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Dubai New Resolution 2025 – Freedom for freezone companies to expand to mainland!

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freezone companies to expand to mainland

Dubai has always been a pro-business city. The Emirate, known for its business-friendly environment, ease of business setup and drive for innovation, is cherished by the local and foreigner investors alike.

In a bold move to further solidify its position as a leading economic hub, the government of Dubai has come up with a new resolution that makes a huge difference for freezone businesses operating therein.

Under the new resolution, upon meeting requirements, freezone companies can expand their operations to mainland Dubai. This new initiative aligns with Dubai’s Economic Agenda D33, which aims to double the economy of Dubai by 2033 and list it among the top three global economic cities!

A quick glance at Dubai freezone companies

Dubai free zone

Freezones are special economic areas in Dubai where businesses can be established. These freezones are generally specialized in their respective sectors, have their own regulatory authorities and are well known for the benefits they offer.

There are more than 30 flourishing freezones in Dubai with thousands of businesses thriving therein. Freezone companies enjoy 100% foreign business ownership, tax savings and access developed facilities.

About the resolution:

Dubai freezone companies now free to operate on mainland

Sheikh Hamdan

Photo Source: Dubai Media Office

Dubai’s Crown Prince, Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, has announced a new Executive Council Resolution No. (11) of 2025, which has significant implications for Dubai’s freezone companies.

The announcement was made directly through the official channels of Dubai authorities such as Dubai Government Media Office and the Emirates News Agency (WAM). According to the resolution, licensed freezone companies can now expand their business and operate on Dubai mainland.

This is a major decision that impacts business sector in Dubai. Moreover, it could boost investment and strengthen the economy of the region.

What changed? Initially freezones companies could only operate within designated freezone and outside the UAE. For accessing mainland markets the arrangements were complex. Now, the companies licensed by Dubai freezones can easily operate outside the freezones and within Dubai as long as they obtain the necessary business licenses and permits from the Dubai Department of Economy and Tourism (DET).

Who does resolution apply to?

Freezone companies in Dubai that hold proper license from freezone authorities can now expand to the mainland markets and increase their customer base. However, this resolution does not apply to certain entities, including:

DIFC companies: Businesses registered and licensed with the Dubai International Financial Centre (DIFC) do not come under this resolution.

Existing mainland businesses: Companies already licensed on Dubai mainland are not covered under this resolution.

Businesses outside Dubai: The resolution is for freezone companies in the Dubai Emirate, not outside the UAE or those in the rest of the Emirates.

Licensing of freezone companies on mainland – DET takes up responsibility

Dubai’s Department of Economy and Tourism (DET) is the official authority that regulates businesses on the Dubai mainland. DET has been granted the responsible for issuing licenses and permits to freezone companies in Dubai who plan to operate on mainland, allowing them to legally operate there.

Types of licenses issued:

  1. Branch license: This allows Dubai freezone companies to establish a branch in Dubai mainland, either as an ordinary branch or a branch linked to its freezone headquarters.
  2. Specific activity permits: If a full branch license is not needed, DET may issue special permits for conducting specific activities on the mainland.
  3. Cross-border operations: For those freezone companies that wish to operate outside Dubai or internationally, they must secure the necessary license from the relevant jurisdiction authorities.

Validity and renewal of license:

The DET license will be issued for one year, after which it needs to be renewed annually.

Regulatory compliance requirements under the resolution

Freezone companies that establish a presence on the mainland will be subject to certain legal regulations and requirements set by the DET.

  • Companies must maintain separate financial records for their mainland operations and freezone operations.
  • Companies must strictly follow all local and federal regulations such as labour laws, environment laws, etc.
  • Companies will be subject to regular inspections by the DET and licensing authorities to keep check on compliance.
  • Dubai freezone companies that are already operating outside their freezones under previous workarounds must comply with new resolution provisions within one year of its effective date. A one-year extension may be granted.

What activities would be permitted?

The resolution aims to broaden business prospects for freezone companies. DET will coordinate with different freezone authorities in Dubai to develop a list of permissible economic activities which will be out within six months of the resolution’s announcement date.

This list will clearly define which operations and activities freezone companies can conduct on the Dubai mainland under different DET licenses.

Freezones become even more attractive

Dubai freezones have always been a major attraction for entrepreneurs and investors, and the new resolution increases its appeal further for business setup:

  • Easy business expansion
  • More business opportunities
  • Simplified mainland licensing
  • Foreign investment boost
  • Wider customer base

Initiative opens doors to Dubai’s prosperity

The new resolution reflects the Dubai government’s dedication to supporting businesses. This initiative sends a clear message to the world that when it comes to being an innovation hub, a global trade center and a prime investment destination, Dubai continues to be a leader.

With structural barriers removed, Dubai freezone companies now have access to Dubai’s thriving mainland and can grow like never before. We strongly believe that this initiative will be a catalyst for job creation, innovation and increased economic activity within the city.

Find out what’s next for your business!

One thing is certain, Dubai’s progress is not going to slow down. The city is a major hub for business and startups and leaves no stone unturned when it comes to coming up with initiatives and resolutions that benefit them. The latest resolution allowing freezone companies to establish a presence in Dubai mainland marks a significant step in enhancing the city’s business landscape.

Are you one of those eager to start a business in the city of dreams, Dubai? Surely Dubiz Business Setup can help you with that. They have a team of UAE business setup experts who can guide you through the process of freezone business setup in Dubai or Dubai freezone business expansion to mainland.

Besides that, they also assist with mainland and offshore business setup in Dubai. Be it business registration, licensing, visa processing or business bank account opening, their professionals have knowledge about all the intricacies of UAE company formation.

Discuss your needs over a free consultation with them today!

Quick FAQs

How to expand to mainland as Dubai freezone company?

To expand to mainland as Dubai freezone company you must secure the appropriate license or permit from DET for the intended activity.

What license do freezone companies require to operate on mainland?

To operate on Dubai mainland, freezone companies must get license from Dubai Economic Department which can be branch license or activity specific permit.

Can Dubai freezone companies operate outside Dubai?

To operate in Emirates other than Dubai, Dubai freezone companies must seek approvals and licenses from the concerned authority of respective jurisdiction.

Position: Content Writer
With a strong understanding of the UAE’s regulations and business setup processes, she helps entrepreneurs and businesses navigate the market with ease. Her expertise in business and research allows her to break down complex legal and business concepts into simple and actionable insights. Backed by thorough market research and a solid awareness of current trends, she empowers you to make informed, strategic decisions.

If you have questions about the UAE’s business landscape, her resources offer clear guidance and valuable answers to support your entrepreneurial journey.

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