Dubai’s dynamic business landscape has taken a major leap forward with a new resolution allowing free zone companies to expand their operations into the mainland. This policy change marks a significant shift, enabling businesses in free zones to tap into a broader market without the previous restrictions.

Understanding the Free Zone and Mainland Divide

Dubai’s business environment has traditionally been divided into two key sectors: free zones and the mainland.

• Free zones offer attractive benefits such as 100% foreign ownership, tax exemptions, and simplified customs regulations. However, companies registered in these zones were historically restricted from conducting business directly in the mainland without involving a local distributor or partner.
• Mainland businesses, on the other hand, operate under the Dubai Department of Economy and Tourism (DET) and were previously required to have a local Emirati partner holding at least 51% ownership.

With the new policy, free zone companies can now establish a presence in the mainland, bridging the gap between these two sectors and fostering a more integrated business environment.

Key Benefits for Businesses

This groundbreaking move offers several advantages for free zone companies looking to expand:

• Access to a Larger Market – Companies can now directly engage with mainland clients, increasing their revenue potential.
• Greater Investment Opportunities – Businesses can expand operations, form new partnerships, and bid for government contracts.
• Streamlined Regulations – The process of obtaining approvals has been simplified, making it easier for businesses to set up operations.

What’s Next for Investors?

The new regulation is expected to drive more foreign investment into Dubai, reinforcing its status as a global business hub. Entrepreneurs and investors looking to expand into the mainland should stay updated on regulatory requirements and ensure compliance with DET guidelines.

As Dubai continues to enhance its business-friendly policies, this development is set to create new opportunities and foster a more connected and competitive marketplace.