In a strategic move to further dissolve the boundaries between free zones and the mainland, H.H. Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum has issued Executive Council Resolution No. (11) of 2025. This resolution provides a legal bridge for free zone establishments to scale their operations across the entire Emirate of Dubai.
Announced on March 17, 2025, this policy serves as a cornerstone of the Dubai Economic Agenda (D33). By allowing free zone companies to engage in mainland commerce, Dubai is accelerating its mission to double its GDP and solidify its standing as one of the world’s top three economic powerhouses by 2033.
Traditionally, the “free zone” model offered incredible perks—such as 100% foreign ownership and tax incentives—but restricted physical trade to within the zone’s borders or international markets. Resolution No. 11 effectively dismantles these operational silos, granting businesses the flexibility to tap into the thriving mainland market without losing their original identity.
Licensing Integration: To operate outside their designated zone, companies must obtain a specific license or permit from the Dubai Department of Economy and Tourism (DET).
Scope of Application: The resolution applies to all free zone entities across Dubai, with the notable exception of financial institutions based in the Dubai International Financial Centre (DIFC).
Compliance & Transparency: Establishments must adhere to all local and federal regulations. Crucially, they are required to maintain separate financial records for their mainland activities to ensure fiscal clarity.
Inter-Emirate Operations: Companies wishing to expand into other Emirates must still seek the relevant approvals from those specific jurisdictions.
The DET, in collaboration with relevant free zone authorities, is tasked with releasing a definitive list of approved economic activities within the next six months. This list will serve as a strategic guide for businesses planning their expansion into the mainland ecosystem.
This resolution is more than just a procedural update; it is a catalyst for economic integration. By blending the strengths of the free zones with the scale of the mainland, Dubai is fostering a more resilient and interconnected business environment. This shift is expected to:
Stimulate Job Creation by allowing businesses to scale their workforce.
Encourage Innovation by removing geographical restrictions on service delivery.
Enhance Global Competitiveness by offering a truly “borderless” business experience within the city.
Through this forward-thinking legislation, Dubai continues to prove that its regulatory framework is as dynamic and ambitious as the businesses it hosts.
