Practical guide · April 2026
Cross-Emirate Operations from a UAE Free Zone
Registered in RAK but selling to Dubai businesses. Free zone licence in Sharjah but your employees work in Dubai. Abu Dhabi free zone but you want a Dubai sales office. Common situations, specific rules. Here is what you need.
The short answer
UAE free zone companies can sell to UAE mainland businesses through invoicing (no permit needed), but cannot physically operate on the mainland (open a retail location, warehouse, staff-only office) without either a mainland branch or a mainland commercial agent/distributor. The exact requirements depend on your activity type.
What "Cross-Emirate Operations" Means
There are two distinct scenarios that founders often conflate:
Scenario A: Selling across
Your free zone company invoices a client in a different emirate or on the UAE mainland. A Dubai company buys services from your RAK free zone entity.
✓ Generally permitted — no special permit needed
Scenario B: Physically operating across
Your free zone company opens a retail location, warehouse, showroom, or employees physically working from a mainland Dubai office under your free zone licence.
⚠ Requires additional permits or structure
The Most Common Scenario: RAK or Sharjah Free Zone + Dubai Operations
The most frequent question: "I have a RAKEZ / SHAMS / Ajman free zone licence. Can I operate in Dubai?"
You can: Invoice Dubai clients from your free zone company
A Dubai-registered company can pay invoices from your RAK, Sharjah, or any UAE free zone entity. This is a standard commercial transaction. No special permit is required. VAT may apply depending on your activities and registration status.
You can: Work remotely from your free zone company's Dubai location
If you personally (as the founder, visa holder of the free zone) work from a co-working space, client office, or home in Dubai — this is personal work activity, not a commercial establishment. No permit needed.
You need a permit: A staffed Dubai office under your free zone licence
If your free zone company opens a dedicated office in Dubai Mainland with employees specifically based there, you need a Dubai mainland branch or dual licence. Since Dubai Executive Council Resolution No. 11 of 2025 this is no longer a grey area to ignore: DET now offers a formal route — a branch / dual licence (~AED 10,000/yr) or a temporary permit (~AED 5,000 / 6 months) — and firms already operating on the mainland without authorisation had to regularise by 3 March 2026. Operating a staffed mainland office without one is now a clear compliance breach, not a tolerated ambiguity.
Not permitted: Retail sales to UAE public from a mainland location under free zone licence
Opening a retail store, showroom, or any customer-facing commercial location in Dubai Mainland under your free zone licence is not permitted. You would need a Dubai Mainland DED licence or a branch of your free zone company.
The Mainland Branch Route: What It Costs
If you genuinely need to operate physically on the UAE mainland (sales staff, showroom, warehouse, or retail), opening a mainland branch of your free zone company is the cleanest path.
Dubai Mainland Branch Costs (Approximate 2026)
Figures are indicative — costs vary by activity classification, DED department, and office size chosen.
Key consideration
A mainland branch requires a physical office in Dubai Mainland — you cannot use your free zone's virtual address. The minimum realistic additional cost is AED 40,000–60,000/year (branch licence + smallest mainland office). For many businesses, this triggers the question: should I have just set up on the mainland from the start?
The Mainland Permit Route (Selected Free Zones)
Some UAE free zones now offer a "mainland trading permit" — allowing free zone companies to conduct limited mainland commercial activity without setting up a full DED branch. This is cheaper but more restricted.
DMCC
DMCC Mainland Trading Permit
Cost: AED 5,000–8,000/yr
Trading activities only; limited to DMCC permitted activities
JAFZA
JAFZA Mainland Trading Licence
Cost: AED 10,000–15,000/yr
Trading + light services; requires dedicated mainland office
Dubai South
Dubai South Mainland Access
Cost: AED 8,000–12,000/yr
Logistics and trade activities
RAKEZ
RAKEZ Mainland Trading Permit
Cost: AED 5,000–9,000/yr
Limited to trade activities; no retail
Not all free zones offer mainland permits — use the Zone Compare browse tool with "Mainland permit available" filter to see all qualifying zones.
Special Situations
Abu Dhabi Free Zone + Dubai Operations
ADGM and Abu Dhabi free zones are in Abu Dhabi Emirate — adding Dubai physical operations requires either a DED Dubai branch or a Dubai free zone secondary registration. This is more complex than same-emirate cross-suburb operations. ADGM specifically has a streamlined branch registration process for this.
DIFC or ADGM + UAE Mainland Clients
DIFC and ADGM operate under separate regulatory frameworks (DFSA and FSRA respectively). For regulated financial activities, you must obtain the relevant mainland operating licence or restrict your UAE mainland activities carefully. Both DIFC and ADGM have dedicated relationship managers for cross-jurisdiction advice.
Dual Licence (Dubai Only)
Some Dubai free zones participate in the DED-Trader programme or have dual-licence arrangements that allow free zone companies to conduct limited mainland activities without a full branch. DMCC, Dubai South, and DAFZA are examples. The cost is typically AED 6,000–12,000/year additional.
E-commerce Selling to UAE Customers
Online sales to UAE consumers via a free zone entity are generally permitted without a mainland licence — you are invoicing from the free zone, and the goods or services are delivered electronically or through logistics. Dubai Commercity and JAFZA have e-commerce specific activities that streamline this.
Which Structure Should You Choose?
If you need:
Selling services to UAE mainland companies
Structure:
Free zone only — no additional permit needed
If you need:
Selling products to UAE mainland companies (B2B)
Structure:
Free zone + mainland trading permit (or 3PL logistics partner)
If you need:
Retail store / showroom for UAE consumers
Structure:
Mainland DED licence required (or full branch)
If you need:
Warehouse / distribution in UAE
Structure:
JAFZA or JAFZA-adjacent (best logistics infrastructure); or mainland 3PL partner
If you need:
Staff physically based in a different emirate
Structure:
Staff on your free zone visa can work anywhere in the UAE — no permit needed for work activity
If you need:
Dedicated office (not co-working) in a different emirate
Structure:
Branch licence required for the mainland emirate
Find the right zone for your structure
Zone Compare scores every UAE & GCC free zone across 6 dimensions including mainland permit availability. Run the wizard with your activity and emirate preference to see which zones best support your cross-emirate needs.