Dubai has opened a clear route for free zone establishments (FZEs) to carry out activities onshore in the Emirate, under a new licensing and permit framework administered by the Dubai Department of Economy & Tourism (DET). The change comes via Executive Council Resolution No. (11) of 2025 – Regulating the Conduct of Free Zone Establishments’ Activities within the Emirate of Dubai (the “Resolution”). Dubai Land Department
What’s changed—at a glance
- Free zone companies can now operate in mainland Dubai by obtaining a DET licence or permit (financial institutions licensed by DIFC are excluded).
- Three DET routes are available:
- Fees (set in the Resolution): AED 10,000/year for a branch operating out of the free zone; AED 5,000 for issuing/renewing a temporary permit. (The standard branch-in-mainland licence fee is not specified in Article 12; other DET schedule fees may apply.)
- Existing free zone staff can be used onshore, retaining free zone employment benefits. The DET will publish a list of eligible economic activities (within six months of the Resolution’s effective date) that can be undertaken onshore via each route.
- A one-year grace period applies for businesses already operating onshore at the time the Resolution took effect, to regularise their status. (One extension of up to one year may be granted.)
Dubai authorities have also highlighted the digital journey: eligible free zone companies holding a Dubai Unified Licence (DUL) can apply online through Invest in Dubai, supporting the D33 agenda for growth and a unified investor experience.
Who is in scope?
- All non-DIFC free zone companies seeking to carry out activities outside their free zone and within Dubai. The Resolution does not apply to financial establishments licensed by DIFC.
Core compliance conditions
To obtain a licence/permit, companies must (among other points):
- Hold a valid free zone licence and secure prior approval from the relevant free zone authority.
- Obtain approvals from sector regulators (where applicable).
- Maintain separate financial records for onshore activities.
- Open a local headquarters for a mainland branch (if that route is chosen).
- Pay prescribed DET fees and satisfy any additional conditions set by the DET Director General.
Practical options and when to use them
- Mainland Branch (outside the free zone): best for sustained, client-facing operations requiring a physical presence onshore. Licence term: 1 year, renewable. Branch Operating out of the Free Zone: suited to models that remain based in the free zone but need onshore execution for certain activities (fee: AED 10,000/year). Temporary Permit (up to 6 months): ideal for short-term projects, pilot activities, events, or transitions (fee: AED 5,000).
Governance, audit, and enforcement
Entities authorised under the Resolution are subject to Dubai’s applicable legislation, inspections, and administrative penalties where relevant. Branches created under the Resolution have no separate legal personality—they are not independent from the parent entity.
Why this matters
- Fewer structural hurdles: Many FZEs previously needed an onshore company/agent to transact in mainland Dubai. The Resolution formalises direct access through DET, cutting friction and time-to-market.
- Operational flexibility: Able to redeploy existing free zone workforce to onshore activities while maintaining their free zone employment status. Aligned with D33: The policy underpins Dubai’s plan to double the economy by 2033 and standardise the investor journey. Government of Dubai Media Office
Action points for free zone companies
Regularise existing activity: If you were already operating onshore when the Resolution took effect, meet the one-year compliance deadline .
Map activities: Confirm if your onshore services align with the DET list of eligible activities and choose the appropriate route (branch vs. temporary permit).
Prepare filings: Gather corporate documents (AoA/MoA, free zone licence, manager’s passport/EID) and obtain free zone authority pre-approval.
Set controls: Implement separate accounting for mainland operations and update contracts, insurance, tax, and HR frameworks accordingly.
Use IID: If you hold a DUL, apply digitally through Invest in Dubai for a streamlined process.
