Dubai's Strategic Expansion
Dubai has long been a dynamic hub for business and innovation, consistently evolving to meet the needs of a global market. The recent landmark decision by the Dubai government, allowing free zone companies to establish branches in mainland Dubai with a license from the Department of Economy and Tourism (DET), marks a significant step forward. This initiative is poised to provide free zone businesses with unprecedented operational flexibility and the opportunity to tap into a larger customer base within mainland Dubai.
Understanding the Shift
Previously, while UAE tax law permitted free zone firms to operate branches in the mainland, the scope of permissible activities was limited. Executive Resolution No. 11/2025 effectively changes this landscape, granting broader approval for free zone companies in Dubai to set up shop in the mainland, subject to obtaining the necessary approvals. This pivotal change enables businesses in free zones to apply for a DET license to establish a branch in mainland Dubai or seek permits for specific activities, streamlining the expansion process.
The Benefits of Mainland Expansion.
- Expanded Market Reach: Free zone companies can now access the extensive and diverse mainland Dubai market, significantly broadening their customer base and unlocking substantial growth potential.
- Enhanced Operational Flexibility: By removing the necessity to establish separate mainland entities, the resolution simplifies operations, reduces overhead costs, and improves overall efficiency.
- Stimulated Economic Growth: This initiative is expected to catalyze economic activity across mainland Dubai, attracting increased investment, fostering innovation, and generating new opportunities across various sectors.
- Increased Competitiveness: By breaking down traditional barriers between free zones and the mainland, Dubai is reinforcing its position as a leading global business hub, promoting a more competitive and integrated economic environment.
TFAB: Your Trusted Partner in Navigating Expansion
As businesses explore these new opportunities, the expertise of a trusted advisor is crucial. TFAB, a leading auditing and accounting firm, is well-equipped to guide free zone companies through the complexities of mainland expansion. Here’s how TFAB can assist:
- Navigating Regulatory Compliance: TFAB can provide expert guidance on the legal and regulatory requirements associated with establishing a mainland presence, ensuring full compliance with DET regulations and other applicable laws.
- Financial Structuring and Planning: TFAB can assist businesses in optimizing their financial structure for mainland operations, including tax planning, accounting system setup, and financial forecasting.
- Risk Management: TFAB can help identify and mitigate potential risks associated with expanding into the mainland, ensuring a smooth and successful transition.
- Auditing and Assurance: TFAB can provide comprehensive auditing and assurance services to ensure the accuracy and reliability of financial reporting for both free zone and mainland operation.
- VAT and Corporate Tax Advisory: TFAB’s tax experts can offer valuable advice on VAT and corporate tax implications, helping businesses optimize their tax position and ensure compliance with UAE tax laws
With TFAB as your trusted partner, free zone companies can confidently capitalize on the opportunities presented by Dubai’s new resolution, achieving seamless expansion and sustainable growth in the mainland market.