The Dubai Department of Economic Development’s Dubai Business Registration and Licensing Foundation, in cooperation with the Dubai Free Zones Council, has launched a new Mainland Business Activity Permit for companies licensed in free zones. This new framework allows these companies to operate within the mainland market through a special permit system, facilitating their operations, reducing costs and risks, and enabling participation in local trade activities as well as competition for public sector contracts and tenders. This initiative supports the growth opportunities for small businesses and multinational corporations alike.

According to a statement by the Department of Economy and Tourism yesterday, this initiative was launched under Dubai Executive Council Resolution No. (11) of 2025, reflecting a commitment to updating regulatory frameworks and providing unified procedures for investors. This contributes to achieving the goals of Dubai’s economic agenda “D33,” which aims to double the emirate’s economy by 2033 and reinforce its position as a leading global destination for business and entertainment.

The permit allows eligible free zone companies holding a unified Dubai license to submit their applications digitally via the Invest in Dubai platform, enabling the entire process to be completed online. This grants small and medium enterprises, startups, and registration agents the highest levels of efficiency when operating within the mainland.

Ahmed Khalifa Al Kaizi Al Falasi, CEO of the Dubai Business Registration and Licensing Foundation, said: “The launch of this permit is an important step reflecting the visionary leadership’s ambition to establish Dubai as the best city in the world for business by creating a suitable environment for company owners and investors. It also demonstrates the constructive cooperation between the government and free zone authorities, which will make the investor journey in Dubai more comfortable.”

He added: “By simplifying processes between regulatory authorities, we contribute to facilitating business practices in the city while opening new growth horizons by leveraging local trade and government tenders. This initiative embodies Dubai’s distinguished position in regulatory innovation and reinforces its commitment to business-supportive policies, creating more job opportunities, enhancing the entrepreneurship sector, and providing a competitive advantage that attracts investors worldwide.”

By enabling freedom of operation between free zones and the mainland, the initiative is expected to boost activity among various regulatory authorities by 15 to 20% in the first year, benefiting more than 10,000 companies operating in free zones.

This will allow these companies to expand their activities in local trade, integrate into supply chains in the market, and participate in government tenders and contracts worth billions of dollars annually, providing opportunities previously limited to companies licensed only in the mainland.

In this context, Dr. Juma Al Matrooshi, Assistant Secretary-General of the Dubai Free Zones Council, said: “The launch of this permit supports the world-class business ecosystem that Dubai provides to the business community, investors, and companies of various types and sectors. We consider it a strategic step that enhances the emirate’s attractiveness for foreign investments.”

The framework initially covers non-regulated activities, including technology, consulting, design, professional services, and trade, with plans to expand to regulated sectors. The Mainland Business Activity Permit for free zone companies is valid for six months with a fee of 5,000 AED and can be renewed for a similar period with the same fee, making it a cost-effective option. Free zone companies operating in the mainland are subject to a 9% corporate tax on related revenues and must maintain separate financial records in compliance with the Federal Tax Authority’s requirements, enhancing transparency under unified regulatory procedures. Additionally, companies holding the permit are allowed to use their employees at mainland Dubai locations without needing to hire new staff.