Dubai Free Zones Council Reviews New Rules for Business Growth
- 11.07.2025
- Posted by: Uwe Hohmann
- Category: Dubai
The Dubai Free Zones Council recently held its meeting to review strategic initiatives and new policies that will change how businesses operate in Dubai’s free zones. For companies already established or considering setting up in these zones, these changes bring opportunities and some new requirements.
Key Changes Coming to Dubai Free Zones
Executive Council Resolution No. (11) of 2025, from March 2025, will allow free zone businesses to expand locally without setting up separate companies. Companies can now serve both free zone and mainland markets, but they need to obtain additional licenses or permits from Dubai’s Department of Economy and Tourism first. The resolution provides three types of authorizations:
- Branch License within the Emirate – Valid for one year, renewable
- Branch License operating out of the Free Zone – Valid for one year, renewable
- Temporary Permit for specific activities – Valid for up to six months
Companies must maintain separate financial records for activities conducted outside the free zone, distinct from those kept for activities within the free zone. By September 2025, Dubai DET (Department of Economy and Tourism) will publish the detailed list of activities eligible for each license type, providing businesses with more clarity on expansion opportunities.
Enhanced Compliance Framework
The Council reviewed progress on implementing guidelines from the UAE National Anti-Money Laundering and Combating Financing of Terrorism Committee across Dubai’s free zones. Discussions focused on alignment with the National Risk Assessment outcomes, data integrity, operational challenges, and overall compliance readiness. The roadmap covers assessment cycles for 2025-2027.
For businesses, this means tighter compliance rules but also clearer guidelines. The focus on data integrity and operational readiness indicates that authorities are serious about maintaining Dubai’s reputation as a transparent business center.
Streamlined Digital Services and Standards
The Council discussed efforts to streamline licensing and service procedures with local and federal authorities, with emphasis on resolving overlapping jurisdictions and ensuring consistency across regulatory processes. Proposed solutions included full digital transformation, the adoption of unified standards, risk-based classification of activities, and fast-tracking of strategic projects.
The Dubai Unified License system already enables businesses to operate across multiple free zones under a consolidated framework, reducing administrative burdens.
What This Means for Businesses
These updates align with Dubai’s D33 Economic Agenda to double the UAE economy and to position Dubai among the top three global cities.
Current free zone companies will be able to expand to mainland markets while keeping free zone benefits, but must strengthen compliance controls and meet the one-year implementation deadline. Full details will be more precise when the activity list is published by September 2025.
New businesses will benefit from streamlined establishment processes and greater operational flexibility once the activity list is published.
Comprehensive UAE Business Solutions
We work closely with different free zones and local authority to monitor these developments as they unfold. With nearly 20 years of experience helping businesses establish and grow in the UAE, we keep our clients informed about regulatory changes that could impact their operations.
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