Dubai is achieving another breakthrough in its rapid evolution as a global economic hub by introducing a groundbreaking system that blurs the boundaries between free zones and the mainland. Developed by the Dubai Business Registration and Licensing Corporation (DBLC) in collaboration with the Dubai Free Zone Council, this initiative promises to revolutionize business operations for the more than 10,000 companies registered in the free zones. They now have cost-effective access to the vibrant domestic market, including the opportunity to participate in government contracts and tenders, previously reserved for companies with mainland licenses.
Implemented in accordance with Dubai Executive Council Decision No. 11 of 2025, the free zone permit on the mainland is a testament to Dubai's commitment to simplifying business operations and stimulating growth. Companies holding a Dubai Unified License (DUL) can now easily apply for this permit digitally through the intuitive Invest in Dubai (IID) platform. This fully online process, aimed at startups, small and medium-sized businesses, and registration agencies, eliminates bureaucratic hurdles, offering seamless access to the mainland.
Ahmad Khalifa Al Qaisi Al Falasi, CEO of DBLC, emphasized the significance of this initiative, stating, "This underscores our unwavering commitment to making Dubai the most business-friendly city in the world." He also noted the fruitful collaboration between the government and free zone entities that underpinned this breakthrough. "By simplifying cross-jurisdictional transactions, we are enhancing the ease of doing business and opening up new growth opportunities, from domestic trade to government tenders," Al Falasi added, emphasizing that this innovation not only strengthens Dubai's position as an attractive investment destination but also directly contributes to achieving the ambitious goals of the Dubai Economic Agenda (D33).
He added: "This initiative reinforces Dubai's position as a benchmark for regulatory innovation and reaffirms its commitment to progressive, business-friendly policies in line with the D33 Agenda."
Implemented in accordance with Dubai Executive Council Decision No. 11 of 2025, the free zone permit on the mainland is a testament to Dubai's commitment to simplifying business operations and stimulating growth. Companies holding a Dubai Unified License (DUL) can now easily apply for this permit digitally through the intuitive Invest in Dubai (IID) platform. This fully online process, aimed at startups, small and medium-sized businesses, and registration agencies, eliminates bureaucratic hurdles, offering seamless access to the mainland.
Ahmad Khalifa Al Qaisi Al Falasi, CEO of DBLC, emphasized the significance of this initiative, stating, "This underscores our unwavering commitment to making Dubai the most business-friendly city in the world." He also noted the fruitful collaboration between the government and free zone entities that underpinned this breakthrough. "By simplifying cross-jurisdictional transactions, we are enhancing the ease of doing business and opening up new growth opportunities, from domestic trade to government tenders," Al Falasi added, emphasizing that this innovation not only strengthens Dubai's position as an attractive investment destination but also directly contributes to achieving the ambitious goals of the Dubai Economic Agenda (D33).
He added: "This initiative reinforces Dubai's position as a benchmark for regulatory innovation and reaffirms its commitment to progressive, business-friendly policies in line with the D33 Agenda."
According to DBLC (Dubai Business Link Corporation), the integration of free zone operations with Dubai mainland promises significant growth in cross-jurisdictional activity, potentially reaching 15-20% in the first year. This will allow companies registered in free zones to more deeply integrate into Dubai's domestic supply chains and access government contracts worth billions of dirhams. Dr. Juma Al Matroushi, Deputy Secretary General of the Dubai Free Zones Council, emphasized that this approval strengthens the emirate's position as a global investment hub, complementing the existing operational flexibility and sectoral advantages of the free zones. This strategic decision, he noted, enhances Dubai's attractiveness to foreign investment and contributes to the D33 program's objectives by simplifying operations and opening up new opportunities for companies in the city's dynamic economy.
In its initial phase, the approval will cover unregulated sectors, including technology, consulting, design, professional services, and trade. It is planned to expand its coverage to regulated industries in the future. The permit is valid for six months and is renewable for a fee of AED 5,000. A key benefit is the ability to utilize existing employees on the mainland without the need for additional recruitment. Companies operating under this permit will be subject to a 9% corporate tax on income earned from operations on the mainland and will be required to maintain separate financial records in accordance with Federal Tax Authority (FTA) requirements. This initiative is part of the Dubai Department of Commerce and Development (DET)'s broader efforts to harmonize the regulatory framework, following the introduction of the Dubai Unified License (DUL).
Officials stated that the implementation of the new system strengthens Dubai's global competitiveness by offering investors flexible, transparent, and convenient ways to expand their businesses. This initiative is intended to attract more foreign investment, simplify business registration and management procedures, and create a more favorable environment for entrepreneurship. Authorities emphasize that the updated rules and procedures are developed in accordance with international standards and are aimed at stimulating economic growth and diversification.
In its initial phase, the approval will cover unregulated sectors, including technology, consulting, design, professional services, and trade. It is planned to expand its coverage to regulated industries in the future. The permit is valid for six months and is renewable for a fee of AED 5,000. A key benefit is the ability to utilize existing employees on the mainland without the need for additional recruitment. Companies operating under this permit will be subject to a 9% corporate tax on income earned from operations on the mainland and will be required to maintain separate financial records in accordance with Federal Tax Authority (FTA) requirements. This initiative is part of the Dubai Department of Commerce and Development (DET)'s broader efforts to harmonize the regulatory framework, following the introduction of the Dubai Unified License (DUL).
Officials stated that the implementation of the new system strengthens Dubai's global competitiveness by offering investors flexible, transparent, and convenient ways to expand their businesses. This initiative is intended to attract more foreign investment, simplify business registration and management procedures, and create a more favorable environment for entrepreneurship. Authorities emphasize that the updated rules and procedures are developed in accordance with international standards and are aimed at stimulating economic growth and diversification.