| Sector | Previous Restriction | New Opportunity Under Permit |
|---|---|---|
| Consultancy & Professional Services | Could only advise or contract with mainland clients through legal workarounds or costly branches. | Direct legal contracting with all mainland clients and government entities, accelerating project acquisition. |
| Technology & Digital Solutions | Faced complexity in directly selling software, licenses, or implementing solutions for mainland businesses. | Unrestricted access to offer SaaS, IT consultancy, software integration, and digital services to the full UAE market. |
| Trading & Commercial Activities | Restricted from domestic sales, relying on third-party distributors for local product sales. | Direct engagement in local trading, allowing integration with domestic supply chains and serving the end consumer directly. |
| Creative & Design Services | Limited in bidding for major local or government-led design/marketing campaigns. | Direct eligibility for lucrative government tenders and local marketing projects, expanding client portfolios immediately. |
This focused approach allows these knowledge-based and service-oriented industries to immediately leverage their existing free zone benefits (like 100% foreign ownership) while gaining critical mainland market penetration.
The business ecosystem in Dubai has just taken its most significant leap towards integration and efficiency. Launched by the Dubai Business Registration and Licensing Corporation (DBLC), part of the Department of Economy and Tourism (DET), in collaboration with the Dubai Free Zone Council, the Free Zone Mainland Operating Permit is a revolutionary new framework.
This permit effectively eliminates the traditional wall separating the free zones from the mainland, creating cost-effective, low-risk pathways for businesses to engage in domestic trading, access local supply chains, and compete for massive government contracts. For over 10,000 active free zone companies, this initiative represents a direct path to exponential growth, consolidating Dubai’s status as the world’s most business-ready city.
The launch of the Free Zone Mainland Operating Permit is not merely a bureaucratic change; it is a fundamental driver of the Dubai Economic Agenda D33. This agenda aims to double the size of Dubai’s economy by 2033 and consolidate the city’s position as a leading global destination for business and leisure.
As stated by DET and the Dubai Free Zone Council, the initiative:
The Free Zone Mainland Operating Permit is formally introduced under Dubai Executive Council Decision No. 11 of 2025. This decree provides the legal clarity necessary for free zone entities to conduct business on the mainland without requiring a costly and complex separate mainland entity registration (such as establishing a mainland branch).
This new system is specifically designed to facilitate seamless cross-jurisdiction operations, ensuring efficiency for startups, SMEs, and large multinationals alike.
| Benefit | Impact |
|---|---|
| Government Tenders Access | Companies can now bid for government tenders and contracts worth billions annually—an opportunity previously reserved for mainland entities. |
| Market Expansion & Domestic Trading | Immediate and direct legal access to the entire domestic consumer base, integrating fully with local trading and supply chains. |
| Workforce Flexibility | Businesses can utilize their existing free zone-sponsored staff for mainland operations. There is no need to recruit new personnel or secure new mainland visa quotas, offering significant cost savings. |
| Low-Risk Market Entry | The permit’s cost-effective and limited 6-month validity allows businesses to test the mainland market viability before committing to a larger structural investment. |
A crucial prerequisite for applying for the Mainland Operating Permit is holding a valid Dubai Unified Licence (DUL). The DUL is a foundational digital initiative designed to create a single, unique, and unified commercial identity for all businesses in Dubai, regardless of jurisdiction.
The DUL ensures:
The framework focuses initially on knowledge-based and service-oriented industries, with clear intentions to expand.
| Permit Feature | Details |
|---|---|
| Eligibility Prerequisite | Must hold a Dubai Unified Licence (DUL). |
| Initial Activities Covered | Non-regulated activities including Technology, Consultancy (Management, IT, Legal, Marketing), Creative Design, Professional Services, and General Trading. |
| Exclusions | Activities that are currently heavily regulated (e.g., Finance, Health, Education) may still require specific, sector-based approvals or are pending inclusion. |
| Application Process | 100% digital via the Invest in Dubai (IID) platform. |
| Validity & Cost | Valid for six months at a cost of AED 5,000, renewable for the same fee every six months. |
While free zone companies benefit from a 0% Corporate Tax rate on Qualifying Income derived from their free zone activities, the introduction of the Mainland Operating Permit creates a dual tax liability that companies must manage correctly.
The core compliance requirements mandated by the Federal Tax Authority (FTA) are:
| Compliance Requirement | Action Required |
|---|---|
| Corporate Tax Rate | Revenue generated specifically from activities conducted on the mainland under this permit will be subject to the standard 9% UAE Corporate Tax rate (on taxable income exceeding AED 375,000). |
| Financial Transparency | Companies are mandated to maintain separate and distinct financial records for their free zone operations and their mainland activities. This is non-negotiable for proving which income streams are subject to the 0% rate and which fall under the 9% mainland rate. |
| FTA Registration | The entity must be registered with the FTA and file its annual corporate tax return within nine months of the financial year end, reporting both income streams accurately. |
The takeaway for investors is clear: The permit allows flexible operation, but the financial recording must be rigorous to maintain the preferential 0% tax status on the majority of free zone income.
The application for the Free Zone Mainland Operating Permit is fully digital, aligning with Dubai’s push for a digital-first economy.
The streamlined application process ensures efficiency, particularly for SMEs and startups looking to rapidly expand their market footprint.
This permit is advantageous for a wide range of businesses, especially:
The Free Zone Mainland Operating Permit is a powerful demonstration of Dubai’s commitment to continuous regulatory innovation. By seamlessly bridging the economic activity between free zones and the mainland, the emirate is not only simplifying the experience for over 10,000 existing businesses but is also signalling to the world that it is prepared to lead in global efficiency and competitiveness.
This strategic move supports job creation, fosters entrepreneurship, and unlocks billions in domestic market opportunities, cementing Dubai’s legacy as a truly dynamic global investment hub well on its way to achieving the ambitious goals of the D33 agenda.
Need support for your permit application?
Contact GloboPrime Corporate Services today to schedule a consultation and ensure your business leverages the Mainland Operating Permit for maximum growth and compliance efficiency.
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