Dubai has introduced a major change for freezone businesses. The new 2025 resolution allows freezone companies to expand operations into mainland Dubai. Previously, these businesses were restricted to their designated zones. Now, they can access new markets while maintaining their freezone base.
What the Resolution Means
Issued as Executive Council Resolution No. (11) of 2025 by Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, the rule supports Dubai’s D33 Economic Agenda. It encourages investment and strengthens the local economy.
Freezone companies can now:
- Establish branches in mainland Dubai
- Apply for activity-specific permits to operate outside their zones
However, the resolution does not apply to:
- Financial institutions under DIFC
- Companies already operating in the mainland
- Businesses outside Dubai or the UAE
Licences and Permits
To operate in the mainland, freezone companies must obtain licences from the Dubai Department of Economy and Tourism (DET). Key options include:
- Mainland Branch Licence: Opens a branch in Dubai mainland
- Headquarters Branch Licence: Maintains headquarters in freezone with a mainland branch
- Activity-Specific Permit: Allows specific business activities without a full branch
Licences are valid for one year and must be renewed annually.
Compliance Requirements
Freezone businesses must meet strict regulations in mainland Dubai:
- Maintain separate financial records for mainland operations
- Comply with federal and local laws, including labour and tax rules
- Undergo regular inspections by DET and other authorities
- Meet deadlines within one year, with a possible one-year extension
Benefits of Expanding into Mainland
This resolution opens several advantages for freezone businesses:
- Easier Expansion: Companies can now reach a wider market outside freezones
- More Business Opportunities: Apply for activity-specific permits to broaden operations
- Simplified Licensing: Only one licence from DET is needed, renewed annually
- Boost Foreign Investment: International investors find Dubai more attractive
- Support D33 Agenda: Expansion aligns with Dubai’s goal to double its economy by 2033
How to Expand
Steps for freezone companies to move into mainland Dubai:
- Check Business Eligibility: Confirm your activity is allowed under the new resolution. DET will release a list of approved activities.
- Apply for Mainland Licence: Submit an application to DET for a branch licence or activity permit.
- Secure Approvals: Some sectors need additional approval from regulatory bodies.
- Maintain Separate Records: Keep independent financial statements for mainland operations.
- Lease Office Space (if required): Some activities require registered commercial premises.
- Register for VAT (if applicable): Companies meeting the threshold must register with the Federal Tax Authority.
- Apply for Employee Visas: Comply with UAE labour laws and obtain permits through MOHRE.
- Undergo Compliance Inspections: DET will inspect operations regularly.
- Renew Licence Annually: Licence validity is one year; renewal is mandatory.
Many entrepreneurs are now seeing this as the ideal time for company formation UAE, as it allows them to combine freezone benefits with mainland access.
Key Takeaways
Dubai’s new resolution makes it easier for freezone businesses to expand and grow. Companies can access a larger market, maintain regulatory compliance, and benefit from a simplified licensing system. This step strengthens Dubai’s position as a global business hub.
For investors and entrepreneurs planning company formation UAE, this expansion opportunity is a game-changer. It offers access to new clients, regulatory clarity, and potential for long-term growth.
Looking to expand your freezone business into mainland Dubai? Contact AR Associates today for expert guidance on licences, compliance, and company formation in UAE.
