Dubai Launches Free Zone Mainland Operating Permit

Dubai has introduced a new framework that allows free zone companies to operate in the mainland under a structured permit system. The FZMOP (Free Zone Mainland Operating Permit), launched by the DBLC (Dubai Business Registration and Licensing Corporation) in collaboration with the DFZC (Dubai Free Zone Council), simplifies how free zone businesses can engage in mainland activities while remaining within their existing free zone structure.

Easier Access to Dubai’s Mainland

Introduced under Dubai Executive Council Decision No. 11 of 2025, the permit enables eligible free zone companies to get a DUL (Dubai Unified Licence) and to operate in the mainland.

This will reduce administrative barriers and allow businesses to take part in domestic trading, partnerships, and government contracts that were previously limited to mainland-licensed companies. It is beneficial for SMEs (small and medium enterprises), startups, and international firms that want to expand their operations within Dubai without establishing a separate mainland entity.

Permit Conditions and Costs

The Free Zone Mainland Operating Permit currently covers non-regulated sectors such as technology, consultancy, design, professional services, and trading. There are plans to expand it to other regulated activities in later phases.

The permit is valid for six months and costs AED 5,000, with renewal options for the same amount. Free zone companies that use this permit must keep separate financial records for mainland transactions and will be subject to 9% corporate income tax on related revenue, following FTA (Federal Tax Authority) regulations. Businesses can use their existing free zone employees for mainland operations, which reduces both cost and complexity.

Growth Opportunities for Businesses

The project is expected to enhance cross-jurisdictional activity between free zones and the mainland by 15 to 20% in the first year, benefiting more than 10,000 free zone firms. By allowing these companies to integrate with domestic supply chains and compete for government tenders, Dubai has created a more connected and efficient business environment.

This also supports the broader goal of creating a unified and transparent business framework across the emirate, where both free zone and mainland entities can collaborate and grow under consistent regulations.

A Step Toward an Integrated Business Environment

The Free Zone Mainland Operating Permit builds on Dubai’s ongoing efforts to simplify licensing and improve business accessibility. Alongside the Dubai Unified Licence, it creates a more connected regulatory system that helps companies scale efficiently.

For businesses operating in Dubai’s free zones, this new permit provides a practical way to reach new markets, serve local clients, and participate in public sector opportunities, all while maintaining their existing setup.

This is a very recent development in Dubai’s regulatory framework, and further updates are expected as the initiative expands to more sectors.

TME Services will continue to monitor the progress of the Free Zone Mainland Operating Permit and keep clients informed about any new developments, ensuring that businesses can respond quickly and make the most of emerging opportunities.