Dubai Introduces New Framework Allowing Free Zone Firms to Operate Across the Emirate
Dubai has enacted a new resolution aimed at streamlining the operational reach of free zone companies within the emirate. The regulation permits entities licensed by free zone authorities to carry out business activities across Dubai—provided they secure appropriate authorizations from the Dubai Department of Economy and Tourism (DET).
The resolution excludes financial institutions operating within the Dubai International Financial Centre and requires all entities to adhere to applicable federal and local laws. Companies must maintain distinct financial records for operations inside and outside the free zones.
In cases where businesses intend to operate beyond Dubai’s borders, they must obtain necessary approvals from relevant regulatory bodies.
The Dubai Media Office stated that this regulatory update enhances the business environment by simplifying the process for free zone companies to extend their activities into mainland Dubai.
DET has the authority to grant annual, renewable licenses for branches based within the emirate or linked to a free zone headquarters. Additionally, permits may be issued for specific activities under this framework.
DET, in collaboration with licensing entities, is expected to publish a list of allowable economic activities within six months. The regulation also lays out guidelines for licensing procedures, activity-specific permits, and workforce employment requirements. Entities functioning under this framework will be subject to inspections.
This initiative aligns with Dubai’s D33 economic strategy, which seeks to double the city’s economy to Dh32 trillion over the next decade and place Dubai among the top three global cities. The D33 strategy also aims to help 30 private firms attain unicorn status, lead the digital economy, and drive sustainable growth by 2033.
In the first three quarters of the previous year, Dubai’s economy expanded by 3.1%, reaching Dh339.4 billion, with notable contributions from wholesale and retail trade, transport, and financial sectors.
Dubai maintained its global lead in attracting greenfield FDI projects for the fourth consecutive year, with 1,117 initiatives valued at over Dh52.3 billion in 2024—a 33.2% increase compared to 2023. This marked the highest recorded FDI project value since 2020 and a historic peak in project numbers.
