Free Zone Licenses Can Operate Anywhere in Dubai with DET Approval

Prior restrictions for operating only within the free zone removed for Dubai free zone businesses

Dubai has introduced a new regulation allowing free zone licensed companies to operate anywhere within the emirate, provided they obtain the necessary permit from the Dubai Department of Economy and Tourism (DET).

The decision, issued by Crown Prince Sheikh Hamdan bin Mohammed, aims to enhance business expansion and opportunities for businesses who are licensed within Dubai free zones.

What is the resolution?

The Executive Council Resolution No. (11) of 2025 enables companies licensed by free zone authorities to extend their operations beyond designated zones, with the exception of financial institutions licensed within the Dubai International Financial Centre (DIFC).

Businesses must comply with federal and local regulations, maintain separate financial records for activities conducted outside the free zone, and secure the appropriate permits.

DET has been authorised to issue licenses for establishing a branch within Dubai or a branch headquartered in the free zone. These licenses are valid for one year and can be renewed.

Awaiting a list from DET which outlines the permissible economic activities which is expected within six months of the resolution's enactment.

In 2024 alone, Dubai attracted over 1,117 greenfield FDI projects worth more than AED 52.3 billion, marking a 33.2% increase from 2023. With pivotal regulation changes such as this, Dubai continues to raise the standards for economic excellence.

This presents massive opportunities for free zone businesses in Dubai where they were previously restricted to operating only within their free zone. This aligns with Dubai’s ongoing efforts to attract global investment, support entrepreneurship, create new jobs and reach it’s Dubai Economic Agenda goal to double the size of the city’s economy by 2033.

Set up a free zone company in Dubai with Sovereign PPG, we will guide you through the updated regulation changes, acquiring the appropriate activities for your business licence and support the ongoing success of your business in the Emirate with corporate governance support packages. Contact Dubai@SovereignGroup.com