Dubai has introduced the Free Zone Mainland Operating Permit, a game-changer for businesses looking to expand beyond free zones. Previously, free zone companies had to set up separate licenses or local partnerships to operate on the mainland. This new permit simplifies the process, allowing companies to legally trade, bid for government contracts, and grow their footprint, all while keeping operations cost-effective and compliant.
Why This Permit Matters
The Free Zone Mainland Operating Permit is designed to:
- Simplify Cross-Jurisdiction Operations: Free zone companies can now legally operate in Dubai’s mainland without forming additional partnerships.
- Provide Cost-Effective Access: For a fee of AED 5,000, firms gain six months of mainland operational rights, renewable at the same cost.
- Encourage Local Trade Participation: Businesses can engage in government contracts and local supply chains previously restricted to mainland-licensed entities.
This initiative strengthens Dubai’s integrated business ecosystem and encourages SMEs and multinational firms to explore new growth opportunities.
Who Can Benefit & What It Covers
- Target Audience: SMEs, startups, and multinational companies operating in Dubai’s free zones.
- Initial Coverage: Non-regulated activities including technology, consultancy, design, trading, and professional services.
- Future Plans: Expansion to regulated sectors is expected in later phases.
This phased approach ensures smooth adoption while maintaining regulatory compliance.
Cost, Validity & Compliance Requirements
- Permit Fee & Duration: AED 5,000 for six months, renewable at the same cost.
- Corporate Tax: 9% on mainland-related revenues.
- Financial Compliance: Companies must maintain separate records for mainland operations in line with Federal Tax Authority (FTA) rules.
These measures promote transparency and align free zone operations with federal regulations.
Operational Flexibility
- Staffing: Firms can use their existing free zone employees for mainland activities, no new hires required.
- Application Process: Entirely online via the Invest in Dubai platform, making it accessible for SMEs and startups alike.
This flexibility reduces operational barriers and encourages more companies to expand efficiently.
Economic Impact & Strategic Significance
- Projected Growth: Over 10,000 free zone companies are expected to benefit in the first year.
- Business Activity: Cross-jurisdictional operations may increase by 15–20% within the initial period.
- Strategic Goal: Enhance Dubai’s competitiveness and align with the city’s broader vision to unify business operations and attract investment.
By simplifying mainland access, Dubai strengthens its position as a global hub for innovation and entrepreneurship.