Introduction Free Zone Businesses to Mainland

Dubai Free Zone Businesses to Mainland is now a reality, their move possibility, that is. In a groundbreaking step to stimulate economic growth and innovation, Dubai has introduced Executive Council Resolution No. (11) of 2025. This new policy allows free zone establishments to open branches on the mainland, a move that is expected to transform the business landscape by enhancing operational flexibility and expanding market access.

Strategic Rationale Behind the Resolution

Economic Revitalization:
Dubai’s government aims to strengthen its economic framework by breaking down long-standing barriers between free zones and the mainland. This integration facilitates smoother business operations and encourages a more diversified investment portfolio within the emirate.
Global Competitiveness:
By allowing free zone companies to extend their reach, Dubai is positioning itself as a more dynamic and accessible hub for international investors and entrepreneurs. This progressive policy not only bolsters domestic markets but also sends a strong message of openness and modernity to the global business community.
Enhanced Collaboration:
With this resolution, businesses can now benefit from the synergies created by being active in both free zone and mainland environments. The resulting cross-pollination of ideas and resources is expected to drive innovation, improve operational efficiencies, and create new avenues for collaboration.

Key Highlights of the Resolution

Expansion Opportunities:
- Mainland Branches:
  Free zone companies can now set up branches on the mainland, enabling them to serve a wider customer base and tap into new market segments. This flexibility is particularly beneficial for firms looking to scale their operations or diversify their revenue streams.
- Economic Integration:
  The seamless transition between free zone and mainland operations fosters a more integrated economic environment. Companies can leverage the advantages of both zones—retaining free zone benefits while accessing the expansive mainland market.
Licensing and Compliance Requirements:
- Regulatory Oversight:
  Businesses seeking to establish a mainland branch must secure the necessary licenses from the Dubai Department of Economy and Tourism (DET). This ensures that all mainland operations adhere to local standards and regulatory guidelines.
- Maintaining Standards:
  The licensing process is designed to uphold the integrity and competitiveness of Dubai’s market. It ensures that all new entrants operate in compliance with established legal frameworks, thus maintaining a level playing field for both new and established businesses.
Specific Exclusions:
- Targeted Restrictions:
  Not all sectors are eligible under this new framework. Financial institutions that are already licensed within the Dubai International Financial Centre (DIFC) are specifically excluded from these provisions. This exclusion is intended to maintain robust regulatory oversight in sectors that require heightened risk management and supervision.
- Focused Economic Zones:
  By keeping certain high-regulation sectors within their specialized zones, Dubai ensures that the unique requirements and risks associated with these industries are managed under tailored regulatory frameworks.

Implications for Non-Dubai Free Zones

While Dubai’s resolution specifically addresses free zone companies within its jurisdiction, the broader policy context in the UAE has been evolving. Across the UAE, efforts are underway to enhance the integration between free zones and the mainland:

Historical Context:
Traditionally, free zone companies in other emirates have been able to conduct mainland activities through branch establishments, local distribution agreements, or by appointing service agents. This historical framework set the stage for broader economic integration within the UAE.
Local Regulatory Variations:
It is important for businesses operating in free zones outside of Dubai to recognize that local rules and policies may differ. Each emirate has its own set of regulations governing mainland operations, and companies should consult local authorities or legal experts to fully understand these requirements.
Strategic Considerations:
Free zone companies outside Dubai can still leverage the general trend toward greater integration. By carefully analyzing their local regulatory environment and adopting best practices from Dubai’s approach, these companies can identify new opportunities for expansion and market penetration.

Broader Economic Impact of Dubai Free Zone Businesses to Mainland

Attracting Global Investment:
The resolution is part of a broader initiative to enhance Dubai’s status as a global business hub. By making it easier for free zone companies to access the mainland, Dubai is creating a more attractive investment climate for foreign investors looking to benefit from a dual advantage—retaining free zone benefits while operating in a vibrant, larger market.
Fostering a Dynamic Business Ecosystem:
This policy move underscores Dubai’s commitment to building a robust and inclusive business environment. By bridging the gap between free zones and the mainland, the resolution promotes healthy competition, innovation, and sustainable economic growth.
Long-Term Economic Vision:
Dubai’s forward-thinking approach is designed to support long-term economic diversification. As the business landscape evolves, the ability to operate across multiple zones without traditional barriers will be critical for maintaining Dubai’s competitive edge in an increasingly interconnected global economy.

Conclusion Free Zone Businesses to Mainland

Dubai’s Executive Council Resolution No. (11) of 2025 represents a strategic pivot towards economic integration and market expansion. By empowering free zone businesses to operate on the mainland, the resolution not only enhances operational flexibility but also attracts global investment and fosters a more collaborative business environment. For companies looking to expand, understanding the licensing requirements, sectoral exclusions, and the broader implications for regulatory compliance is essential.

This initiative stands as a testament to Dubai’s commitment to modernizing its economic framework, ultimately creating a dynamic and inclusive ecosystem that benefits both local businesses and international investors alike.

***

We hope this post will help you and remain available for any questions regarding this post of general application.

For more information published in English you can visit all our publications at this link as well as the videos in English of our Managing Partner Maria Rubert.

*The information on this page is not intended to be legal advice. This article is intended to provide an initial introduction to the the recent changes allowing free zone business to mainland move.