Dubai unveils new permit allowing free zone firms to operate in mainland
This initiative will boost business activity by up to 20% in first year
DUBAI – Dubai Business Registration and Licensing Corporation (DBLC), part of the Dubai Department of Economy and Tourism (DET), in collaboration with the Dubai Free Zone Council, has announced the launch of the Free Zone Mainland Operating Permit – a new framework that allows free zone companies to operate across Dubai’s mainland through a regulated permit system.
The move simplifies cross-jurisdiction operations, enabling businesses to engage in domestic trading, participate in government tenders, and explore low-risk, cost-effective pathways to expand their reach. Designed for both multinational corporations and small enterprises, the initiative represents another milestone in Dubai’s drive to modernise regulation and enhance ease of doing business.
Introduced under the Dubai Executive Council Decision No. 11 of 2025, the initiative supports the goals of the Dubai Economic Agenda D33, which aims to double the size of the emirate’s economy by 2033 and further consolidate its position as a global hub for business and innovation. Eligible companies holding a Dubai Unified Licence (DUL) can apply for the permit digitally via the Invest in Dubai (IID) platform, with the entire process conducted online for efficiency.
What does the new permit offer?
Ahmad Khalifa AlQaizi AlFalasi, CEO of Dubai Business Registration and Licensing Corporation (DBLC), said the launch of the permit reaffirms Dubai’s vision to become the world’s most business-ready city. “This initiative is a testament to the strength of collaboration between government and free zone stakeholders in streamlining Dubai’s investor journey,” he said. “By simplifying cross-jurisdictional operations, we are opening new avenues for growth, from domestic trading to government tenders, while reinforcing Dubai’s reputation for regulatory innovation and business-friendly policies.”
The Free Zone Mainland Operating Permit bridges free zone and mainland operations, creating a unified investment landscape. It is projected to increase cross-jurisdiction activity by 15–20% in its first year, benefiting more than 10,000 existing free zone firms. By allowing these entities to expand into local trading and access government contracts worth billions of dirhams annually, the framework strengthens Dubai’s competitiveness and supports broader economic diversification.
How will it benefit companies?
Dr Juma Al Matrooshi, Assistant Secretary General at the Dubai Free Zones Council, described the permit as a strategic step that enhances Dubai’s attractiveness to investors. “This initiative complements the distinctive advantages offered by Dubai’s free zones, such as operational flexibility, service excellence, and sector-specific ecosystems,” he said. “It is closely aligned with the objectives of the D33 Agenda, as it simplifies business operations and opens new pathways for companies to benefit from Dubai’s dynamic economy.”
In its first phase, the permit applies to non-regulated sectors such as technology, consultancy, design, professional services, and trading, with plans to include regulated activities later. The permit costs Dh5,000 for six months and can be renewed for the same fee. Companies using it will be subject to a 9% corporate tax on revenues generated from mainland activities and must maintain separate financial records as required by the Federal Tax Authority (FTA), ensuring transparency and compliance.
Importantly, free zone companies can deploy their existing workforce for mainland operations without hiring additional staff, making it an attractive and cost-efficient route for expansion. The framework’s design aims to minimise administrative burden while maintaining robust regulatory oversight.
When will businesses feel the impact?
The new framework builds on Dubai’s broader efforts to unify licensing and streamline business regulations, following the successful rollout of the Dubai Unified Licence (DUL). It aligns with DET’s strategy to integrate services and accelerate economic reforms that attract global investors and support innovation-driven enterprises.
Authorities expect to see immediate uptake from small and medium-sized enterprises (SMEs), startups, and international firms that wish to participate in mainland contracts and diversify their operations without fully relocating. The initiative also sends a clear signal to global markets that Dubai continues to evolve as an integrated, investor-friendly destination focused on digital transformation, sustainability, and competitiveness.