By Sakanihomes
Mainland vs Free Zone: Where should you set up your business in Dubai?
If you're planning to start a business in Dubai, one of the most important decisions you'll face is whether to register in the mainland or a free zone.
This choice isn’t just about paperwork, it affects everything from how and where you operate, to what kind of office or shop you can lease, and even who your clients can be.
Here’s a clear breakdown to help you make the right call for your business in 2025.
Mainland vs Free Zone: What’s the Real Difference?
At a high level:
A mainland license is issued by Dubai's Department of Economy and Tourism (DET) and allows your company to operate anywhere in the UAE, with no geographical limitations.
A free zone license is issued by a specific free zone authority (like DMCC, DAFZA, DIFC, or Tecom) and restricts your business activity to within that zone or international markets. You generally can’t sell directly to the local UAE market unless you work with a distributor or open a mainland branch.
Where Can You Operate?
This is the first major decision point:
Mainland license → You can open a shop, clinic, or office in most commercial areas across Dubai from Business Bay to Barsha, Deira, Al Quoz, and beyond.
Free zone license → You’re limited to specific properties within the free zone (like JLT for DMCC or Dubai Media City for Tecom license holders). You can’t lease a shop in Downtown or a warehouse in Al Quoz with a free zone license unless it's a DET-approved hybrid building (rare and more expensive).
Who Should Choose a Mainland License?
A mainland license is the better option if:
You want to serve customers across Dubai and the UAE directly
You’re opening a retail shop, restaurant, clinic, or beauty salon
You need a street-facing space or operate in a busy commercial area
You want more flexibility for future growth, hiring, and B2B work
Mainland licensing also gives you access to a wider pool of commercial spaces, including:
Office towers (Business Bay, Sheikh Zayed Rd)
Ground-floor retail shops (JVC, Al Barsha, Deira)
Warehouses and logistics hubs (Al Quoz, Ras Al Khor, DIP)
Who Should Choose a Free Zone License?
A free zone license might suit you if:
You’re a tech startup, consultant, creative freelancer, or international trader
You don’t need a shopfront and plan to work remotely or from an office
You’re focused on import/export, logistics, or e-commerce
You want a fast setup with 100% foreign ownership and simplified regulation
Free zones like DMCC, DIFC, and DAFZA also offer:
Premium offices with shared facilities
In-zone tax advantages
Dedicated startup hubs and accelerators
But keep in mind: your operations are legally confined to that zone, and you’ll need extra approvals or mainland branches if you want to expand to the broader UAE market later.
Cost & Ownership Considerations
Free zone licenses often include bundled office space and can be cheaper at entry-level, especially for solo founders or small teams.
Mainland licenses used to require a local partner, but since 2021, most professional and commercial activities allow 100% foreign ownership.
Where you save money upfront may cost you later in flexibility, especially if your business grows faster than expected and you need to expand into new zones or retail areas.
What Happens If You Choose the Wrong One?
Let’s say you get a free zone license, then realize you want to open a salon in JVC, you can’t. You’d need to cancel or open a new mainland license, find a new space, and restart approvals.
Likewise, if you start with a mainland license and plan to work 100% remotely for US clients, you may be paying for flexibility you don’t need.
That’s why choosing based on your business model, client base, and space needs from day one is critical.
Final Summary: Choose Based on What You’re Building
Go Mainland if you:
Need a physical space to operate (shop, clinic, salon)
Want to sell to local customers across Dubai
Plan to expand, hire, and grow within the UAE market
Need access to a broader selection of commercial spaces
Go Free Zone if you:
Work online, freelance, or in international trade
Want a fast, low-hassle setup
Only need a desk or small office
Don’t need to sell directly in the local market (yet)
How Sakani Helps New Businesses Choose the Right Space
At Sakani, every commercial listing shows:
Whether the property is Mainland, Free Zone, or DET-approved
What license types are compatible with the space
What kind of business activities are allowed, whether you're opening a salon, a consulting firm, or a dark kitchen
So you don’t waste time falling in love with a space your license won’t cover.