Dubai Introduces Free Zone Mainland Operating Permit to Boost Business Expansion

Dubai has introduced a landmark policy allowing free zone companies to operate within the mainland through the new Free Zone Mainland Operating Permit. Launched by the Dubai Business Registration and Licensing Corporation (DBLC) under the Dubai Department of Economy and Tourism (DET), this initiative aims to enhance business flexibility, simplify operations, and encourage integration across the emirate. Companies holding a Dubai Unified License (DUL) are eligible to apply, and the entire process is fully digital via the Invest in Dubai platform, making it particularly accessible for SMEs and startups. The permit is valid for six months and can be renewed at a cost of AED 5,000 every six months.

Initially, the permit covers non-regulated sectors such as technology, consultancy, design, professional services, and trading, with plans to extend it to regulated sectors in the future. Businesses operating under this permit are subject to a 9% corporate tax on revenues generated from mainland operations and must maintain separate financial records in line with Federal Tax Authority (FTA) regulations. The permit also allows companies to utilize their existing staff for mainland operations, eliminating the need for additional recruitment.

The Free Zone Mainland Operating Permit is expected to benefit over 10,000 active free zone companies, enabling them to expand into local trading, integrate with domestic supply chains, and access government tenders and contracts that were previously reserved for mainland-licensed entities. By simplifying cross-jurisdiction operations, the permit aligns with Dubai’s broader economic strategy to double the city’s economy by 2033. It also strengthens Dubai’s position as a global investment hub by reducing barriers to entry, increasing operational flexibility, and enhancing transparency for companies of all sizes. Businesses interested in applying for the permit can find more details on the Invest in Dubai platform