Post by : Layla Badr
Dubai has introduced a landmark move to bridge its free zones with the mainland economy. The Dubai Business Registration and Licensing Corporation (DBLC), in partnership with the Dubai Free Zone Council, has launched the Free Zone Mainland Operating Permit, enabling free zone companies to do business directly in Dubai’s mainland for the first time under a structured permit system.
The initiative, introduced under Dubai Executive Council Decision No. 11 of 2025, is designed to remove long-standing barriers for companies wanting to expand beyond their free zone boundaries. By simplifying cross-jurisdiction operations, it offers a cost-effective, low-risk route for firms to trade locally and bid for government contracts, opportunities that were previously reserved for mainland-licensed businesses.
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This milestone aligns with the Dubai Economic Agenda D33, which aims to double the size of the emirate’s economy by 2033 and solidify its position as a global hub for innovation, investment, and trade.
Seamless Access to Mainland Opportunities
Eligible companies that hold a Dubai Unified Licence (DUL) can now apply for the new permit online through the Invest in Dubai (IID) platform. The entire process is digital, cutting down time and paperwork for SMEs, startups, and incorporation agents seeking a mainland presence.
The permit is initially open to non-regulated sectors, including technology, consultancy, professional services, design, and trading. Plans are already underway to extend it to regulated industries in future phases.
For businesses, the cost is straightforward: AED 5,000 for six months, renewable for the same amount. Companies can use their existing staff for mainland activities without hiring additional personnel, reducing operational overheads.
Driving Economic Integration
Officials project that the initiative will increase cross-jurisdiction business activity by 15–20% in its first year, benefiting over 10,000 active free zone firms. By connecting free zone companies to domestic supply chains and allowing access to lucrative government tenders worth billions annually, the framework is expected to stimulate new partnerships and create a more integrated economic landscape.
To ensure transparency, revenues from mainland operations will be subject to 9% corporate tax, and companies must keep separate financial records in line with Federal Tax Authority (FTA) requirements. This approach not only boosts investor confidence but also maintains regulatory harmony.
Strengthening Dubai’s Global Competitiveness
The launch of the Free Zone Mainland Operating Permit builds on the success of the Dubai Unified Licence (DUL) and reflects the emirate’s focus on a digital-first, business-friendly environment. By allowing companies to scale seamlessly between free zones and the mainland, Dubai is positioning itself as a benchmark for progressive regulation and ease of doing business.
Industry analysts view this move as a pivotal step in reinforcing Dubai’s reputation as an international gateway for trade and investment. It signals to global corporations and entrepreneurs that the city continues to modernise its economic ecosystem to meet future needs — from supporting startups to facilitating multinational expansions.
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