Issued by Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister, and Minister of Defence of the UAE, the resolution is a game-changer for the emirate’s business landscape. Until now, free zone companies in Dubai operated within designated areas with unique benefits like tax exemptions and full foreign ownership. However, expanding into mainland Dubai required navigating a separate set of regulations—often a complex process. The new resolution simplifies this by allowing free zone businesses to open branches on the mainland after obtaining a licence from the Department of Economy and Tourism (DET). This licence must be renewed annually, ensuring compliance while offering flexibility.

Beyond opening branches, businesses can also apply for permits to conduct specific activities outside free zones but within the emirate. This added option makes it easier for companies to test new markets or offer services across Dubai without fully relocating.

Freezone Businesses Eligibility to Access Mainland

The resolution applies to most free zone businesses in Dubai, with one key exception: financial institutions licensed under the Dubai International Financial Centre (DIFC) are excluded. For all other eligible establishments, this is a chance to tap into the broader Dubai market while retaining their free zone advantages.

Key Requirements for Mainland Expansion

To make the most of this opportunity, free zone businesses must meet certain conditions:

-Licensing: Obtain a branch licence from the DET to operate on the mainland or within another Dubai free zone.

-Financial Records: Maintain separate financial accounts for mainland operations to ensure transparency.

-Activity Permits: Apply for permits if engaging in specific activities outside the free zone.

-Workforce Rules: Follow outlined conditions for employing staff in these new ventures.

The DET, working with relevant licensing authorities, will release a detailed list of approved economic activities within six months. This list will clarify what businesses can do based on whether they hold a mainland branch licence, a branch with free zone headquarters, or a specific activity permit.

Setting Up a Business in a Dubai Free Zone

For those new to Dubai’s business ecosystem, setting up in a free zone is a popular choice—and now, with mainland expansion options, it’s even more appealing. Here’s a quick guide:

Choose a Free Zone: Dubai has over 30 free zones, each tailored to specific industries like technology (Dubai Internet City), trade (Jebel Ali Free Zone), or media (Dubai Media City). Pick one that suits your business.

Select a Business Activity: Define what your company will do—trading, consulting, manufacturing, etc. The free zone authority will provide a list of permitted activities.

Register Your Company: Submit your business plan, passport copies, and other required documents to the free zone authority. You’ll choose a company name and legal structure (e.g., sole establishment, LLC).

Get Licensed: Once approved, you’ll receive a business licence—typically valid for one year and renewable.

Open a Bank Account: Set up a corporate account to manage your finances.

Secure Visas: Apply for residency visas for yourself and employees through the free zone.

With the new resolution, you can now take this free zone setup and expand it to the mainland by applying for a DET licence—bridging the best of both worlds.

Compliance and Timeline

Businesses expanding under this resolution must comply with federal and local laws, including inspections by relevant authorities. Existing free zone companies have one year from the resolution’s effective date (March 17, 2025) to align their mainland operations with its rules. If needed, the DET Director General can extend this grace period by an additional year, offering flexibility during the transition.

Why Freezone Expansion to Mainland is a Better Option?

This resolution reflects Dubai’s commitment to fostering a dynamic, investor-friendly economy. By breaking down barriers between free zones and the mainland, it encourages businesses to scale up, diversify, and contribute to the emirate’s growth. Whether you’re an entrepreneur starting fresh in a free zone or an established company eyeing mainland opportunity, Dubai’s latest policy makes it easier to thrive.

With the DET set to release the list of approved activities by September 17, 2025, now is the time to explore how this resolution can work for your business. Dubai’s doors are open wider than ever ready for you to step through.

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