Dubai has introduced the Free Zone Mainland Operating Permit, a new initiative that allows free zone companies to operate in the mainland. This structured permit provides firms with access to domestic trading and government contracts previously limited to mainland entities.
What the Permit Means for Businesses
The permit bridges the gap between free zones and the mainland. Companies can now expand their operations without establishing a separate mainland entity. Businesses in sectors like technology, consultancy, design, professional services, and trading are eligible in the initial phase. Plans exist to extend the permit to regulated sectors later.
Dubai’s Department of Economy and Tourism (DET) stated that this move will reduce costs, lower operational risks, and encourage growth for small and large companies alike. Existing staff can be used for mainland operations, eliminating the need for new recruitment.
Permit Details and Costs
The Free Zone Mainland Operating Permit is valid for six months and costs AED 5,000. It is renewable for the same fee. Companies using the permit will be subject to a 9% corporate tax on revenue related to mainland activities. Separate financial records must be maintained to comply with the Federal Tax Authority (FTA).
By ensuring compliance, the permit promotes transparency and regulatory alignment between free zones and mainland operations.
Impact on Free Zone Firms
DET estimates that over 10,000 active free zone firms will benefit from the new permit. The initiative could boost cross-jurisdictional activity in Dubai by 15-20% within the first year.
Companies can now integrate with domestic supply chains, expand local trading, and compete for government tenders worth billions. This opens significant growth opportunities that were previously exclusive to mainland-licensed businesses.
Boosting Dubai’s Business Environment
Ahmad Khalifa AlQaizi AlFalasi, CEO of Dubai Business Registration and Licensing Corporation (DBLC), emphasized that the permit enhances ease of doing business. He noted it will create jobs, support entrepreneurship, and attract global investors.
The initiative reinforces Dubai’s position as a benchmark for regulatory innovation. By allowing free zone firms access to mainland markets, Dubai strengthens its competitive edge while encouraging economic diversification.
How to Apply
Eligible companies must hold a Dubai Unified Licence (DUL). Applications can be submitted digitally through the Invest in Dubai (IID) platform. The process is fully online, making it simple for SMEs, startups, and incorporation agents to gain mainland access quickly.
This digital system streamlines approvals and ensures efficiency, reducing paperwork and wait times for businesses seeking expansion.
Why It Matters for Entrepreneurs
For entrepreneurs and investors, this permit provides a cost-effective path to scale operations. Free zone companies no longer need a separate mainland setup to access local markets.
For firms considering company formation Dubai, this new permit offers flexibility and rapid market entry. It also allows businesses to maintain existing structures while tapping into mainland opportunities.
Conclusion
The Free Zone Mainland Operating Permit is a major step in Dubai’s business strategy. It provides over 10,000 firms access to mainland trading, government contracts, and new growth channels.
This initiative simplifies cross-jurisdiction operations and strengthens Dubai’s position as a global business hub. For businesses planning company formation Dubai, it creates a faster, more efficient route to expand operations and compete in local markets.
For expert assistance with free zone permits, mainland access, and company setup in Dubai, contact AR Associates today.
