Introduced under the Dubai Executive Council Decision No. 11 of 2025, Dubai Business Registration and Licensing Corporation (DBLC), part of the Dubai Department of Economy and Tourism (DET), in collaboration with the Dubai Free Zone Council, has launched the Free Zone Mainland Operating Permit, a new framework that enables free zone companies to operate in Dubai’s mainland through a structured permit system. 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.

By bridging free zone and mainland operations, the initiative is projected to boost cross-jurisdictional activity by 15-20% in the first year, benefitting over 10,000 active free zone firms and allowing companies to expand into local trading, integrate with domestic supply chains, and unlock access to government tenders and contracts worth billions annually – opportunities that were previously reserved for mainland-licensed entities.

In its initial phase, the framework covers non-regulated activities including technology, consultancy, design, professional services, and trading, with plans to extend to regulated sectors. The Free Zone Mainland Operating Permit is valid for six months at a cost of AED5,000 renewable for the same fee every six months, offering a cost-effective entry point. Free zone companies engaging in mainland activities will be subject to 9% corporate tax on related revenues and must maintain separate financial records in line with Federal Tax Authority (FTA) requirements, promoting transparency and regulatory harmony. Moreover, businesses that avail this permit can use their existing staff in mainland operations, without the need to recruit new ones.