Can a Free Zone Company Sell in Mainland UAE? Dubai's Permit, Branch and Dual License Routes Explained

Yes, in Dubai a free zone company can now sell and operate on the mainland, but only with a license or permit from the Department of Economy and Tourism (DET). Executive Council Resolution No. 11 of 2025 lets a free zone company operate outside its zone within Dubai "as long as it obtains the necessary licenses or permits". The permit route costs AED 5,000 for six months. The rules below are as of October 2026 and cover Dubai only.

What does Dubai's 2025 resolution allow?

The resolution allows free zone companies, with the exception of financial institutions licensed in the Dubai International Financial Centre, to operate in Dubai outside the free zone once they hold a DET license or permit. The same announcement says:

• Operations outside Dubai need separate approval from the authorities there.
• A company must keep separate financial records for operations outside the free zone.
• Existing free zone companies already operating on the mainland must comply within one year of the effective date, and the DET Director General may extend that by one more year.

Check the effective date and your own deadline with DET if you already sell to mainland customers.

Which routes can a free zone company use to sell on the mainland?

The permit and the branch licenses come from the Dubai Media Office announcements. The Dual License description is from Dubai.ae. We could not find a published fee for the branch licenses or the Dual License; ask DET or your zone in writing.

How does the AED 5,000 Free Zone Mainland Operating Permit work?

DET's Dubai Business Registration and Licensing Corporation launched the permit with the Dubai Free Zone Council on 8 October 2025. The published terms:

• Valid for six months at AED 5,000, renewable for the same fee every six months.
• Open to eligible free zone companies holding a Dubai Unified License (DUL), applying digitally through the Invest in Dubai platform.
• In the first phase it covers non-regulated activities, including technology, consultancy, design, professional services and trading. Regulated sectors are planned for later.
• Permit holders can use their existing staff in mainland operations.

A seller of consumer goods should check two things before relying on the permit. First, whether your zone license is a Dubai Unified License, because the permit is for DUL holders. Second, whether your product category is regulated, because only non-regulated activities are covered in the first phase. DET's page does not list which activities count as regulated, so ask DET to confirm your activity in writing.

When is a branch or Dual License better than a permit?

The permit is the only route with a published fee. A DET branch license is valid for one year and renewable. Dubai.ae does not publish a validity period for the Dual License, so ask your zone. For a seller with steady mainland sales, annual renewal avoids the permit's six-month cycle. Compare, in writing, the total over twelve months: the permit at AED 5,000 for each half-year is AED 10,000 a year on the published fee. The branch fee is not published, so this comparison is open until DET or your zone quotes it.

The Dual License is described by Dubai as letting a free zone company extend to the mainland without leasing additional office space, available with five free zones. Ask your zone whether it is one of the five.

Can you sell on the mainland through a distributor instead?

IFZA's e-commerce guide says that with an e-commerce license you can sell to the entire UAE, but a distributor in the mainland is required. In a distributor model, your free zone company sells stock to a mainland-licensed company, which then sells to customers. SPC Free Zone's FAQ also states that free zone companies "may have restrictions on trading directly within the mainland market". Zone marketing pages differ on how this works, so do not treat a zone's sales page as the legal answer; ask DET and your zone, and get the arrangement in a written contract with the distributor.

For imports from the zone to the mainland there are also customs steps; see free zone to mainland customs duty.

What does mainland activity do to your tax position?

Dubai says that free zone companies engaging in mainland activities under the permit will be subject to 9% corporate tax on related revenues, and must keep separate financial records in line with Federal Tax Authority (FTA) requirements. That is a reason to model the cost before you switch. A free zone company that expected a 0% rate on all income should read corporate tax for free zone e-commerce companies and UAE corporate tax for sellers.

VAT works separately from the license: the mandatory registration threshold is AED 375,000 of taxable supplies and imports. See UAE VAT registration for sellers.

This is general information, not tax or legal advice. Confirm with DET, your free zone authority and the FTA or a registered tax agent.

Worked example: a free zone seller with some mainland orders

Illustrative only. A Dubai free zone company with a DUL sells non-regulated goods on a marketplace and expects steady mainland demand. Using the published permit fee:

Mainland revenue would be taxed at 9% on related revenues, with separate books. If mainland sales are small and occasional, the distributor route may cost less than any license; if they are your main market, a mainland license may suit you better, as in free zone vs mainland.

FAQ

Can a free zone company sell in mainland UAE? In Dubai, yes, if it holds a DET license or permit under Executive Council Resolution No. 11 of 2025. A company can also sell through a mainland distributor. Outside Dubai, other emirates' authorities must approve operations.

How much is the Dubai free zone mainland permit? AED 5,000 for six months, renewable for the same fee every six months. It is for eligible free zone companies with a Dubai Unified License and is applied for digitally through the Invest in Dubai platform.

Does the permit cover regulated products? Not in the first phase. DET says it initially covers non-regulated activities including technology, consultancy, design, professional services and trading, and plans to extend to regulated sectors later. Check your product category with DET.

Do I pay corporate tax on mainland sales from a free zone company? DET says free zone companies engaging in mainland activities under the permit are subject to 9% corporate tax on related revenues and must keep separate financial records. Confirm your own position with the FTA.

What is a Dual License? Dubai describes it as letting a free zone company extend its presence to the mainland without leasing additional office space, and says it is currently available with five free zones. Ask your zone if it offers one.

Is there a deadline for free zone companies already selling on the mainland? The resolution says existing establishments must comply within one year of its effective date, and DET's Director General may extend that by one year. Check the effective date and any extension with DET.

Does this apply to Sharjah or Abu Dhabi free zones? No. Resolution No. 11 is a Dubai resolution, and operations outside Dubai need separate approval from the authorities in the relevant emirate.

What to do next

Ask your free zone and DET three things in writing: whether you hold a Dubai Unified License, whether your product is a non-regulated activity, and the fee for a branch or Dual License. Then compare it with the AED 10,000 a year permit cost and the distributor route. When your structure is settled, Blooprint can run your Amazon.ae account management and noon account management. The licensing overview is in what license you need to sell online in the UAE.