A New Resolution Empowering Dubai’s Business Growth

Known for its business growth-oriented regulations, Dubai has now enhanced its position as a hub for investment, entrepreneurship, and sustainable development, with the issuance of a new resolution that allow free zone companies to integrate into the mainland.

Dubai’s Executive Council has recently issued Resolution No. 11 of 2025 that aims at regulating the operations of free zone companies which seek to operate beyond their designated zones (“Resolution”). The Resolution will not apply to the financial institutions licensed to operate within the DIFC.

Under the Resolution, companies licensed by a relevant free zone authority are permitted to operate outside the free zone and within Dubai, provided they obtain the required licenses or permits from the Dubai Department of Economy and Tourism (DET).

The free zone entity can undertake business in the Emirate of Dubai through the following means:

• Issuing a license to establish a branch of the entity within the Emirate.
• Issuing a license to establish a branch of the entity with its headquarters within the free zone.
• Issuing a permit for the establishment to practice some activities within the Emirate

Further, according to the Resolution and to promote transparency and compliance with regulatory standards, companies seeking to operate beyond the free zone must maintain separate financial records for their operations conducted outside the free zone, ensuring clear distinction from those associated with activities within the free zone.

The Resolution outlines that the DET, within six months and in coordination with the relevant licensing authority, shall issue a list of economic activities which companies are authorized to conduct in Dubai. This list will depend on whether such companies hold a branch license in the emirate, a branch with its headquarters in the free zone, or a permit for specific activities.

It is important to note that any company licensed to operate within the Emirate under this Resolution is subject to inspection in accordance with the applicable federal and local laws, as well as to the procedures and guidelines established through agreements between the DET and the relevant licensing authority, hence honouring the operational standards too.

The Resolution gave free zone companies currently operating outside the free zone and within the Emirate of Dubai one year from the Resolution’s effective date to align their operations with the new regulatory requirements. However, this period may be extended by the Director General of the DET, if so required, for an additional year, offering businesses more flexibility to comply with the Resolution’s requirements. The Resolution will take precedence over any conflicting resolutions and will come into effect from the date of its publication in the Official Gazette.

It goes without saying that this Resolution represents a significant step forward in creating a more secure and supportive environment for businesses to thrive in the free zones and across Dubai mainland alike, offering greater opportunities for growth, innovation, and long-term success.

For further advice on related matters, please contact Charbel Fadel, Partner at Galadari Advocates and Legal Consultants, at charbel@galadarilaw.com

Charbel Fadel Partner charbel@galadarilaw.com