Businesses in Dubai’s free zones can now trade more easily on the mainland, thanks to a new Free Zone Mainland Operating Permit announced on Wednesday by Dubai’s Department of Economy and Tourism (DET).
The move is designed to simplify and make it more cost-effective for companies to operate across jurisdictions, providing them with access to domestic trading opportunities and government contracts, previously available only to mainland-licensed firms.
“This initiative cements Dubai’s position as a benchmark for regulatory innovation,” said Ahmad Khalifa AlQaizi AlFalasi, CEO of Dubai Business Registration and Licensing Corporation. “We’re enhancing ease of doing business and opening new avenues for growth, from domestic trading to government tenders.”
What the Permit Offers
- Cross-border flexibility: Free zone companies can now engage in mainland activities without setting up a separate mainland entity.
- Low-cost entry: The permit costs Dh5,000 for six months and is renewable for the same fee.
- Talent mobility: Firms can use their existing staff for mainland operations without hiring additional employees.
- Tax compliance: Revenue earned from mainland activities will be subject to the 9% corporate tax, with companies required to maintain separate financial records as per Federal Tax Authority (FTA) rules.
Who Can Apply
The first phase of the permit covers non-regulated sectors, such as:
- Technology and IT services
- Consultancy and design
- Professional services
- Trading
Plans are in place to extend the permit to regulated sectors in the future.
Eligible businesses must have a Dubai Unified Licence (DUL). They can apply online via the Invest in Dubai (IID) platform, ensuring a quick and hassle-free process for SMEs, startups, and larger enterprises.
Big Boost for Businesses
DET expects the initiative to increase cross-jurisdiction activity by 15–20% in its first year, benefiting over 10,000 active free zone firms.
By enabling free zone companies to integrate more closely with domestic supply chains, the permit opens doors to billions of dirhams worth of government tenders and contracts, creating new opportunities for growth, innovation, and job creation.