Dubai’s new free zone mainland operating permit: Here’s what you need to know

Dubai has launched a new framework that allows free zone companies to operate in the mainland under a structured permit system, in a move aimed at simplifying cross-jurisdiction operations, expanding business opportunities, and supporting the goals of the Dubai Economic Agenda, D33.

The initiative, introduced by the Dubai Business Registration and Licensing Corporation (DBLC) under the Dubai Department of Economy and Tourism (DET) in collaboration with the Dubai Free Zone Council, is expected to benefit more than 10,000 companies operating in Dubai’s free zones.

It offers cost-effective access to domestic trading, government contracts, and public tenders previously restricted to mainland-licensed firms.

Launched under the Dubai Executive Council Decision No 11 of 2025, the ‘Free Zone Mainland Operating Permit’ enables eligible free zone firms holding a Dubai Unified Licence (DUL) to apply digitally through the Invest in Dubai (IID) platform. The process is fully online, targeting startups, SMEs, and incorporation agents seeking streamlined mainland access.

Free zone mainland operating permit strengthens Dubai’s position as a global investment hub

Ahmad Khalifa AlQaizi AlFalasi, CEO of DBLC, said the initiative underscores Dubai’s ambition to become the world’s most business-ready city and reflects close collaboration between government and free zone entities.

“By simplifying cross-jurisdictional operations, we are enhancing ease of doing business while opening new avenues for growth, from domestic trading to government tenders,” AlFalasi said.

He added: “This initiative cements Dubai’s position as a benchmark for regulatory innovation and reinforces its commitment to progressive, business-friendly policies in line with the D33 Agenda.”

According to DBLC, bridging free zone and mainland operations could boost cross-jurisdictional activity by 15–20 per cent in the first year, enabling free zone companies to integrate with domestic supply chains and access billions of dirhams in government contracts.

Dr Juma Al Matrooshi, Assistant Secretary General of the Dubai Free Zones Council, said the permit strengthens Dubai’s position as a global investment hub and complements the operational flexibility and sectoral advantages already offered by the emirate’s free zones.

“This represents a strategic step that enhances Dubai’s attractiveness to foreign investment and supports the objectives of the D33 Agenda,” Al Matrooshi said. “It will simplify operations and open new pathways for companies to benefit from Dubai’s dynamic economy, ”Al Matrooshi added.

In its first phase, the permit applies to non-regulated sectors such as technology, consultancy, design, professional services, and trading, with future plans to expand to regulated industries.

The permit is valid for six months at a cost of Dhs5,000, renewable for the same fee, and allows businesses to use their existing staff for mainland activities without additional recruitment.

Free zone companies operating under the permit will be subject to a 9 per cent corporate tax on mainland-related revenues and must maintain separate financial records in line with Federal Tax Authority (FTA) requirements.

The initiative builds on DET’s broader regulatory integration efforts following the introduction of the Dubai Unified Licence (DUL).

Officials said the new framework reinforces Dubai’s global competitiveness by providing flexible, transparent, and investor-friendly pathways for business expansion.

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