Dubai Free Zone Mainland Operating Permit

Dubai has once again proven to be a business-friendly destination by allowing free zone companies to operate within the Dubai mainland. The Department of Economy and Tourism (DET) has launched a new Dubai Free Zone Mainland Operating Permit — a move that promises to reshape the business landscape for startups, SMEs, and multinational corporations alike.

This is under the Executive Council Resolution No. (11) of 2025, passed by Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum on March 17th, 2025.

Dubai Free Zone Mainland Operating Permit

Creating A Bridge Between the Free Zone and the Mainland For Smooth Operations

Before this new resolution, companies licensed in various free zones in Dubai were restricted from directly engaging in mainland activities without setting up a separate mainland entity. Now, this new permit removes that major barrier by offering a structured, transparent pathway for cross-jurisdictional operations.

According to Dubai’s Department of Economy and Tourism (DET) initiative, “This move eases cross-jurisdiction operations, opening cost-effective, low-risk pathways for businesses to engage in domestic trading and secure government contracts, and fostering growth for small enterprises and multinationals alike.”

Benefits of the Free Zone Mainland Operating Permit

Can operate in the Dubai Mainland

Without establishing a new company, free zone companies can now legally conduct business within the Dubai mainland.

Access to Government Contracts

Firms can now bid for local tenders and contracts previously limited to mainland-licensed entities.

Cost-Effective Entry

The permit is a budget-friendly option for expanding operations between the mainland and the free zone. It costs you AED 5,000 and is valid for up to six months – renewal is subject to DET approval.

New Staff is Not Required

Companies can utilize their existing employees for mainland operations, avoiding additional recruitment costs.

Boost for Business Growth

The initiative will benefit over 10,000 active free zone firms and increase cross-jurisdictional activity by 15–20% in its first year.

Activities Covered in the Initial Phase

It includes the non-regulated sectors:

Technology
Consultancy
Design
Professional services
Trading

DET also confirmed that the scope will gradually expand to regulated sectors to expand access in the future.

How to Apply for the Free Zone Mainland Operating Permit?

Free zone companies that are eligible and hold a Dubai Unified Licence (DUL) can easily apply online through the Invest in Dubai (IID) platform. This is a digital platform designed to support SMEs, startups, and business consultants in expanding their operations in the Dubai Mainland.

Note: Free Zone companies committing mainland activities under this permit will be subject to 9% corporate tax on revenues earned from those operations. Also, they must maintain separate financial records in compliance with Federal Tax Authority (FTA) regulations to ensure transparency and accountability.

The Free Zone Mainland Operating Permit marks a major milestone in Dubai’s journey as a unified, flexible, and globally competitive business hub. This initiative opens up unprecedented access to the local market for companies already operating in Dubai’s free zones without a full mainland setup. So, it is the exact time for the companies to expand and thrive under Dubai’s progressive economic vision.

Contact Booming Bytes to know more about the permit and check whether it works for your business activity or not. We help you with all the procedures, and you can simply expand your business in the Dubai Mainland.

Source: Khaleej Times