Dubai Introduces a New Permit Allowing Free Zone Companies to Operate in the Local Market

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Dubai continues to strengthen its economic attractiveness by launching a revolutionary new measure: companies registered in free zones can now conduct business directly in the mainland market thanks to a new type of commercial permit.

This initiative, announced by the Department of Economy and Tourism (DET) in collaboration with free zone authorities, marks a major advancement in the emirate’s economic strategy, aimed at promoting flexibility, competitiveness, and integration of the local economic fabric.

A Bridge Between Two Economic Models

Traditionally, companies established in Dubai’s free zones benefited from advantages such as 100% foreign ownership, tax exemptions, and simplified procedures, but they were limited in their operations within the mainland (the local Emirati market).

With this new hybrid permit, they can now provide services, sell products, or collaborate with local companies without having to create a separate legal entity in the mainland.

This measure significantly reduces administrative complexity and opens new growth opportunities for foreign investors.

Objective: Strengthen Competitiveness and Attract Investment

According to Dubai’s economic authorities, this reform aims to:

  • Stimulate private sector growth by fostering synergies between free zones and the domestic market
  • Facilitate trade between local and international companies
  • Attract more foreign direct investment (FDI) by simplifying procedures to operate throughout the emirate
  • Support the “Dubai Economic Agenda D33” vision, which aims to double the size of Dubai’s economy over the next decade

A Windfall for Foreign Companies

Companies located in strategic free zones such as Dubai Multi Commodities Centre (DMCC), Dubai Internet City, Dubai Silicon Oasis, or JAFZA (Jebel Ali Free Zone) now see their prospects expanding.

They will be able to:

  • Participate in public tenders
  • Distribute their products directly in the local market
  • Establish partnerships with mainland companies
  • Access a much larger customer base

This development positions Dubai as one of the few global hubs offering such legal and commercial flexibility.

How to Obtain This Permit and What Does It Cost?

To obtain this new permit, companies registered in free zones simply need to submit an application via the Invest in Dubai platform, accompanied by their license and a no-objection certificate (NOC). The permit cost is set at 5,000 AED for six months, or 10,000 AED for one year. Once approved, it allows the company to operate legally in the mainland market without having to create a new entity, while maintaining its free zone status.

A Clear and Integrated Regulatory Framework

The new permit system will be issued by the Department of Economy and Tourism (DET), in coordination with the authorities of each relevant free zone.

Companies must comply with certain conditions related to:

  • Their main activity
  • The type of services or products offered
  • The level of regulatory compliance (licenses, taxation, etc.)

Simplified digital procedures will allow rapid permit acquisition, in line with Dubai’s policy of complete administrative digitalization.

Conclusion: Dubai Consolidates Its Status as a Global Economic Hub

With this new permit, Dubai sends a strong message: the emirate wants to simplify life for investors and accelerate economic exchanges between different business centers.

This reform strengthens Dubai’s position as a gateway between regional and international markets, while promoting smoother economic integration between local and foreign companies.

By combining regulatory innovation, flexibility, and long-term vision, Dubai once again confirms its role as a global leader in economic transformation and the creation of a borderless business ecosystem.

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