Dubai Launches Permit for Free Zone Firms in Mainland

Dubai has introduced a new Free Zone Mainland Operating Permit that allows companies registered in free zones to legally conduct business in the emirate’s mainland. The initiative, launched by the Dubai Department of Economy and Tourism (DET), is designed to make cross-jurisdiction operations smoother and more cost-effective for businesses of all sizes.

The new permit enables free zone companies to participate in domestic trading, secure government contracts, and expand their operations without establishing a separate mainland entity. It aims to promote growth for startups, SMEs, and multinational firms while reinforcing Dubai’s position as a leading global business hub.

In its first phase, the permit applies to non-regulated activities such as technology, consultancy, design, professional services, and trading. Authorities plan to expand coverage to regulated sectors in later stages.

The permit is valid for six months at a fee of Dh5,000, renewable for the same amount. Companies operating under this permit will be subject to a 9% corporate tax on mainland-related revenues and must maintain separate financial records in compliance with Federal Tax Authority (FTA) requirements. Additionally, firms can use their existing staff for mainland operations, removing the need for new hiring.

DET estimates that over 10,000 free zone firms could benefit from this reform, with cross-jurisdictional activity in Dubai expected to rise by 15–20% in the first year. The policy opens access to local supply chains, government tenders, and contracts worth billions annually — previously reserved for mainland-licensed businesses.

Ahmad Khalifa Al Qaizi Al Falasi, CEO of the Dubai Business Registration and Licensing Corporation (DBLC), said the initiative enhances ease of doing business and drives Dubai’s competitiveness as a global investment destination.

Eligible companies holding a Dubai Unified License (DUL) can apply online through the Invest in Dubai (IID) platform, where the entire process is digital and user-friendly for startups and incorporation agents. More information is available on the Invest in Dubai website.