For years, running a business from a Dubai free zone often felt like being on an island. You had access to a great ecosystem, but the massive mainland market was just across the water, separated by red tape and high costs. That’s changing now.
This week, as part of its ambitious D33 Economic Agenda to double the city's economy, Dubai’s Department of Economy and Tourism (DET) rolled out a permit that could change everything. It’s called the Free Zone Mainland Operating Permit, and it acts as a direct bridge from that island to the mainland.
For thousands of companies, this is more than a new rule. It’s a direct path to new customers, government contracts, and the freedom to operate across the entire city.
A Straightforward Path to the Mainland
Forget long, complicated processes. The new framework, established by Dubai Executive Council Decision No. 11 of 2025, is built for speed.
Any eligible free zone company with a Dubai Unified Licence (DUL) can apply for the mainland permit directly through the “Invest in Dubai” online platform. For a fee of AED 5,000, you get a renewable, six-month pass to start operating in the mainland market. Officials believe this move alone could boost business between zones by 15 to 20 percent in the first year.
The Bottom Line: Cutting Through the Costs
So what does this really mean for your bank account? The savings are real.
The old way was expensive. Expanding to the mainland meant setting up a whole new LLC, a process that could easily cost tens of thousands of dirhams. This permit lets you bypass many of those major expenses.
- Licensing Fees: You can use your existing free zone license instead of paying for a costly new mainland one.
- Office Space: The pressure to rent a dedicated physical office on the mainland is significantly lower, which cuts a huge chunk of overhead.
- Sponsorship: This new path avoids the complex and often expensive need for a local Emirati sponsor, which has always been a big hurdle for small and medium-sized businesses.
Market experts are already seeing the potential. The Managing Director of 'Gulf Business Solutions' notes the immediate impact:
"For many of our clients in tech and consulting, this permit removes the final bureaucratic hurdle, making Dubai's entire domestic market accessible with unprecedented ease. We expect a surge in demand for adaptable commercial spaces in mainland areas."
What to Watch Out For
While the opportunity is huge, moving into the mainland market requires a clear strategy. It’s not just a change of scenery; it's a new competitive field.
First, you have to think about competition. You'll be competing with established mainland businesses that have deep local networks and loyal customers. You will need a solid plan to build your brand and earn trust from scratch.
Second, there’s a critical detail you cannot ignore: taxation. Any money your business makes from mainland activities will be subject to the UAE’s 9 percent corporate tax. This means you’ll need to keep your accounting sharp to separate your mainland and free zone revenue streams. It’s a new financial discipline many free zone companies will have to learn.
This permit is more than just paperwork. It's a strategic tool for any ambitious company ready to grow. For those that qualify, the question is no longer if you should expand, but how fast you can take advantage of the opportunity.
