The Dubai Department of Economic Development, in collaboration with the Dubai Free Zones Council, has introduced a new business activity license for companies licensed in free zones to operate in the mainland. This new framework allows these companies to engage in the local market through a specialized permit system, thereby simplifying their operations and reducing costs and risks. It enables them to participate in local trade activities and compete for public sector contracts, ultimately fostering growth opportunities for both small businesses and multinational corporations.
This initiative was launched under the Executive Council’s Resolution No. (11) of 2025, reflecting a commitment to updating regulatory frameworks and providing standardized processes for investors. This effort aims to achieve the goals outlined in the Dubai Economic Agenda D33, which seeks to double the emirate’s economy by 2033, affirming its position as a leading global hub for business and entertainment. The licensing process allows eligible free zone companies with a Dubai unified license to submit their applications digitally through the Invest in Dubai platform, completing the entire process online.
Ahmad Khalifa Al Qeisi Al Falasi, Executive Director of the Dubai Department of Economic Development, emphasized that this step is vital in realizing the ambitious vision of the leadership to establish Dubai as the premier global business city by creating a favorable environment for entrepreneurs and investors. He highlighted the collaborative efforts between the government and stakeholders in free zones that will enhance the investor experience in Dubai. By streamlining operations across regulatory authorities, we contribute to easing business practices in the city and unlocking new growth opportunities through local trade and government tenders. This initiative exemplifies Dubai’s exceptional position in regulatory innovation and reinforces its commitment to business-friendly policies, creating more jobs and enhancing the entrepreneurship sector while providing a competitive advantage that attracts investors globally, in line with the long-term economic diversification goals of the Dubai Economic Agenda D33 aimed at building a globally competitive digital economy.
10,000 Companies
By allowing flexibility for operations in both free zones and the mainland, the initiative is expected to boost engagement among various regulatory authorities by 15% to 20% in the first year, benefiting over 10,000 companies operating in free zones.
This will enable these companies to expand their local trade activities and integrate into the local market supply chains, allowing participation in government tenders and contracts valued at billions of dollars annually, which were previously exclusive opportunities for businesses licensed in the mainland.
Dr. Jumaa Al Matrooshi, Assistant Secretary-General of the Dubai Free Zones Council, stated that this supports the world-class business ecosystem offered by Dubai to the business community, investors, and various companies across different sectors. He views it as a strategic move that enhances the emirate’s appeal to foreign investments, highlighting the unique advantages free zones provide in terms of operational flexibility, competitiveness, and sector-specific environments available within the various free zones in the emirate.
First Phase
The initial phase of the framework covers unregulated activities, including technology, consulting, design, professional services, and trade, with plans to expand into regulated sectors. The business activity license for operating in the mainland for companies licensed in free zones will be valid for six months at a fee of 5,000 AED, and can be renewed for a similar duration at the same cost, making it a cost-effective option.
Companies licensed in free zones that operate in the mainland will be subject to a 9% corporate tax on relevant revenues, and firms are required to maintain separate financial records in accordance with the Federal Tax Authority’s requirements, enhancing levels of transparency within standardized regulatory procedures. Furthermore, companies obtaining the license will be allowed to utilize their employees at mainland locations in Dubai without needing to hire new staff.