Dubai has introduced a pivotal regulation allowing businesses operating within free zones to expand into the mainland, making Company Formation in the UAE more flexible and accessible.
This groundbreaking move, sanctioned by Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, grants free zone enterprises—except financial institutions regulated under the Dubai International Financial Centre (DIFC)—the opportunity to conduct business beyond their designated areas upon securing the required approvals from the Dubai Department of Economy and Tourism (DET).
This regulatory shift is a crucial component of the Dubai Economic Agenda (D33), which aims to significantly expand the city’s economy by 2033, reinforcing its position among the world’s leading commercial hubs. The decision is anticipated to create a more dynamic business environment, stimulate innovation, and attract higher investment inflows.
Key Advantages for Businesses
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Expanded Market Reach:
Companies can now tap into the mainland market, broadening their customer base and business opportunities. -
Diverse Licensing Pathways:
Enterprises may apply for a DET-issued branch license or secure a permit for specific activities in the mainland. -
Regulatory Framework Compliance:
Businesses must uphold distinct financial records for both free zone and mainland operations and adhere to applicable local and federal regulations.
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License Validity and Renewal:
The new licenses will be issued for one year, with the option for renewal.
Implementation and Regulatory Compliance
The DET, in collaboration with relevant authorities, will issue a comprehensive list of permitted economic activities within six months. Existing companies already operating outside free zones are required to align with the new directives within a year, with a possible extension of up to another year upon DET’s approval.
This strategic move reaffirms Dubai’s pro-business policies, fostering a seamless and supportive ecosystem for enterprises to expand and thrive. The resolution is now officially in effect following its publication in the Official Gazette.
For official updates, visit the Dubai Department of Economy and Tourism and the Dubai Media Office.
