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Dubai Crown Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum issued a resolution to allow businesses domiciled in freezones to expand operations anywhere in Dubai, making it easier for them to scale operations across the emirate, according to a Dubai Media Office statement. The new resolution does not apply to DIFC-registered financial institutions, and will be effective from its publication in the official gazette.
Establishments with a freezone license will be able to operate outside the freezone after obtaining the necessary permits from the Dubai Department of Economy and Tourism (DET) and from the authorities in the planned location. The DET will offer businesses a one-year renewable license for establishing a branch in Dubai outside of the freezone, or more branches alongside their headquarters in the freezone. Firms will have to have separate financial records for their operations inside and outside the freezone.
Companies will also be able to operate outside of Dubai, provided they secure the relevant licenses and conform to regulatory requirements of other emirates. DET is set to issue a list of permitted activities that firms can engage with depending on their location, and they must comply with both federal and local laws.
The rationale: The resolution is set to enable businesses to expand more easily into mainland Dubai, and comes within the D33 Agenda to promote a business-friendly regulatory environment in the emirate.
The development “unlocks new opportunities for business growth, investment, and innovation,” PWC Middle East analyst Mahmood Abdulla said in a post on LinkedIn, adding that the new regulation can help boost investment and economic growth, and strengthen Dubai’s position as a global business center.
SOUND SMART- Several freezones in Dubai, including Dubai Design District (D3), Dubai Airport Free Zone (DAFZA), and DIFC, already have dual licensing regimes in place through agreements with the Department of Economic Development. The new rule expands these regimes across 26 freezones in the emirate, and allows for a more streamlined licensing process.
