Dubai Opens Mainland Market to Free Zone Businesses

UAE, 18 March, 2025 : Dubai has introduced a groundbreaking resolution permitting free zone businesses to expand into mainland Dubai, unlocking new growth opportunities.

Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council, issued the regulation allowing free zone establishments—except financial institutions licensed under DIFC—to operate outside their designated zones with approval from the Dubai Department of Economy and Tourism (DET). This aligns with the Dubai Economic Agenda (D33), which aims to double the city's economy by 2033.

Free zone businesses can now apply for a DET license to set up a mainland branch or obtain a permit for specific activities. Licenses will be valid for one year and renewable. Companies must maintain separate financial records for mainland and free zone operations while complying with federal and local regulations.

The DET, in coordination with licensing authorities, will release a list of permitted activities within six months. Existing businesses operating outside free zones must comply within a year, with an optional one-year extension upon approval.

This move strengthens Dubai’s business-friendly environment, fostering innovation, job creation, and economic expansion. The resolution is now in effect following its publication in the Official Gazette.