Northman & Sterling

Dubai’s New Business Rule: What Free Zone Companies Should Know

Dubai Free zone companies

Dubai is making it easier for businesses to grow. A new regulation now allows free zone-licensed companies to operate anywhere in Dubai—as long as they secure the necessary permits from the Dubai Department of Economy and Tourism (DET). This change unlocks exciting opportunities for businesses to expand beyond their free zones. 

What’s New?

Previously, companies registered in Dubai’s free zones could only operate within their designated areas. Now, thanks to a resolution by Crown Prince Sheikh Hamdan bin Mohammed, they can expand across the city—except for financial institutions in the DIFC, which remain exempt.

This is a significant shift for businesses, offering key benefits like:

  • Access to a Larger Market: Free zone companies can now reach more customers across Dubai.
  • Simplified Expansion: There is no need to establish a separate mainland entity to operate outside free zones.
  • Clearer Compliance: A structured permit system ensures businesses can expand legally and confidently.
  • Boosting Economic Growth: This move strengthens Dubai’s position as a business-friendly destination.

What Businesses Need to Know

Before expanding, companies must:

  • Obtain a Permit from DET: Businesses need official approval to operate outside their free zone.
  • Follow Local and Federal Regulations: Compliance with all applicable laws is required.
  • Maintain Separate Financial Records: Companies must track their free zone and non-free zone activities independently.

What This Means for Your Business

If you are in retail, consulting, logistics, or tech, this regulation makes it easier to expand while staying compliant. Now is the perfect time to explore new business opportunities.

Dubai’s latest policy update is a game-changer, providing businesses with more flexibility to grow. By allowing free zone companies to operate beyond their designated areas, the regulation fosters expansion while ensuring regulatory compliance.

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Noor Nadeem