Dubai: A new initiative has been unveiled in Dubai known as Free Zone Mainland Operating Permit which enables companies located in free zones to operate in the mainland of the emirate. The intention of the permit is to make cross-jurisdiction operation easy and to increase opportunities to more than 10,000 of the already existing free zone firms to reach the local markets and government contracts.

The framework, which has been initiated in the collaboration with Dubai Free Zone Council, through the Dubai Department of Economy and Tourism (DET), under the Business Registration and licensing corporation, is aimed at facilitating a smooth and easy business environment in the city of Dubai.

New trans-jurisdiction system.

However, the permit, adopted under the Dubai Executive Council Decision No. 11 of 2025 allows the free zone companies that possess a Dubai Unified Licence (DUL) to apply digitally through the Invest in Dubai (IID) platform. It is an entirely online process that is efficient, especially to the SMEs, start-ups, and incorporation agents who would want to access the mainland.

The new permit will allow business to trade in the local market, merge with the local supply chains, and secure government tenders which were previously restricted to mainland licensed business. It is estimated that it will rise by 15-20 percent in the cross-jurisdiction activity in the first year.

Giving momentum to the Dubai economic vision.

The CEO of the DBLC, Ahmad Khalifa Al Qaizi AlFalasi, indicated that the initiative is part of the desire by Dubai to be the city that is most ready in the world to conduct businesses.

We are making cross-jurisdiction operations increasingly easy and are doing this to enhance the competitiveness of Dubai and allowing its investors to expand with confidence, he said. The move is in line with the vision of D33 Agenda to grow the size of the Dubai economy by 2x and create a digital-first, globally competitive setting.

According to the remarks of Dr. Juma Al Matrooshi, the Assistant Secretary General of the Dubai Free Zones Council, the new permit will increase the attractiveness of Dubai to international investors. It facilitates the global business environment in Dubai by providing the adaptability of the free zones with the prospects of the mainland operations, he said.

Permit terms and scope

The framework is yet to be extended to regulated industries but in its first stage, it includes the non-regulated industry like technology, consultancy, design, professional services, and trading.

The permit is Dh5,000, and it is valid after six months, and renewable at the same price.

According to the Federal Tax Authority regulations, companies are obliged to keep their own financial accounts and pay 9 percent corporate tax on their mainland-based revenues.

Businesses can use their current free zone employees to work on the main land without necessarily engaging new employees.

Empowerment of the city of Dubai.

The Free Zone Mainland Operating Permit is based on the past regulatory reforms such as the Dubai Unified licence to simplify business registration and compliance.

It also strengthens the position of Dubai as an international investment center by increasing transparency, minimizing entry barriers and increasing flexibility of operations by companies of all size.

According to the officials, the initiative will increase the confidence of investors, create new trading opportunities, and contribute to the long-term development of several main areas, according to the Dubai Economic Agenda, D33.

Regulatory Foundation

The framework was established under Dubai Executive Council Decision No. 11 of 2025 and is administered by the Dubai Department of Economy and Tourism (DET) in partnership with the Dubai Free Zone Council.

Companies seeking to use this permit must ensure compliance with mainland business rules and tax regulations.

This new permit marks a major milestone in Dubai’s push for business-friendly reforms, integrating free zone strengths with robust mainland market access.