Hi Marco,

I'm Himanshi Dawra, and this is one of the biggest areas of confusion for Free Zone businesses.

The answer is yes, you can sell goods to mainland UAE, but not always directly. A Free Zone licence mainly allows you to operate within your Free Zone and internationally. To legally supply goods into the mainland, you'll need to use an approved route.

The most common options are:

• Work with a licensed mainland distributor or commercial agent, who imports the goods and completes the local sale.
• Open a mainland branch of your existing Free Zone company, where permitted by the relevant emirate's regulations.
• Sell to another mainland business (B2B), provided the mainland buyer handles customs clearance and complies with the import requirements.

Another important point to keep in mind is customs. When goods move from a UAE Free Zone into the mainland, they are generally subject to 5% customs duty, unless an exemption applies under the relevant regulations.

If you're planning to establish a direct presence in mainland Dubai, there are also expansion options such as mainland branch licences or activity permits. Depending on the licence and activity, the related government fees are typically in the range of AED 5,000*–10,000*.

However, if your goal is to open a retail shop where customers can walk in and buy products directly, you'll generally need the appropriate mainland licence or branch approval. A standard Free Zone licence on its own doesn't permit direct retail sales to mainland consumers.

Before choosing the right structure, it's worth considering your sales model. The best solution for a wholesale importer may be different from that of an e-commerce brand or a retail business.