Dubai has unveiled a new initiative that will reshape how businesses operate across jurisdictions within the emirate. The Free Zone Mainland Operating Permit, launched by the Department of Economy and Tourism (DET), allows companies based in free zones to conduct commercial activities on the mainland under a structured, six-month renewable system.
The move marks a major milestone in Dubai’s ongoing efforts to strengthen its business environment and encourage greater economic integration between its free zones and mainland economy.
By removing operational barriers and simplifying regulatory procedures, the new framework enables free zone companies to expand their reach into domestic markets, secure local contracts, and participate in government tenders.
“This move eases cross-jurisdiction operations, opening cost-effective, low-risk pathways for businesses to engage in domestic trading and secure government contracts, fostering growth for small enterprises and multinationals alike,” DET said in a statement announcing the launch.
The permit, initially limited to non-regulated sectors, will cover industries such as technology, consultancy, professional services, design, and trading. DET confirmed that regulated sectors will be included in later phases once the system matures.
The Free Zone Mainland Operating Permit is valid for six months and costs Dh5,000, renewable for the same duration and fee. Companies using the permit will be required to pay 9% corporate tax on revenues generated from mainland activities and maintain separate financial records as per the Federal Tax Authority (FTA)’s standards.
This requirement aims to uphold financial transparency while ensuring fair taxation practices across jurisdictions.
DET clarified that firms will be able to use their existing employees for mainland activities without needing to hire new staff, offering businesses greater flexibility and efficiency. This provision is expected to be particularly advantageous for startups and SMEs seeking cost-effective growth options.
By bridging the operational gap between free zone and mainland entities, DET expects the initiative to boost cross-jurisdictional business activity in Dubai by 15–20% within the first year.
More than 10,000 active free zone firms stand to benefit from the program, unlocking access to billions of dirhams’ worth of local trade opportunities and government tenders that were previously restricted to mainland-licensed companies.
Ahmad Khalifa AlQaizi AlFalasi, CEO of Dubai Business Registration and Licensing at DET, said the new permit is part of Dubai’s broader strategy to enhance competitiveness and ease of doing business. “We are enhancing ease of doing business while opening new avenues for growth, from domestic trading to government tenders,” AlFalasi said.
Experts note that the initiative supports Dubai’s economic diversification goals, reinforcing its status as a global hub for innovation, trade, and investment.
By encouraging free zone firms to operate seamlessly within the domestic market, the emirate is expected to attract more regional and international investors seeking flexibility and growth within the UAE’s robust regulatory framework.
As Dubai continues to expand its business ecosystem, the Free Zone Mainland Operating Permit represents a progressive step toward a unified, transparent, and dynamic economic model — one designed to sustain long-term growth and global competitiveness.