Dubai Launches Permit to Link Free Zones with Mainland

Dubai has taken a significant step to connect its free zones with the mainland economy. The Dubai Business Registration and Licensing Corporation (DBLC), together with the Dubai Free Zone Council, has launched the Free Zone Mainland Operating Permit. This initiative allows free zone companies to operate directly in Dubai’s mainland for the first time through a structured permit system.

Simplifying Business Expansion

The initiative, introduced under Dubai Executive Council Decision No. 11 of 2025, aims to remove long-standing barriers for companies seeking mainland operations. The permit provides a cost-effective and low-risk route for businesses to trade locally and bid for government contracts, opportunities previously limited to mainland-licensed firms.

Aligned with Dubai Economic Agenda D33

This milestone aligns with the Dubai Economic Agenda D33, which targets doubling the emirate’s economy by 2033. The agenda focuses on strengthening Dubai’s role as a global hub for investment, trade, and innovation. The permit is expected to enhance economic integration and facilitate business growth across sectors.

Easy Digital Access for Companies

Companies holding a Dubai Unified Licence (DUL) can now apply online through the Invest in Dubai (IID) platform. The fully digital process reduces time and paperwork, benefiting SMEs, startups, and incorporation agents seeking mainland presence. Initially, the permit covers non-regulated sectors such as technology, consultancy, professional services, design, and trading, with plans to expand to regulated industries in future phases.

Affordable and Flexible for Businesses

The permit costs AED 5,000 for six months and is renewable for the same fee. Companies can use their existing staff for mainland activities without hiring additional personnel, reducing operational costs and simplifying business management.

Driving Economic Integration and Growth

Officials estimate the initiative will increase cross-jurisdiction business activity by 15–20% in the first year, benefiting over 10,000 free zone firms. By connecting free zone companies to domestic supply chains and opening access to government tenders worth billions, the permit is expected to create new partnerships and strengthen the emirate’s economic landscape.

Maintaining Transparency and Compliance

Revenues from mainland operations will be subject to a 9% corporate tax, and companies must maintain separate financial records as per Federal Tax Authority (FTA) regulations. This ensures regulatory harmony and boosts investor confidence in Dubai’s business ecosystem.

Enhancing Dubai’s Global Competitiveness

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 seamless expansion between free zones and the mainland, Dubai strengthens its reputation as an international gateway for trade, investment, and entrepreneurship.

Industry experts see this move as a pivotal step in modernizing Dubai’s economic ecosystem. It signals to global companies and entrepreneurs that Dubai is ready to meet future business needs, from supporting startups to enabling multinational expansions.