The Dubai Executive Council has issued Resolution No. (11) of 2025, a pivotal legislative move designed to enhance business expansion opportunities for entities established within Dubaiโs free zones. This Resolution enables these entities (excluding financial institutions licensed within the DIFC) to extend their operational footprint into mainland Dubai through the issuance of specific licenses and permits by the Dubai Department of Economy and Tourism (DET).
๐๐ฒ๐ ๐ฃ๐ฟ๐ผ๐๐ถ๐๐ถ๐ผ๐ป๐:
โ
Branch Establishment License: Allows for the formal establishment of a branch of the free zone entity within mainland Dubai, adhering to existing branch establishment requirements.
โ
Branch License with Free Zone Headquarters: A specialized license with a one-year validity, priced at AED 10,000 for issuance and renewal, for entities maintaining their primary headquarters within a Dubai free zone.
โ
Temporary Activity Permit: Grants authorization for free zone entities to conduct specific activities within mainland Dubai for a period of up to six months, with an issuance and renewal fee of AED 5,000.
๐ข๐ฝ๐ฒ๐ฟ๐ฎ๐๐ถ๐ผ๐ป๐ฎ๐น ๐๐ฟ๐ฎ๐บ๐ฒ๐๐ผ๐ฟ๐ธ:
The issuance of these licenses and permits is contingent upon approval from the DET and any other relevant UAE regulatory authorities overseeing the specific business activity within mainland Dubai. Crucially, operations outside of Dubai will still require the correct permits from those individual Emirates. All businesses operating under these new licenses will be subject to inspections in accordance with federal and local laws. โ๏ธ
๐๐บ๐ฝ๐ผ๐ฟ๐๐ฎ๐ป๐ ๐๐ผ๐ป๐๐ถ๐ฑ๐ฒ๐ฟ๐ฎ๐๐ถ๐ผ๐ป๐:
๐ Activity List: The DET, in collaboration with relevant licensing authorities, will publish a detailed list of permissible economic activities within six months of the Resolutionโs issuance (March 2025).
๐ Financial Records: Entities operating under these new provisions must maintain separate financial records for their mainland operations.
๐ธCorporate Tax: Mainland operations will be subject to the standard 9% corporate tax rate, distinct from the 0% rate applicable to qualifying free zone income.
โ ๏ธCompliance Obligations: Businesses must adhere to both free zone and mainland regulatory frameworks, which may present compliance challenges.
โณTransition Period: Existing businesses have a one-year transition period to comply, with a potential one-year extension upon DET approval.