Dubai’s New Free Zone Mainland Access Rules

Over the last decades free zones have been instrumental in helping Dubai attract inward investment. They’ve given foreign investors the ability to set up quickly, hold full ownership and manage cross-border activity from a secure base, but at the same time, they’ve always kept a clear line between these and onshore firms. That line is now less rigid with the introduction of a new resolution allowing many free zone companies to enter the mainland market through a permit issued by Dubai Economy and Tourism.

This change has broad implications for how firms approach structuring, expansion and cross-border planning. The sections below set out what’s changed and the practical consequences for corporates, investors and those planning regional structures.

How the new rule works
In March 2025 Dubai’s Executive Council issued Resolution No. 11, giving most free zone companies the option to operate in the mainland under a permit from Dubai Economy and Tourism. The rule doesn’t extend to financial institutions in the DIFC, which remain under separate oversight, but it covers the large majority of other free zone firms.

Previously, a company that wanted mainland access had to apply for a dual licence through its free zone authority or establish a separate mainland entity, often duplicating filings and adding cost. The new permit avoids that. A free zone entity can apply directly to DET for approval to carry out mainland business, and the permit is tied to the activities already listed on its existing licence. Additional approvals are still needed in regulated areas such as finance, health and education, but for many trading and service firms the route to onshore operations is now more direct.

Structuring implications
For many groups this change raises immediate questions on structure. Companies that have kept parallel entities in both a free zone and the mainland may now see scope to streamline. Running one licensed entity with a DET permit could reduce overheads, simplify filings and remove duplicated audits.

The impact isn’t only cost. A cleaner structure makes group governance easier, particularly for multinationals reporting across several jurisdictions. It also helps with substance tests under economic rules, since fewer entities mean clearer allocation of staff, assets and management. That can reduce the risk of challenges around transfer pricing or tax residency, especially where holding companies link Dubai to other markets.

Family businesses and investment offices should also weigh the longer-term planning angle. With simpler routes into the mainland, they can consolidate operating companies, ease reporting lines and create more transparent cross-border flows. Groups that are active in several Gulf states may find it easier to use Dubai as a hub if the structural burden is lighter.

Expansion and investment
The permit also changes the entry point for new investors. In the past, companies often chose between the benefits of a free zone and the broader reach of a mainland licence, knowing that either route had trade-offs. With Resolution No. 11, they can start in a free zone and keep the option of mainland access open, which lowers the upfront risk of choosing the wrong base.

This is especially relevant for small and mid-sized firms that want to test the market without building two structures. A consulting practice, for instance, can set up in a free zone, build regional links and then add a DET permit to serve mainland clients. The same applies to trading businesses that want to supply both local buyers and overseas customers from one platform.

Foreign capital may also read this as a sign that Dubai is making it easier to use the city as a hub. The clearer path between free zones and the mainland should encourage investors who prefer gradual expansion, since they can stage growth without major restructuring.

Sectoral effects and limits
The impact will vary widely across industries. Trading firms that import, distribute and re-export goods are likely to gain from being able to serve mainland buyers without creating a second company. Professional services, from consultancies to design studios, may also find it easier to contract with local clients while keeping their free zone base. E-commerce operators stand to benefit too, since many have struggled with the practical need for mainland licensing to reach customers directly.

Restrictions remain, though. Activities that fall under separate regulators, including finance, health care and education, will continue to need approvals on top of the DET permit. These sectors have more complex oversight and it’s unlikely the resolution will remove those layers.

Looking ahead
This change fits with Dubai’s broader drive to keep its corporate framework competitive and attractive for global capital. Over the past decade, the emirate has introduced 100 per cent foreign ownership onshore, reformed company law, and brought in corporate tax, all while keeping free zones at the heart of its offer. The new permit extends that trajectory by making the line between free zones and the mainland easier to cross.

For investors and corporates, the detail will matter. How regulators apply the rule across different activities, how DET manages the permitting process, and how tax and economic substance rules interact with it will shape the practical outcome. Much will also depend on how free zone authorities position themselves, since their ability to attract new entrants often hinges on the balance between their own licence packages and what DET allows.

The long-term picture will come into view gradually, and as the framework takes shape, companies and investors will be weighing how best to use it.