On March 17, 2025 announced the release of Executive Council Resolution No. 11 of 2025. This regulation addresses the operation of businesses within Dubai’s free zones, excluding financial institutions operating in the Dubai International Financial Centre (DIFC). The resolution is a major step toward transforming Dubai into a global business leader, aligning with the D33 Economic Agenda launched by His Highness Sheikh Mohammed bin Rashid Al Maktoum in January 2023. This plan outlines the ambitious goal of positioning Dubai as the world’s premier business and innovation hub by 2033.

What Does This Mean for Businesses in Dubai?

Previously, businesses established within Dubai’s free zones that sought to expand into the mainland were faced with the challenge of creating a separate entity or forming partnerships with mainland companies, both of which could be costly and administratively burdensome. The new Executive Council Resolution effectively eliminates this requirement by introducing a streamlined licensing and permit system that simplifies the process of moving into the mainland market.

The regulation now allows businesses in Dubai’s free zones to expand into the mainland without the need to establish a completely new entity. This shift is designed to enhance operational flexibility, reduce costs, and provide a more seamless transition for businesses eager to grow their presence across the emirate.

The Mechanics of the new licensing system.

Under the new resolution, businesses in Dubai’s free zones will be able to obtain one of two types of licenses:

1. Branch License for Mainland Operations: This license enables a company to establish a branch in mainland Dubai while maintaining its original free zone operations.
2. Free Zone Headquarters with a Mainland Branch: This option allows businesses to set up a mainland branch with their headquarters remaining in the free zone, subject to specific conditions.

Businesses wishing to operate under the new framework will need to obtain the appropriate licenses or permits from the Dubai Department of Economy and Tourism. It is crucial that companies maintain compliance with both federal and local laws, including keeping separate financial records for their mainland operations.

Opportunities for Businesses.

This resolution presents an exciting opportunity for businesses to expand their market presence and improve visibility without the need for separate legal entities. By enabling businesses to operate across both the mainland and free zones, it opens up a broader customer base and reduces the costs of expansion.

For companies already operating across both Dubai’s mainland and free zones, this resolution offers an opportunity to restructure their corporate licensing arrangements. It allows businesses to take advantage of both operational flexibility and the ability to reassess current strategies for more efficient and cost-effective operations.

Broader Trends in the UAE’s Business Landscape.

The new resolution in Dubai is part of a larger trend toward regulatory modernization in the UAE. Similar initiatives have been implemented across other emirates, such as the Abu Dhabi Department of Economic Development’s (ADDED) Dual License Initiative, which enables businesses in Abu Dhabi’s free zones to establish branches without requiring physical premises during their first year. This reflects the UAE’s drive to streamline business processes, remove barriers to entry, and foster investment and trade.

Furthermore, the UAE’s decision to relax foreign ownership restrictions in mainland companies, effective through changes to the UAE Commercial Companies Law in 2020, has significantly contributed to creating an even more business-friendly environment.