Dubai’s New Resolution on Freezone Business Expansion

Yes, Dubai has rolled out a new resolution empowering free zone companies to expand into the mainland.

Dubai has once again taken a bold step to bring a positive impact to its position as a global business hub. In a landmark move, H.H. Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, has issued Executive Council Resolution No. (11) of 2025, allowing businesses operating in free zones to expand their operations into mainland Dubai—pending approvals from the Dubai Department of Economy and Tourism (DET).

What Does This Mean for Businesses?

This resolution is a major milestone for companies operating within Dubai’s free zones. Traditionally confined to their designated areas, these businesses can now extend their footprint into the mainland, unlocking new markets and growth opportunities with greater operational flexibility.

Key Highlights of the New Resolution

Mainland Access for Free Zone Companies:

Companies based in free zones can now conduct business activities in mainland Dubai with the appropriate DET approvals.

Licensing Options – To operate in the mainland, businesses must secure one of the following from DET:

• A branch license  (valid for one year, renewable)
• A branch license with free zone headquarters (valid for one year, renewable), or
• A permit for specific business activities.

Regulatory Compliance – Companies must comply with all applicable federal and local laws. Separate financial records must be maintained for mainland operations.

Inspections & Oversight –  Expanded businesses will be subject to inspections by relevant authorities to ensure compliance.

Phased Implementation – Existing free zone businesses operating in the mainland must regularize their status within one year of the resolution. A one-year extension may be granted upon DET approval.

The Idea For Expansion—Strategic Move!

This initiative aligns with the ambitious Dubai Economic Agenda (D33), which aims to double the size of Dubai’s economy by 2033 & position the city among the world’s top three global business hubs. By opening doors for free zone entities to enter the mainland market, Dubai is fueling innovation, job creation, and foreign investment.

Moreover, this resolution reinforces Dubai’s commitment to being a business-friendly, globally competitive destination, offering companies the freedom to grow while maintaining regulatory integrity.

DET will publish a list of eligible economic activities in coordination with licensing authorities within the next six months, further clarifying the framework for businesses planning to expand.

What Next?

If your business is currently based in a free zone and you’re looking to tap into the broader Dubai market, now is the time to prepare. Review the new licensing requirements, assess your readiness for mainland operations, and stay tuned for DET’s upcoming activity list.

This resolution marks a new era of opportunity for Dubai-based businesses—one where boundaries are being redefined and growth has no limits.

How can Arnifi help you?

We at Arnifi would always recommend the best location to set up your business based on the industrial requirements. If you have already established your company in any freezone, now is the golden opportunity to expand into the mainland. Yes, we guide you through the expansion process and look into the required licensing renewals and regulatory compliance set by DET.

This resolution is a win-win—fueling national economic growth while opening new doors for individual business expansion. What could be better than holding your company in a free zone while enjoying a ‘trial period’ in the mainland market? Follow the link to connect with experts now!