Dubai has unveiled a groundbreaking initiative that allows businesses licensed in its free zones to operate within the city’s mainland market. Launched by the Dubai Department of Economy and Tourism’s Business Registration and Licensing (BRL) sector in collaboration with the Dubai Free Zones Council, the new “Business Activity Permit” is designed to streamline operations, lower entry barriers, and boost the competitiveness of free zone companies.

This strategic move follows the Executive Council Resolution No. (11) of 2025 and aligns with the Dubai Economic Agenda D33, which targets doubling the city’s economy by 2033. It reflects Dubai’s commitment to regulatory modernization, investor-friendly processes, and its ambition to remain a global business and leisure hub.

Seamless Digital Process for Eligible Companies

Qualified businesses holding a unified Dubai license in free zones can now digitally apply for the permit via the “Invest in Dubai” platform. The entire process is conducted online, offering maximum convenience and efficiency for startups, SMEs, and registration agents looking to tap into the local market.

Enhancing Competitiveness and Growth Opportunities

Ahmed Khalifa Al Qaisi Al Falasi, Executive Director at BRL, emphasized that this permit marks a significant step toward realizing the vision of Dubai’s leadership in positioning the city as the best place globally to do business. The initiative reflects strong collaboration between government entities and free zone authorities, fostering an environment conducive to innovation, entrepreneurship, and sustainable growth.

He noted that this reform enhances Dubai’s global appeal by promoting regulatory innovation, supporting business-friendly policies, and creating more job opportunities. It also empowers businesses to participate in public sector contracts and tenders, often worth billions annually.

Bridging Free Zones and the Local Market

According to estimates, the new permit could increase interaction between regulatory authorities by 15–20% in the first year alone, directly benefiting over 10,000 companies currently operating in Dubai’s free zones. These companies will now be able to expand into local trade, integrate with supply chains, and compete in government procurement, a market previously restricted to mainland businesses.

Strengthening Dubai’s Global Business Ecosystem

Dr. Juma Al Matrooshi, Assistant Secretary-General of the Dubai Free Zones Council, described the new permit as a strategic milestone. He highlighted its alignment with Dubai’s commitment to building a world-class business ecosystem that offers operational flexibility, sector-focused infrastructure, and investment incentives.

Al Matrooshi added that the initiative significantly simplifies doing business in Dubai and unlocks a wide range of opportunities across various industries, further reinforcing the city’s position as a magnet for foreign investment.

Affordable and Flexible Licensing Option

The permit is valid for six months and costs AED 5,000, with the option to renew for an additional six months at the same fee. This affordable framework gives companies a low-risk, cost-effective way to test and expand into the mainland market.

However, free zone companies operating under this permit will be subject to the standard 9% corporate tax on revenues generated in the mainland. They must also maintain separate financial records for activities conducted outside the free zones.

This new licensing framework represents a major policy shift that fosters a more unified, dynamic, and globally competitive business environment in Dubai—offering new avenues for growth and collaboration across the emirate’s economic landscape.