnet for ambitious businesses, and now it’s making things even smoother. With this new resolution, free zone companies can finally break out of their bubbles and tap into the thriving mainland market—nothing holding them back. This isn’t just about expansion; it’s about solidifying Dubai as the ultimate destination for entrepreneurs, investors, and innovators looking to make their mark.
But with great freedom comes great responsibility! Businesses still need to play by the rules, keeping separate financial records for their free zone and mainland operations. And if they have their sights set beyond Dubai? They’ll need to get the right approvals before taking the leap. It’s a smart balance—offering flexibility while keeping the business ecosystem transparent and well-regulated.
