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Dubai launches permit allowing free zone companies to operate on mainland

The initiative could boost cross-jurisdictional activity by 15–20% in its first year, benefiting more than 10,000 active free zone firms

Dubai launches permit allowing free zone companies to operate on mainland
[Source photo: Krishna Prasad/Fast Company Middle East]

Dubai Business Registration and Licensing Corporation (DBLC), part of the Dubai Department of Economy and Tourism (DET), in partnership with the Dubai Free Zone Council, has launched the Free Zone Mainland Operating Permit, allowing free zone companies to operate on Dubai’s mainland through a structured system.

The permit offers a cost-efficient, low-risk pathway for cross-jurisdictional business, enabling participation in domestic trade and government contracts. 

Introduced under Dubai Executive Council Decision No. 11 of 2025, it aligns with the Dubai Economic Agenda D33, which seeks to double the emirate’s economy by 2033. Free zone companies with a Dubai Unified Licence (DUL) can apply digitally via the Invest in Dubai platform.

Officials said the initiative could boost cross-jurisdictional activity by 15–20% in its first year, benefiting more than 10,000 active free zone firms, while opening access to supply chains and government tenders previously restricted to mainland entities.

Ahmad Khalifa Al Qaizi Al Falasi, CEO of DBLC, said the framework underscores Dubai’s commitment to regulatory modernization and investor-friendly reforms. He noted that easing cross-jurisdictional operations would improve efficiency and open new opportunities in trade and government tenders, reinforcing Dubai’s reputation for regulatory innovation.

Dr. Juma Al Matrooshi, Assistant Secretary-General of the Dubai Free Zones Council, said the permit strengthens Dubai’s business ecosystem and investment appeal, complementing free zones’ competitive advantages while advancing the D33 agenda’s goal of simplifying operations and driving expansion.

In its first phase, the permit applies to non-regulated activities such as technology, consultancy, design, professional services, and trading, with plans to expand into regulated sectors. Valid for six months and renewable for the same period at a fee of $1,361, it offers a cost-efficient entry point. 

Companies will be subject to a nine percent corporate tax on related revenues and must keep separate financial records under Federal Tax Authority rules, while existing staff can operate under the permit without new hires.

Building on the Dubai Unified Licence, the initiative is part of DET’s strategy to integrate services and streamline regulation, enabling free zone companies to scale more flexibly while strengthening Dubai’s position as a global hub for innovation, talent, and sustainable growth.

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