Dubai has rolled out a permit that allows free zone companies to operate on the mainland and compete for government tenders and contracts.
The Free Zone Mainland Operating Permit was introduced by the Dubai Business Registration and Licensing Corporation under the Department of Economy and Tourism, in collaboration with the emirate’s Free Zone Council.
The permit allows free zone companies to engage in non-regulated sectors, including technology, consultancy, design, professional services, and trading. It is priced at AED5,000 ($1,361) for six months and can be renewed upon expiry.
Companies will be liable for a 9 percent corporate tax and must maintain separate financial records in compliance with Federal Tax Authority guidelines. They may utilise their existing workforce for mainland operations without hiring additional staff.
The initiative is projected to increase cross-jurisdictional business by 15 to 20 percent in its first year, according to the Department of Economy and Tourism. Over 10,000 active free zone companies stand to benefit, gaining access to major government contracts that were previously restricted to mainland-licensed businesses.
In August, the Dubai government reported that the economy grew 4 percent year-on-year to AED120 billion ($33 billion) in Q1 2025, supported by robust public-private partnerships.
For 2025, government expenditure is set at over AED86 billion, with expected revenues of AED98 billion.
