In a revolutionary step for the UAE business environment, the Emirate of Dubai has adopted Executive Council Resolution No. 11 of 2025, which allows companies registered in free zones to conduct business directly in mainland Dubai (local commercial zone). This new legal framework is a central element in the D33 growth strategy and promises to radically transform the entrepreneurial landscape in the region.
What does this resolution mean for your business?
Previously, companies registered in a free zone were limited to carrying out activities within that zone or to international exports. However, the new regulations offer the possibility of operational expansion to the internal market without the need to set up a completely separate commercial entity on the mainland.
This gives entrepreneurs and investors unprecedented flexibility and opens the doors to direct collaborations with local partners, access to end consumers, direct sales in Dubai and the opportunity to participate in government contracts.
The three legal options for companies in free zones
According to Resolution 11/2025, companies registered in free zones can choose one of the following three options to operate in the mainland:
1. Opening a branch in the mainland— A secondary legal entity, regulated by local economic authorities, which can carry out commercial activities directly. The license is valid for 1 year with the possibility of renewal.
2. Obtaining an operating license with its head office in the free zone— The company remains registered in free zones, but receives approval to carry out specific activities in the mainland.
3. Temporary work permit— A permit valid for a maximum of 6 months, intended for specific projects or limited commercial activities.
Important exceptions and limitations
The new resolution does not apply to financial institutions regulated by the DIFC (Dubai International Financial Centre), which will continue to operate under separate financial legislation.
Also, the exact list of activities allowed in the mainland is to be published within 6 months by the Dubai Department of Economy and Tourism (DET).
Tax implications: mixed tax regime
Economic activities carried out in the mainland will be subject to a corporate tax of 9%, according to federal tax law. At the same time, income obtained exclusively in the free zone can benefit from tax exemption if it complies with economic requirements.
Therefore, companies operating both in free zones and in the mainland must maintain separate accounting, in order to clearly highlight the source of income and avoid duplication of tax obligations.
Strategic benefits for entrepreneurs and investors
The new resolution offers a wide range of competitive advantages, including:
• Direct access to the domestic market of Dubai and expansion of the customer base.
• Reducing operational costs, by eliminating the need to create completely separate legal entities.
• Simplify compliance processes with clear legal options and transparent regulations.
• Increasing the visibility and trust of the brand, through presence in both segments: free zone and mainland.
• Eligibility for public projects and strategic partnerships with local authorities and large companies.
Recommended steps for companies looking to expand in the mainland
1. Evaluate current activities and identify what services or products can be offered in the local market.
2. Choose the right type of license: subsidiary, extended license or temporary license.
3. Seeks the necessary approvals from DET and other relevant authorities.
4. Updates accounting systems, to reflect income from different sources.
5. Ensure that staff working in the mainland have visas that comply with labor laws.
6. Monitor compliance deadlines and subsequent legislative updates.
How does this change align with Dubai Economic Agenda D33?
Resolution 11/2025 is a key tool in the implementation of the Dubai Economic Agenda D33, an ambitious plan that aims to:
• To double the size of the economy by 2033;
• To attract massive foreign direct investment;
• Transform Dubai into a global hub of business, technology and innovation.
By facilitating access to the local market, authorities support not only economic growth, but also cross-sectoral innovation and collaboration between different business ecosystems.
Strategic Business Opportunity in Dubai
Executive Council Resolution 11/2025 is a strategic move that may redefine the way business works in Dubai. By connecting free zones with the local market, companies benefit from more flexibility, visibility and access to diversified revenues.
In a competitive and dynamic economic environment, adaptability and strategic planning will differentiate between companies that only react and those that lead change. If you own a business in Dubai, now is the ideal time to re-evaluate your operating model and explore the benefits of a mainland presence.
