On 22 July 2025, the Dubai Free Zones Council (DFZC) introduced the Free Zone One Passport initiative – a unified licensing framework that allows businesses licensed in one Dubai free zone to operate across participating zones without obtaining separate trade licenses or undergoing a full re-incorporation.
This reform is a significant milestone in Dubai’s ongoing efforts to strengthen its reputation as one of the most business-friendly cities in the world. It also supports the goals of the Dubai Economic Agenda D33, which aims to double the emirate’s GDP by 2033.
Why this matters
The initiative is designed to reduce administrative barriers and accelerate growth for companies of all sizes. Key benefits include:
- Faster market entry: Entrepreneurs and corporates can establish presence in multiple zones without long setup timelines.
- Cost efficiency: Reduced duplication of licensing and compliance processes means measurable savings.
- Agility: Businesses can scale quickly, adapting strategies across logistics, manufacturing, technology, or finance.
- Collaboration: A unified framework encourages cross-sector partnerships and innovation.
For startups, this means a shorter journey from idea to execution. For multinationals, it allows more streamlined regional strategies without being slowed down by bureaucracy.
How it works
Traditionally, a company would require a separate license for each free zone—a process that was both time-consuming and costly. The One Free Zone Passport changes this by introducing a single regulatory identity, enabling businesses to expand operations across multiple zones under one license.
The pilot phase has already seen high-profile fashion brands onboarded, with early adoption across JAFZA and DWTC Free Zone. This demonstrates both scalability and practicality for SMEs and multinational firms alike.
Despite the integration, Dubai continues to retain the hallmark advantages of its free zones:
- 100% foreign ownership
- Access to world-class infrastructure
- Tax benefits, including corporate tax exemptions for eligible activities
Key considerations for businesses
While the initiative is transformative, certain restrictions apply:
- Excluded sectors: Retail, DNFBPs (Designated Non-Financial Businesses and Professions), and regulated financial institutions are not eligible.
- Activity alignment: Activities must remain identical between the primary and secondary licenses.
- Governance consistency: Shareholders, directors, and managers must remain the same.
- Facility restrictions: Virtual offices, flexi-desks, or hot desks are not permitted under the secondary license.
- Professional activities: Cannot be linked to warehousing.
Sen & Ray’s perspective
At Sen & Ray Dubai, we see this initiative as more than an administrative reform—it is a structural step toward creating a more connected and collaborative free zone ecosystem.
For investors and business owners, this translates into:
- Simplified expansion strategies
- Quicker access to infrastructure across zones
- Stronger alignment with Dubai’s future-focused economic agenda
We are closely monitoring the rollout of the Free Zone One Passport across other participating zones. Businesses planning expansion should assess their eligibility carefully, align activities, and prepare compliance frameworks to take full advantage of the new system.