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Dubai free zone businesses & Mainland Businesses

Dubai Freezone business can now expand into mainland

 

New resolution to regulate free zone establishments operating outside designated zones

Dubai has implemented a groundbreaking decision permitting free zone enterprises to extend their activities into mainland Dubai, creating new avenues for expansion and investment. 

As Chairman of The Executive Council of Dubai, Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister, and Minister of Defence of the UAE, has announced a new regulation allowing free zone entities – with the exception of financial institutions licensed by the Dubai International Financial Centre (DIFC) – to engage in business beyond their assigned areas, given that they secure the required approvals from the Dubai Department of Economy and Tourism (DET). 

This significant ruling coincides with the Dubai Economic Agenda (D33), which seeks to double the city’s economy by 2033 and strengthen Dubai’s position as one of the top three economic centers globally. 

 

Implications for companies 

• Companies in free zones can now enter Dubai’s mainland market, greatly expanding their customer base. 

• Companies can seek a license issued by the DET to run a branch in mainland Dubai or acquire a permit for certain activities. Licenses will remain valid for one year and can be renewed. 

• The resolution promotes innovation, job growth, and economic engagement by enabling businesses to function smoothly throughout Dubai’s economic environment. 

• Businesses are required to keep distinct financial records for operations in the mainland and free zone, adhering to all federal and local laws. 

 

Implementation, Compliance

The DET, in collaboration with licensing authorities, will issue a list of authorized economic activities within six months. Current businesses functioning outside free zones are required to adhere to the new rules within a year, with a possibility for a one-year extension if granted by DET. 

This action strengthens Dubai's dedication to business-friendly policies, simplifying the process for companies to expand, invest, and succeed. The resolution is now active after being published in the Official Gazette. 

 

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