Dubai enhances flexibility for free zone companies expanding operations
20 March 2025.
By Asel Omorova
Dubai has introduced a new resolution allowing businesses licensed by a free zone authority to operate beyond their designated free zone, subject to obtaining the necessary approvals from the Dubai Department of Economy and Tourism (DET).
The initiative aligns with Dubai’s D33 agenda, which aims to double the emirate’s economy to AED 32 trillion by 2033. By facilitating expansion opportunities for businesses operating in free zones, the resolution strengthens Dubai’s position as a global business hub, attracting foreign investment and supporting high-growth enterprises, including ‘unicorn’ start-ups valued at over USD 1 billion.
Key considerations for businesses include:
- Licensing and permits: Companies must secure the necessary approvals for operations within Dubai and comply with all applicable local and federal regulations. This framework applies to all free zone businesses excluding those within the DIFC.
- Separate financial records: Businesses must maintain distinct financial records for their activities inside and outside the free zone.
- Annual licensing: The DET can issue renewable one-year licenses for establishing branches within Dubai, including those of free zone-based businesses.
This resolution provides greater flexibility for businesses seeking to scale their operations, opening up new prospects both within and beyond free zones. It also reinforces Dubai’s commitment to fostering a dynamic and globally competitive business environment.
To explore the impact of this change and the opportunities it presents, please get in touch.
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