Dubai introduces free zone mainland permit to boost local business trade

Always looking for ways to make it easier for companies to grow, Dubai has introduced a new initiative to help free zone businesses expand into the mainland. The Free Zone Mainland Operating Permit allows eligible companies to trade locally and participate in government contracts without needing a full mainland license.

Eligible companies with a Dubai Unified Licence can apply for the permit entirely online via the Invest in Dubai platform. The permit is valid for six months at a cost of AED5,000 and can be renewed for the same fee, providing an affordable way for businesses to extend their operations.

By bridging free zone and mainland operations, Dubai expects cross-jurisdictional activity to grow by 15-20% in the first year. Over 10,000 free zone companies can now expand into local markets, integrate with domestic supply chains, and access government contracts worth billions of dirhams opportunities previously reserved for mainland-licensed companies.

Initially, the permit covers non-regulated sectors such as technology, consultancy, design, professional services, and trading. Businesses using the permit must pay 9% corporate tax on related revenues and maintain separate financial records as required by the Federal Tax Authority. Companies can also use their existing staff for mainland operations without hiring new employees.

Aligned with Dubai’s Economic Agenda, D33, the permit simplifies business operations, opens new growth opportunities, and reinforces Dubai’s position as a global hub for investment, innovation, and business expansion.

A shift in the narrative

This new permit sends a strong signal that Dubai is committed to creating a more investor-friendly environment. By bridging free zone and mainland operations, it opens new opportunities for growth, local trade, and access to government contracts while keeping costs and processes straightforward. 

For investors and businesses looking to expand, diversify, or strengthen their presence in Dubai, the Free Zone Mainland Operating Permit offers a practical, efficient, and cost-effective pathway to maximize returns and scale operations confidently.

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