Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, the Crown Prince of Dubai and Deputy Prime Minister and Minister of Defense, has issued Executive Council Resolution No. (11) of 2025. This resolution governs the operations of free zone establishments wishing to conduct activities outside their designated areas within the Emirate of Dubai. It is important to note that financial establishments licensed to operate within the Dubai International Financial Centre (DIFC) are exempt from these regulations.

The new regulations align with the goals of the Dubai Economic Agenda D33, which aims to double the size of the Emirate’s economy over the next ten years and establish Dubai as one of the top three economic cities globally. The decision reflects significant progress in enhancing the business environment in Dubai, allowing free zone entities to expand their operations. This move is in line with the ambitious economic agenda to create a dynamic business ecosystem that enhances competitiveness and improves the efficiency of both local and international businesses in the city.

According to the resolution, companies authorized to operate within the free zones can now conduct activities outside designated areas within Dubai, provided they obtain the necessary licenses or permits from the Dubai Department of Economy and Tourism. Furthermore, these entities must adhere to federal and local laws related to their intended activities and maintain separate financial records for their operations in Dubai, distinct from those in the free zones.

The resolution also allows the Dubai Department of Economy and Tourism to grant licenses for establishing branches of these entities within the emirate. The duration of these licenses is set for one year and can be renewed for similar periods. Additionally, it permits the issuance of permits for conducting specific activities within Dubai for a maximum duration of six months. The resolution outlines the conditions for issuing these branch licenses and the procedures for obtaining activity permits.

The Dubai Department of Economy and Tourism is tasked with publishing a list of permissible economic activities within six months from the resolution’s implementation. This list will specify whether the activities can be undertaken under a branch license within the emirate or a branch located in the free zone.

Moreover, the resolution stipulates that any free zone entity licensed to operate in Dubai will be subject to oversight and inspection based on applicable federal and local laws. This ensures compliance with the established regulations and fosters a structured approach to business operations.

Entities currently engaged in activities outside the free zones must align their operations with the new regulations within one year of the resolution’s enactment. The Director-General of the Dubai Department of Economy and Tourism has the authority to extend this deadline if necessary. The resolution will be published in the official gazette and will take effect from the date of its publication.