New free zone mainland operating permit to grow Dubai businesses

Dubai: Dubai has introduced a Free Zone Mainland Operating Permit, a new initiative that allows companies based in free zones to conduct business within the emirate’s mainland. The permit aims to simplify cross-jurisdiction operations and expand opportunities for more than 10,000 existing free zone firms to access local markets and government contracts.

The framework, launched by the Dubai Business Registration and Licensing Corporation (DBLC) under the Dubai Department of Economy and Tourism (DET) in partnership with the Dubai Free Zone Council, supports Dubai’s goal of creating a seamless, investor-friendly business environment.

New cross-jurisdiction system

The permit, introduced under Dubai Executive Council Decision No. 11 of 2025, lets eligible free zone companies holding a Dubai Unified Licence (DUL) apply digitally via the Invest in Dubai (IID) platform. The process is fully online and designed for efficiency, particularly for SMEs, startups, and incorporation agents seeking mainland access.

The new permit will enable companies to trade domestically, integrate with local supply chains, and compete for government tenders, previously restricted to mainland-licensed entities. Early projections suggest a 15–20% increase in cross-jurisdiction activity within the first year.

Driving Dubai’s economic vision

Ahmad Khalifa AlQaizi AlFalasi, CEO of DBLC, said the initiative reflects Dubai’s ambition to become the world’s most business-ready city.

“By simplifying cross-jurisdiction operations, we’re strengthening Dubai’s competitiveness and enabling investors to grow with confidence,” he said. “This initiative supports the D33 Agenda’s vision to double the size of Dubai’s economy and build a globally competitive, digital-first environment.”

Dr. Juma Al Matrooshi, Assistant Secretary General at the Dubai Free Zones Council, said the new permit enhances Dubai’s appeal for international investors. “It supports Dubai’s world-class business ecosystem by combining the flexibility of free zones with the opportunities of mainland operations,” he said.

Permit terms and scope

In its initial phase, the framework covers non-regulated sectors such as technology, consultancy, design, professional services, and trading, with plans to expand to regulated industries.

• The permit costs Dh5,000, valid for six months and renewable for the same fee.

• Companies must maintain separate financial records and pay 9% corporate tax on mainland-related revenues, in line with Federal Tax Authority rules.

• Businesses can deploy their existing free zone staff for mainland operations, eliminating the need for new hires.

Strengthening Dubai’s position

The Free Zone Mainland Operating Permit builds on previous regulatory reforms, including the Dubai Unified Licence, to streamline business registration and compliance.

It also reinforces Dubai’s standing as a global investment hub by enhancing transparency, reducing barriers to entry, and improving operational flexibility for companies of all sizes.

Officials said the initiative will boost investor confidence, create new trade opportunities, and help drive long-term growth across key sectors — in line with the Dubai Economic Agenda, D33.