There has been the introduction of a new regulation in Dubai which offers great opportunities for businesses within the free zones of Dubai. According to Executive Council Resolution No. 11 of 2025, businesses within the free zones which qualify will be able to obtain permits/ licenses allowing them to Free Zone Mainland operating permit in Dubai. This regulation is expected to make doing business in Dubai easier and friendlier.

If you are considering establishing a business in Dubai or even have a business in one of the free zones of Dubai, then it will be useful for you to know about this new regulation.

What Is Dubai’s New Free Zone Mainland Operating Permit?

Until now, most free zone companies could only trade either inside the particular free zone or conduct business abroad. In order to be able to offer their services to customers in mainland Dubai, such companies would be required to set up a separate business in the mainland area or use an authorized distributor.

However, with the emergence of the Executive Council Resolution No. 11 of 2025, eligible free zone companies can now choose to obtain a Free Zone Mainland Operating Permit or create a licensed branch in mainland Dubai depending on their activities.

Why Is This Update Important?

Dubai is steadily reinforcing its standing as one of the world’s top choices for entrepreneurs and foreign investors.

The new legislation provides companies with:

• Increased access to customers from the mainland
• Greater freedom to grow
• Less necessity for establishing different forms of businesses
• Opportunities for growing their business in Dubai
• Improved legal framework for growing businesses

This aligns with Dubai’s plan to attract investments and encourage business growth. The Free Zone Mainland Operating Permit plays a key role in helping companies expand into the mainland smoothly.

Who Can Benefit?

The new regulations will be useful for various types of businesses such as:

• Technology-based companies
• E-commerce companies
• Consulting companies
• Marketing companies
• Trading companies
• Service-based companies
• Manufacturing companies

Businesses that intend to expand in Dubai in the long run will definitely find the regulation very useful.

Available Options for Free Zone Companies

Based on the type of the business being conducted, there could be different expansion methods suitable for eligible companies.

1. Mainland Operating Permit

This is a license that enables companies that are registered in the free zones to conduct some business operations in mainland Dubai, and not necessarily setting up a completely new company.

2. Mainland Branch Licence

A business firm seeking more visibility in the market can set up a business branch in mainland Dubai.

This will depend on the nature of business, its requirements, and the approval from the respective authorities.

Key Conditions Businesses Should Know

While the new regulation opens up new opportunities, the need to comply with government regulations is still there.

These include:

• Approvals must be obtained for business activities.
• Licensing and permits must be acquired for business operations.
• Compliance is mandatory.
• Additional approvals may be needed for some business activities.
• Tax and license regulations must be followed by businesses.

Companies need to look at their business operations before applying for expansion.

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How Does This Benefit Foreign Investors?

Many foreign investors consider Dubai due to its strategic location, excellent infrastructure, and good environment for business.

The advantages of this new regulation include:

• More market access
• Easy customer acquisition
• Flexibility of operations
• Simple expansion plan
• Investment options

Now companies have an option to expand without being constrained by certain restrictions existing before between free zones and on the mainland.

Should Existing Free Zone Companies Take Action?

If you currently have your business operating in a free zone in Dubai and you plan to target mainland customers directly, you might want to consider whether this new scheme would apply to your organization.

Not all businesses will need to have their mainland permit right away. This depends on:

• Business activity
• Customer base
• Future expansion plans
• Regulatory requirements

What Does This Mean for Dubai’s Business Environment?

The issuance of Executive Council Resolution No. 11 of 2025 shows Dubai’s effort towards enhancing its business environment.

Through increasing access for qualified companies from the free zones to the mainland activities, Dubai is simplifying the way for business growth while adhering to the regulatory requirements.

Entrepreneurs who are thinking about business setup in UAE will have more options while deciding on forming either a free zone or mainland company setup.

Conclusion

The Dubai Free Zone Mainland Operating Permit is a significant change for businesses that wish to establish themselves in the UAE. This new regulation allows eligible businesses to have more ways to access mainland customers, enhance their operations, and establish themselves in one of the fastest-growing commercial centers in the world.

If you are starting a business or expanding your current free zone business, then you need to know about this new regulation.

FAQs

1. What is Dubai Executive Council Resolution No. 11 of 2025?

This is a law which provides for the operation of eligible free zone companies in mainland Dubai through approved licenses or permits.

2. Can all free zone companies operate in mainland Dubai?

No. Only those free zone companies which are eligible and have obtained the relevant approvals can operate in mainland Dubai.

3. Is licensing necessary for any business?

Yes. The necessary licenses or permits are necessary for businesses.

4. Who can take advantage of this law?

Companies dealing with technology, consultants, traders, ecommerce businesses, manufacturing firms, and many other companies can take advantage of the same.

5. What services does e-startup.ae offer?

e-startup.ae offers you expert guidance for business set-up in Dubai, establishment of free zone companies, licensing in mainland Dubai, and business expansion among other services.