“This move eases cross-jurisdiction operations, opening cost-effective, low-risk pathways for businesses to engage in domestic trading and secure government contracts, and fostering growth for small enterprises and multinationals alike,” Dubai’s Department of Economy and Tourism (DET) said on Wednesday.
In its initial phase, the new permit covers non-regulated activities including technology, consultancy, design, professional services, and trading, with plans to extend to regulated sectors.
The Free Zone Mainland Operating Permit is valid for six months at a cost of Dh5,000 renewable for the same fee every six months.
“Free zone companies engaging in mainland activities will be subject to 9% corporate tax on related revenues and must maintain separate financial records in line with Federal Tax Authority (FTA) requirements, promoting transparency and regulatory harmony. Moreover, businesses that avail this permit can use their existing staff in mainland operations, without the need to recruit new ones,” DET noted.
10,000 firms to benefit
By bridging free zone and mainland operations, DET noted, “The initiative is projected to boost cross-jurisdictional activity (in Dubai) by 15-20 per cent in the first year, benefitting over 10,000 active free zone firms and allowing companies to expand into local trading, integrate with domestic supply chains, and unlock access to government tenders and contracts worth billions annually — opportunities that were previously reserved for mainland-licensed entities.”
“We are enhancing ease of doing business while opening new avenues for growth, from domestic trading to government tenders,” said Ahmad Khalifa AlQaizi AlFalasi, CEO of Dubai Business Registration and Licensing Corporation (DBLC), adding: “This initiative cements Dubai’s position as a benchmark for regulatory innovation and further reinforces its commitment to progressive, business-friendly policies, driving job creation, entrepreneurship, and a competitive edge that attracts investors worldwide.”
How to apply
Eligible free zone companies holding a Dubai Unified Licence (DUL) can apply digitally via the Invest in Dubai (IID) platform. According to DET, the process is entirely online, ensuring efficiency for SMEs, startups, and incorporation agents seeking mainland access.
More details can be found on the Invest in Dubai website.
Source: https://www.khaleejtimes.com/business/dubai-launches-free-zone-mainland-operating-permit
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