Dubai’s New Free Zone Regulation

Dubai has taken a significant step forward in enhancing its business landscape with the issuance of a new resolution that allows free zone companies to operate anywhere in the emirate, provided they obtain the necessary permits. This move is set to simplify business expansion, improve economic integration, and strengthen Dubai’s position as a global business hub.

Key Changes Under the New Regulation

On 17th March 2025, Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, issued Executive Council Resolution No. (11) of 2025. This resolution allows companies licensed by free zones to operate beyond their designated areas and into mainland Dubai, subject to approval from the Dubai Department of Economy and Tourism (DET).

Previously, businesses operating in free zones were largely restricted to their designated areas, with limited access to the mainland market unless they established separate mainland entities. Under the new regulation, companies can now:

• Apply for a permit to operate in mainland Dubai while maintaining their free zone status.

• Establish a branch in mainland Dubai with the appropriate licensing.

• Expand business operations seamlessly without the need to restructure or create an entirely new entity.

The regulation, however, does not apply to financial institutions operating within the Dubai International Financial Centre (DIFC). Businesses must also comply with all relevant federal and local regulations, maintaining separate financial records for free zone and mainland operations.

Enhancing Dubai’s Business Competitiveness

This resolution aligns with the ambitious Dubai Economic Agenda (D33), which aims to double the emirate’s economy to AED 32 trillion ($8.71 trillion) over the next decade. The goal is to position Dubai among the world’s top three global cities, drive economic growth, and make it a leading centre for foreign direct investment (FDI).

With over 1,117 greenfield FDI projects launched in 2024, Dubai has already proven its attractiveness to global investors. The new resolution further strengthens this position by reducing bureaucratic barriers and making it easier for businesses to scale operations in the emirate.

Implications for Free Zone Businesses

For businesses currently operating in free zones, this regulation provides unprecedented flexibility:

• Ease of Market Entry: Companies no longer need to establish an entirely separate mainland entity to access Dubai’s lucrative market.

• Cost Efficiency: By operating under a single entity with the right permits, businesses can reduce administrative overhead and avoid duplicate licensing costs.

• Increased Collaboration: The regulation fosters greater collaboration between free zone and mainland businesses, creating new opportunities for trade and investment.

DET is expected to issue a list of permitted activities within six months, providing further clarity on which businesses can take advantage of this expansion.

How Alpadis Can Help

At Alpadis, we specialise in corporate services, market expansion, and regulatory compliance, ensuring that businesses operate smoothly within their legal frameworks. Whether you are looking to expand your free zone company into mainland UAE or navigate the changing regulatory environment, our experts are here to guide you.

Get in touch with Alpadis today to explore how your business can benefit from Dubai’s latest regulatory shift. Our team provides tailored solutions to help you establish and grow your business with confidence.

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