Dubai Issues Executive Decision Regulating Free Zone Entities Operating Within the Emirate

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His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister, Minister of Defense, and Chairman of the Dubai Executive Council, has issued Executive Decision No. (11) of 2025 regulating the operations of free zone entities within the Emirate of Dubai.

This decision applies to entities wishing to operate outside the free zone, with the exception of financial entities licensed to operate in the Dubai International Financial Centre (DIFC).

This decision aligns with the goals of the Dubai Economic Agenda D33, which aims to double the size of the Emirate’s economy over the next decade and solidify its position as one of the top three economic cities in the world.

It also reflects the significant progress in developing the business environment in Dubai by allowing free zone entities to expand their operations, in line with the wise leadership’s vision to enhance competitive advantages and improve the efficiency of local and global businesses in the city.

The decision stipulates that entities licensed within free zones may operate outside the free zone and within the Emirate of Dubai, provided they obtain the necessary licenses or permits from the Department of Economy and Tourism in Dubai.

These entities must comply with the regulations outlined in federal and local legislation, maintain separate financial records for their activities within the Emirate, and obtain the necessary licenses from relevant authorities.

According to the decision, the Department of Economy and Tourism in Dubai may issue a license to establish a branch of the entity within the Emirate or a license to establish a branch headquartered within the free zone, with a validity period of one year, renewable for similar periods. Additionally, a permit may be issued for certain activities within the Emirate for a period not exceeding six months.

Entities licensed or permitted to operate within the Emirate are subject to inspection and oversight in accordance with relevant federal and local legislation and the procedures agreed upon between the Department of Economy and Tourism in Dubai and the licensing authority.

All entities operating outside the free zone and within the Emirate of Dubai must align their operations with the provisions of this decision within one year of its effective date, with the possibility of extending this period for a similar duration if necessary.

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