Dubai has introduced a new system that allows companies located in free zones to operate in the mainland through a structured permit arrangement. This initiative aims to streamline cross-jurisdiction activities, broaden business prospects, and support the objectives outlined in the Dubai Economic Agenda, D33.
This program, developed by the Dubai Business Registration and Licensing Corporation (DBLC) in partnership with the Dubai Free Zone Council and the Dubai Department of Economy and Tourism (DET), is anticipated to benefit over 10,000 businesses within Dubai’s free zones.
It provides affordable access to local trading, government contracts, and public tenders that were previously limited to companies licensed for mainland operations.
In accordance with the Dubai Executive Council Decision No 11 of 2025, the ‘Free Zone Mainland Operating Permit’ allows qualifying firms with a Dubai Unified Licence (DUL) to submit applications digitally via the Invest in Dubai (IID) platform. The application process is fully online, aimed specifically at startups, small and medium-sized enterprises (SMEs), and incorporation agents seeking easier access to mainland operations.
New permit enhances Dubai’s appeal as a global investment destination
Ahmad Khalifa AlQaizi AlFalasi, the CEO of DBLC, stated that this initiative highlights Dubai’s goal of becoming the most business-friendly city worldwide and signifies effective cooperation between government bodies and free zone organizations.
“By streamlining operations across jurisdictions, we are facilitating the ease of doing business and creating new growth opportunities, ranging from local trading to government tenders,” remarked AlFalasi.
He continued, “This initiative solidifies Dubai’s status as a leader in regulatory innovation and affirms its dedication to progressive, investor-friendly policies in line with the D33 Agenda.”
The DBLC estimates that connecting free zone operations with mainland activities could increase cross-jurisdictional business by 15–20 percent in the first year, enabling free zone companies to integrate into domestic supply chains and obtain substantial government contracts worth billions of dirhams.
Dr. Juma Al Matrooshi, Assistant Secretary General of the Dubai Free Zones Council, expressed that the permit enhances Dubai’s role as a global investment hub while complementing the operational advantages and flexibility that the emirate’s free zones already provide.
“This marks a strategic advancement that boosts Dubai’s allure to international investors and aligns with the D33 Agenda’s objectives,” Al Matrooshi stated. “It will simplify business operations and create new opportunities for companies to leverage Dubai’s vibrant economy,” he added.
Initially, the permit will be available for sectors that are not regulated, such as technology, consulting, design, professional services, and trading, with plans for future expansion into regulated sectors.
The permit is valid for six months and costs Dhs5,000, with the possibility of renewal at the same price. It permits businesses to employ their current staff for mainland operations without needing to hire additional personnel.
Companies operating under this permit will incur a 9 percent corporate tax on revenues generated from mainland activities and must maintain separate financial records in compliance with Federal Tax Authority (FTA) regulations.
This initiative builds upon DET’s larger efforts toward regulatory integration, which includes the rollout of the Dubai Unified Licence (DUL).
Officials have stated that this new framework bolsters Dubai’s global competitiveness by providing flexible, transparent, and investor-friendly options for business growth.
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