DET (Formerly DED) vs Free Zones: Which Dubai Licence Fits Your Business?

What is the DET?
Dubai’s Department of Economy & Tourism (DET)—formerly the Department of Economic Development (DED)—is the principal authority that plans, licenses, and supervises Dubai’s mainland (onshore) business ecosystem. DET was created by merging Dubai Economy and Dubai Tourism in late 2021 to align economic policy, licensing and promotion under one roof.

Why it matters: DET issues and regulates mainland licenses (commercial, professional, industrial) and runs digital portals and guidance to help investors choose between mainland and free-zone options. In short, DET is the gateway to doing business across all of Dubai and the wider UAE market.

How a DET (Mainland) License Differs from a Free-Zone License 
1) Market access & scope of activity

Mainland (DET): Operate anywhere in Dubai and across the UAE—B2B, B2C, government, and free zones. Activities are broad and can include retail, wholesale, e-commerce, services, manufacturing (subject to zoning), etc.
Free zones (e.g., DMCC, JAFZA, DAFZA, IFZA, Dubai South): Licenses are issued by each zone and are designed to trade within the zone or internationally. To sell routinely into the mainland, a free-zone company typically uses a local distributor/agent or sets up a mainland branch/subsidiary.

2) Ownership rules

Mainland: Since 2021, most activities allow 100% foreign ownership—no UAE national sponsor required (restricted strategic sectors aside).

Free zones: Have long offered 100% foreign ownership inside the zone.

3) Corporate tax (from June 2023)

Mainland companies: Subject to 9% UAE Corporate Tax on taxable profits above AED 375,000.

Free-zone companies: If they qualify as a Qualifying Free Zone Person (QFZP), they enjoy 0% on qualifying income and 9% on non-qualifying income, provided they meet stringent substance and “de-minimis” tests and other conditions. Failure to qualify can lock the entity into 9% for a period. (Large multinationals may also face a 15% minimum top-up under OECD rules.)

4) Customs & distribution

Mainland: Obtain a Dubai Customs Importer/Exporter Code and distribute freely nationwide.

Free zone: Operate in bonded territory; moving goods into the mainland triggers customs clearance/duty via a distributor or mainland entity.

5) Licensing authority & compliance

Mainland: Licensed and renewed with DET, using emirate-wide rules and economic initiatives.

Free zone: Licensed by the zone authority; activity lists and rules vary by zone specialization.

What You Can Do with a DET General Trading License
A DET General Trading license allows you to import, export, wholesale, retail, and re-export a broad range of unrelated goods under one company—ideal for testing multiple categories and scaling fast. Popular verticals include consumer electronics, fashion, home décor, beauty & personal care, packaged F&B (non-regulated), stationery/office supplies, and automotive accessories.

For online sales, add an e-commerce activity and link your domain/payment gateway during onboarding. (Regulated goods—e.g., cosmetics, supplements, medical devices, wireless—require secondary approvals from the relevant authorities, but the core DET license remains unchanged.)

When DET (Mainland) Makes the Most Sense
You want full access to the UAE market (retail stores, B2B distribution, government tenders).

You need multiple activities under a single umbrella and the option to add e-commerce and branches/warehouses across the country.

Your model benefits more from nationwide presence than from free-zone incentives.

When a Free Zone Can Be Smarter
Your revenue will be predominantly export/intra-free-zone, and you are targeting QFZP status for 0% on qualifying income.

You need industry-specific clusters (e.g., commodities at DMCC, logistics at JAFZA).

Knightsbridge Group: 20 Years of Dubai Setups—Done Right

For two decades, Knightsbridge Group has helped founders, SMEs and multinationals choose and implement the correct Dubai structure—mainland (DET) or free zone—and stay compliant as laws evolve.

What we do:

Jurisdiction & tax mapping: Mainland vs zone modeling (market access, Corporate Tax/QFZP, customs, VAT).

Company formation end-to-end: Name approval, MoA/AoA, office/warehouse leases, license issuance, Customs Code.

Regulatory approvals: Product registrations (e.g., Dubai Municipality for cosmetics/foods), MOHAP, TDRA—run in parallel with licensing to shorten go-live.

Banking & payments: Corporate account opening and gateway onboarding packs.

Ongoing compliance: VAT, ESR, UBO, corporate tax filings, governance.

Not sure whether DET or a free zone is right for you?

We’ll model both scenarios—costs, tax, logistics, and market access—and deliver a structure that scales with your growth.

Speak to Knightsbridge Group to choose the optimum Dubai setup—and launch faster, with confidence.