The Dubai Business Registration and Licensing Corporation (DBLC) — operating under the Dubai Department of Economy and Tourism (DET) has revealed a free zone mainland operating permit.
Moreover, this new regulatory tool allows free zone companies to legally perform business on the mainland under the structured permit framework. However, it is a landmark move to deepen economic integration between the Dubai Free Zone and the Dubai mainland.
What the Free Zone Mainland Operating Permit Means: Benefits & Scope
The permit is intended to ease cross-jurisdictional operation. Hence, it has opened cost-efficient pathways for free zone entities to engage in the domestic trade, tap into government contracts, and integrate with local supply chains. Moreover, it covers non-regulated activities in its first phase. Below is the list of those activities:
- Technology
- Consultancy
- Design
- Professional services
- Trading
There are also plans to extend the permit coverage into the regulated sectors at a later stage.
Take a look at the key terms of the permit:
| Feature | Detail |
| Validity | 6 months, renewable every 6 months |
| Fee | AED 5,000 per term |
| Tax liability | 9% corporate tax on revenues derived from mainland activities |
| Financial recordkeeping | Must maintain separate books for mainland operations |
| Workforce flexibility | Companies may use existing free zone staff in mainland activity (no need to recruit new personnel) |
Projected Impact & Strategic Vision
DET and DBLC predict that the permit could boost cross-jurisdictional activity in Dubai by 15 to 20 percent in its first year. Moreover, the initiative is expected to directly benefit more than 10,000 active free zone firms by providing them with greater access to mainland markets, government tenders, and domestic trading opportunities formerly reserved for mainland-licensed businesses.
Ahmad Khalifa AlQaizi AlFalasi, CEO of DBLC, said, “We are enhancing ease of doing business and opening new avenues for growth, including domestic trading and government tenders. Plus, this initiative empowers its dedication to progressive and business-friendly policies”.
Dr. Juma Al Matrooshi, Assistant Secretary-General at the Dubai Free Zones Council, said that the permit supports the appeal of Dubai as an investment destination and complements the advantages that the free zones offer.
This move aligns with the Dubai Economic Agenda (D33). However, this campaign aspires to double the size of the economy of Dubai by 2033. Moreover, the permit also creates prior regulatory reforms, like the Dubai Unified Licence (DUL), to streamline business setup across zones.
How to Apply & Next Steps
Eligible entities are companies already holding a Dubai Unified Licence (DUL) within any free zone. Moreover, applications are handled digitally via the Invest in Dubai (IID) platform. So, it makes the process entirely online and efficient, especially for SMEs, startups, and incorporation agents.
As per the DET, full details, eligibility criteria, and application guidance are accessible on the official Invest in Dubai website.
Key Takeaways
- Access enabled: Free zone companies can now operate in Dubai’s mainland under a new permit regime.
- Affordability & simplicity: AED 5,000 for six months. However, there is also the option of renewals. Plus, the use of existing staff could reduce overheads.
- Regulatory clarity: 9% tax and separate bookkeeping ensure transparency and compliance.
- Economic stimulus: The move is expected to lift cross-zone activity by up to 20% and unlock greater participation in government contracts.
- Digital application: An entirely online process through the Invest in Dubai platform boosts ease of uptake.
The Free Zone Mainland Operating Permit reflects a strategic pivot, as Dubai charts its path toward global competitiveness and investor readiness. Thus, this new regulation could divide and empower businesses to scale more flexibly. In short, this new business rule will start a new era of businesses in Dubai.
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