Can a Dubai free zone company trade on the mainland?
In Dubai it can, since 2025, if it holds a license or permit from DET. Without one, the general rule still applies: Invest in Dubai states that a free zone company cannot trade within the UAE without a specific mainland license.
Dubai Executive Council Resolution No. 11 of 2025 was issued on 3 March 2025. It applies to free zone establishments that wish to conduct activities outside the free zones, within the Emirate of Dubai. It does not apply to financial establishments licensed in the Dubai International Financial Centre.
What does Resolution No. 11 of 2025 allow?
The Resolution allows DET to issue three things to a free zone establishment, under Article 4.
The establishment must comply with federal and local legislation and keep separate financial records for the activities it conducts outside the free zone. It may use its existing workforce, registered with the free zone, for those activities.
The Resolution gave existing establishments one year to bring themselves into line, extendable once, and required DET to issue a list of permitted economic activities within six months.
| Route | Validity | DET fee |
|---|---|---|
| License for a branch within the Emirate | One year, renewable | Not confirmed in our research |
| License for a branch operating out of the free zone | One year, renewable | AED 10,000 a year (Article 12) |
| Permit to conduct specific activities within the Emirate | Six months at most | AED 5,000 (Article 12) |
What is the Free Zone Mainland Operating Permit?
The Free Zone Mainland Operating Permit is the permit route, put into practice. The Dubai Business Registration and Licensing Corporation, part of DET, launched it on 8 October 2025 with the Dubai Free Zones Council, under Resolution No. 11 of 2025.
The permit is valid for six months and is renewable. It costs AED 5,000 for each six month period. Applications are made digitally on the Invest in Dubai platform.
Who can apply, and for which activities?
The Dubai Media Office states that the permit is open to free zone companies that hold a Dubai Unified License, and that its first phase covers non-regulated activities such as technology, consultancy, design, professional services and trading.
Regulated activities are not part of that first phase.
How is the mainland income taxed?
The Dubai Media Office states that 9% corporate tax applies to the mainland related revenue earned under the permit, and that separate financial records are required.
Under Cabinet Decision No. 100 of 2023, income attributable to a Domestic Permanent Establishment, which is a place of business in the UAE outside the free zone, is taxable at 9%.
For goods there is a second cost. The UAE government portal states that customs duty applies when goods move from a free zone into the mainland market.
Good to knowThe permit does not turn a free zone company into a mainland company. It permits specified activity on the mainland for a period.
What has not been confirmed?
Four points could not be confirmed from an official source when we checked in September 2026. We confirm the current position with DET for your activity before you apply.
- The DET fee for the first route, a full branch within the Emirate.
- Whether DET's list of permitted economic activities has been published in full.
- Whether the two branch license routes are open for applications, as the six month permit is.
- The conditions for obtaining a Dubai Unified License.
Does this apply outside Dubai?
The Resolution covers the Emirate of Dubai only. The UAE government portal lists the general routes: a licensed mainland distributor, a mainland branch or company, or the required mainland licenses or approvals.
Abu Dhabi has its own arrangement. ADRA's Dual License lets a company registered in an Abu Dhabi economic free zone operate outside the free zone as a free zone branch, at a basic cost of AED 1,200 including 6 activities. KEZAD states that its free zone companies can sell to the local market through distributors, agents or a dual license.