Dubai Department of Economy and Tourism (DET) has launched a freezone mainland operating permit, allowing freezone companies to directly conduct business in mainland Dubai under a unified regulatory framework, according to Dubai Media Office. DET expects more than 10k freezone firms to apply for the license — in turn leading to a 15-20% increase in cross-jurisdiction activity within the first year of the initiative.

How it works: Freezone firms holding a Dubai Unified License can apply for the permit via the Invest in Dubai platform. The permit costs AED 5k, renewable every six months for another AED 5k. Freezone firms that choose to expand into the mainland will be subject to 9% corporate tax on their mainland activities, and will have to keep separate financial records under Federal Tax Authority rules. The new permit also grants access to government tenders and contracts.

In its first phase, the permit will only apply to non-regulated sectors, such as technology, professional services, consultancy, design, and trading. Regulated sectors are set to fall under the permit’s extended scope later on.

We knew this was coming: In March, Dubai Crown Prince Hamdan bin Mohammed bin Rashid Al Maktoum approved a resolution allowing all freezone companies — except those in Dubai International Financial Center (DIFC) — to expand beyond their zones into mainland Dubai and to other emirates. The move extended earlier dual-licensing models at Dubai Airport Freezone, Dubai Design District, and DIFC to all 26 freezones in Dubai.

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