In a groundbreaking move, the Dubai government has permitted free zone companies to conduct business throughout the United Arab Emirates, eliminating previous operational constraints.

This decision paves the way for companies to expand beyond designated free zones and directly engage with clients nationwide.

According to the latest announcement, any company holding a free zone license can now apply for a permit from the Dubai Department of Economy and Tourism (DET) to operate outside its designated zone.

Previously, such companies were restricted to conducting business only within their specific free zones or outside the UAE.

Dubai Crown Prince Sheikh Hamdan bin Mohammed’s decision has been widely welcomed.

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Legal expert Kamal Jabbar likened free zone companies to “boats confined to their harbors,” limited in scope despite their growth potential.

“Now, these companies can directly serve their clients nationwide, marking a major business breakthrough,” he said.

Companies wishing to operate outside Dubai will need to obtain a one-year license and permit from the local administration of the respective region, with the option for renewal.

Experts believe this move will make Dubai an even more attractive hub for multinational corporations looking to establish regional headquarters, significantly boosting business activity and investment in the emirate.