Dubai issues new regulation for free zone firms

In a major move to boost business flexibility, Dubai’s Executive Council has issued Resolution No. (11) of 2025, allowing free zone firms to operate beyond their designated zones.

The resolution was issued by Sheikh Hamdan bin Mohammed, Crown Prince of Dubai, Deputy Prime Minister and Minister of Defence, on Monday, March 17.

This regulation opens new doors for businesses seeking to expand within Dubai, provided they secure permits from the Department of Economy and Tourism (DET).

This landmark regulation supports the Dubai Economic Agenda (D33), which seeks to double the city’s economy by 2033 and position Dubai among the world’s top three global economic hubs.

Key highlights:

• Free zone firms can operate outside their zones with a DET-issued renewable one-year license or activity permit.

• Companies must comply with federal and local laws, maintain separate financial records for outside-zone activities, and obtain relevant permits.

• A list of approved activities will be published within six months.

• Financial institutions licensed within DIFC are excluded from this regulation.

• Compliance deadline: One year from the resolution’s effective date, with a possible one-year extension.

This regulation offers new growth opportunities for Dubai’s free zone businesses looking to expand their footprint across the emirate.