In a landmark development, businesses operating within Dubai’s free zones are now permitted to expand into mainland Dubai, thanks to a new resolution issued by the Executive Council. This resolution aims to encourage investments and further drive the economic growth of the region.

Resolution No. (11) of 2025: What You Need to Know

Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, the Crown Prince of Dubai, signed the Executive Council Resolution No. (11) of 2025, which allows free zone-based establishments to open branches in mainland Dubai, provided they obtain a license from the Department of Economy and Tourism (DET).

According to the new regulations, businesses will be required to renew their licenses annually, and they can also apply for specific activity permits outside their designated free zones within the emirate.

Financial Record Keeping and Inspection Protocols

A key stipulation under the resolution is that establishments must keep separate financial records for operations conducted outside the free zones. These businesses will also be subject to inspections, which will be conducted in accordance with local and federal laws.

Exemption for DIFC and Licensing Requirements

Notably, the resolution does not apply to financial institutions operating under the Dubai International Financial Centre (DIFC). The licensing requirements will cover both the opening of branches within Dubai and other free zones in the emirate.

Economic Activities: DET to Issue Guidelines

The Department of Economy and Tourism, in collaboration with relevant licensing authorities, is required to publish a list of eligible economic activities that free zone businesses can undertake in mainland Dubai within six months. This will help clarify the scope of operations that establishments can carry out depending on their license type – whether a branch license or an activity-specific permit.

Deadline and Compliance

Businesses must comply with the provisions of this new resolution within one year of its effective date. However, the Director-General of the DET has the authority to extend this deadline for up to an additional year if necessary.

This resolution marks a significant step in fostering business growth and improving investment opportunities within Dubai’s thriving economy.

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