Dubai Opens Mainland Doors to Free Zone Firms with New Permit New operating permit lets 10,000 free-zone companies access domestic trade, government contracts.

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The Dubai government has launched a new regulatory instrument that allows companies based in free zones to operate on the mainland, enabling expanded market access and cross-jurisdiction business. The Free Zone Mainland Operating Permit, introduced under Executive Council Decision No. 11 of 2025, marks a significant shift in the emirate's economic strategy.

Under the new framework, free-zone firms holding a Dubai Unified Licence can apply via the Invest in Dubai platform to secure a six-month permit (renewable for another six months) at a fee of AED 5,000 (approx. USD 1,361). The permit grants them the right to conduct non-regulated activities—such as trading, consulting, design, technology, and professional services—within Dubai's onshore markets, including participation in government tenders.

The initiative aligns with Dubai's Economic Agenda D33, which aims to double the size of the emirate's economy by 2033. Officials expect cross-jurisdiction business to increase by 15% to 20% during the first year, benefiting more than 10,000 active free-zone enterprises. Companies seeking to benefit must maintain separate financial records for their mainland operations and will incur a 9% corporate tax on revenue generated under the permit.

Dubai's Department of Economy & Tourism (DET), in coordination with the Dubai Business Registration and Licensing Corporation (DBLC) and the Free Zones Council, says the move enhances the emirate's business ecosystem by simplifying regulation, reducing barriers to expansion, and improving regulatory coherence.

In the first phase, the permit applies only to non-regulated sectors, with plans to extend coverage to regulated industries over time. Existing employees under a free-zone licence may continue their roles without requiring new permits.

Dubai's latest reform underscores its ambition to offer seamless business services and integrate free-zone advantages with mainland opportunities, pushing the emirate closer to its goal of regulatory innovation, economic diversification, and increased competitiveness.

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