Dubai has introduced a fresh regulatory framework permitting free zone companies to engage in mainland activities through a structured permitting process. This initiative aims to facilitate operations across jurisdictions, broaden business prospects, and align with the objectives of the Dubai Economic Agenda, known as D33.
Unveiled by the Dubai Business Registration and Licensing Corporation (DBLC) under the Dubai Department of Economy and Tourism (DET) and in partnership with the Dubai Free Zone Council, the initiative is anticipated to assist over 10,000 companies based in Dubai’s free zones.
The new framework provides affordable access to domestic trading, government contracts, and public tenders that were previously exclusive to firms licensed on the mainland.
Formulated under Dubai Executive Council Decision No 11 of 2025, the ‘Free Zone Mainland Operating Permit’ enables eligible free zone enterprises with a Dubai Unified License (DUL) to apply digitally via the Invest in Dubai (IID) platform. The entire process is conducted online, targeting startups, small to medium-sized enterprises (SMEs), and incorporation agents looking for easier access to the mainland.
Free Zone Mainland Operating Permit Enhances Dubai’s Appeal as a Global Investment Destination
Ahmad Khalifa AlQaizi AlFalasi, the CEO of DBLC, noted that this initiative exemplifies Dubai’s goal to become the most business-friendly city globally and highlights collaboration between governmental and free zone organizations.
“By streamlining operations across jurisdictions, we are improving the business climate while creating new avenues for development, including domestic trading and government contracts,” stated AlFalasi.
He further remarked, “This initiative solidifies Dubai’s status as a standard for regulatory advancement and emphasizes its dedication to proactive, business-oriented policies in alignment with the D33 Agenda.”
According to the DBLC, creating a connection between free zone and mainland operations could enhance cross-jurisdictional activities by 15–20 percent in the initial year, thus allowing free zone businesses to integrate into domestic supply chains and gain access to substantial government contracts.
Dr. Juma Al Matrooshi, Assistant Secretary General of the Dubai Free Zones Council, stated that the permit bolsters Dubai’s status as a global investment hub and complements the operational flexibility and sectoral benefits provided by the emirate’s free zones.
“This represents a strategic advancement that increases Dubai’s appeal to foreign investment and aligns with the goals of the D33 Agenda,” Al Matrooshi remarked. “It will simplify operational processes and create new opportunities for companies to leverage Dubai’s vibrant economy,” he added.
Initially, the permit applies to non-regulated sectors such as technology, consulting, design, professional services, and trade, with plans to extend it to regulated industries in the future.
The permit will be valid for six months at a fee of Dhs5,000, with the option to renew at the same cost. It allows businesses to utilize their current employees for mainland operations without the need for additional hiring.
Companies operating in the mainland under this permit will be subject to a 9 percent corporate tax on revenues derived from mainland activities and are required to keep separate financial records in compliance with the Federal Tax Authority (FTA) standards.
This initiative is part of DET’s extensive efforts for regulatory integration, following the establishment of the Dubai Unified License (DUL).
Officials indicated that this new framework enhances Dubai’s global competitiveness by providing flexible, transparent, and investment-friendly options for business expansion.