Dubai eases mainland access for free zone firms with new permit

File picture [for illustration]

In a major move to boost business flexibility and growth, Dubai has launched a new permit allowing free zone companies to operate directly in the mainland.

The Dubai Business Registration and Licensing Corporation, in collaboration with the Dubai Free Zone Council, has introduced the Free Zone Mainland Operating Permit — a system designed to ease cross-jurisdiction business, open access to local markets and allow free zone firms to bid for government contracts.

The initiative is part of Dubai’s broader economic strategy under the Dubai Economic Agenda, D33, which aims to double the city’s economy by 2033.

Eligible companies with a Dubai Unified Licence can now apply for the permit online via the Invest in Dubai platform.

The permit is valid for six months at a cost of AED 5,000, and is renewable for the same fee every six months.

The move is expected to benefit over 10,000 businesses, especially startups and SMEs, by offering a low-cost, low-risk route into the domestic economy.

Initially covering non-regulated sectors like tech, consulting, design and trading, the framework will expand to regulated industries over time.

Companies using the permit will pay a 9 per cent corporate tax on mainland revenues and must maintain separate financial records in line with UAE tax regulations.

Officials say the new system could boost cross-jurisdiction business activity by up to 20 per cent in the first year, reinforcing Dubai’s reputation as a global hub for innovation, investment and ease of doing business.

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