Dubai's New Regulation Allows Free Zone Companies to Operate in Mainland

Dubai has introduced a new regulation permitting free zone companies to expand their operations into the mainland, aiming to enhance economic integration and attract further investment.

Key Aspects of the Regulation:

• Permit Requirement: Free zone companies can now operate anywhere within Dubai after obtaining the necessary permit from the Dubai Department of Economy and Tourism (DET).

• Compliance: Companies must adhere to both federal and local regulations and maintain separate financial records for their free zone and mainland operations.

• Licensing: The DET is authorized to issue licenses allowing free zone establishments to operate in mainland Dubai or to open branches within the emirate. These licenses are valid for one year and can be renewed.

Implications for Businesses:

This regulatory change is expected to create a more dynamic and competitive business ecosystem in Dubai, encouraging foreign investment and providing businesses with greater market access. Companies looking to operate beyond Dubai's borders must secure appropriate licenses from relevant authorities in those jurisdictions.

Conclusion:

Dubai's new regulation signifies a progressive step towards economic integration, offering free zone companies the flexibility to operate in the mainland and potentially boosting the emirate's attractiveness as a global business hub.