Dubai Executive Council Resolution No. (11) of 2025: A Game-Changer for Free Zone Companies
The recent passing of Dubai Executive Council Resolution No. (11) of 2025 marks a significant milestone for businesses operating within Dubai’s free zones. This landmark resolution allows free zone companies to expand their operations into mainland Dubai, offering them greater flexibility and access to new opportunities.
Key Provisions of the Resolution
At the heart of this resolution lies the ability for free zone companies to obtain onshore licenses and activity permits, enabling them to conduct business beyond the confines of their designated free zones. This move aligns perfectly with Dubai’s ambitious D33 Economic Agenda, which aims to double the size of the emirate’s economy by 2033.
To ensure a smooth transition, the resolution outlines specific licensing options, including licenses for establishing branches and temporary permits for certain activities. The Dubai Department of Economy and Tourism (DET) will be responsible for issuing these licenses and overseeing compliance with relevant regulations.
While free zone companies enjoy the benefit of 0% corporate tax on qualifying income, it’s important to note that this tax advantage does not extend to mainland operations. Businesses operating in mainland Dubai will be subject to the standard 9% corporate tax rate.
Impact on Dubai’s Business Landscape
This resolution is poised to have a profound impact on Dubai’s business landscape. By breaking down barriers between free zones and the mainland, it creates a more integrated and dynamic environment for businesses to thrive. Here are some key anticipated benefits:
- Enhanced Flexibility and Growth: Free zone companies will gain greater flexibility to expand their operations, explore new markets, and cater to a wider customer base.
- Increased Economic Activity: The resolution is expected to stimulate economic activity and attract further foreign investment into Dubai.
- Strengthened Position as a Global Business Hub: By creating a more conducive business environment, Dubai reinforces its position as a leading global business hub.
Looking Ahead
The implementation of this resolution will undoubtedly bring about significant changes for businesses operating in Dubai’s free zones. As the DET finalizes the list of economic activities permissible for mainland operations, we can expect to see a surge of activity as companies explore new avenues for growth and expansion.
The resolution also has the potential to attract new businesses to Dubai, as it offers a more flexible and attractive environment for companies looking to establish a presence in the region. As Dubai continues to evolve as a global business hub, initiatives like this one will play a crucial role in shaping its future.
Please note that this is a general overview of the resolution, and it is essential to consult with legal and financial professionals for specific guidance.
