Dubai eases operations for free zone companies
Dubai has introduced a new resolution allowing free zone companies to operate anywhere within the emirate after obtaining the necessary permits from the Dubai Department of Economy and Tourism (DET).
Under the resolution, companies licensed by free zone authorities can operate outside their designated zones within Dubai, provided they secure the required licenses or permits from the DET. However, this does not apply to financial institutions licensed within the Dubai International Financial Centre. Companies must comply with federal and local regulations and maintain separate financial records for operations conducted outside the free zone.
If companies wish to expand beyond Dubai, they must obtain additional licenses from relevant authorities. The resolution also grants the DET authority to issue one-year renewable licenses for companies to establish branches in Dubai or operate with headquarters in free zones. Permits for specific activities within the emirate may also be issued.
The DET, in coordination with licensing authorities, is required to publish a list of approved economic activities within six months. The resolution also details licensing requirements, permit issuance procedures, and workforce employment conditions. Companies operating under this resolution will be subject to inspections.
This initiative aligns with Dubai’s D33 agenda, which aims to double the emirate’s economy to Dh32 trillion ($8.71 trillion) by 2033 and position Dubai among the top three global cities. The agenda also focuses on fostering 30 private companies to achieve unicorn status (start-ups valued over $1 billion).
In 2023, Dubai’s economy grew by 3.1% in the first nine months, reaching Dh339.4 billion, driven by sectors like wholesale and retail trade, transport, storage, and financial services. The emirate also ranked as the world’s top destination for greenfield foreign direct investment (FDI) projects for the fourth consecutive year, attracting 1,117 projects worth over Dh52.3 billion in 2024, a 33.2% increase from the previous year. This marks the highest FDI value since 2020 and a record number of projects in Dubai’s history.
