One Freezone Passport allows companies licensed in any Dubai free zone to operate across multiple Dubai free zones under a single licence. It eliminates duplicate paperwork, reduces expansion costs, and speeds up approvals while preserving the incentives that have made free zones central to Dubai’s growth story.
One Licence Across Dubai’s Network of Free Zones
Dubai’s free zones have long been magnets for global investors, offering 100% foreign ownership, tax exemptions, and world-class infrastructure. Yet for all their strengths, they operated in silos. In some cases, a business licensed in one zone had to repeat the incorporation process if it wanted to expand into another. That meant duplicate licences, extra fees, and months of additional setup.
The One Freezone Passport, launched by the Dubai Free Zones Council (DFZC) in July 2025, removes these barriers. A company can now extend its operations into other Dubai free zones under a single licence. Expansion that once meant months of paperwork can now be achieved in a matter of days.
The reform is not theoretical. Within days of the launch, Louis Vuitton became the first multinational to use the system, adding a regional headquarters in One Za’abeel (DWTC Authority) to its existing JAFZA warehouse. The process was completed in just five working days, demonstrating how seamlessly the system can function when authorities coordinate effectively.
Mapping the Free Zone Ecosystem
Dubai is home to more than 20 active free zones, each designed with a sectoral focus. JAFZA anchors global logistics near the port, while DMCC serves commodities and corporate offices. DAFZ connects to DXB Airport. Meanwhile, Dubai Internet City, Media City, and the Dubai Design District drive the creative and digital industries.
Until 2025, operating in two of these zones meant creating two legal entities. Now, One Freezone Passport links them into a single ecosystem.
This reform enables companies to align their business functions with the most strategic location, without multiplying bureaucracy—a flexibility that gives Dubai a competitive edge over global competitors.
Who Can Use the One Freezone Passport?
The system is designed to be broad, but it does have rules.
- Existing free zone companies are eligible, provided they already hold a Dubai licence.
- Activities must remain consistent across all zones. A trading firm cannot use the Passport to branch into unrelated services.
- Ownership and management must be the same in every zone. Shareholders, directors, and managers cannot change from one zone to another.
Sectors Outside the Scope
Not all activities are covered. Retail shops open to the public, financial institutions such as banks and insurers, and certain regulated professional services remain excluded. These carve-outs reflect regulatory sensitivities; however, for industries such as logistics, e-commerce, manufacturing, technology, and media, the scheme is fully accessible.
How the Application Process Works
Applying for the One Freezone Passport begins with your primary free zone—the zone where your company is already licensed.
You submit an expansion request specifying the secondary zone, provide supporting documents, and DFZC coordinates the approvals. Once cleared, you can lease premises and start operations in the new zone.
Approvals are fast. Government statements confirm that qualifying applications can be processed in under a week. The Louis Vuitton case proved it can be done in as little as five days. Compared to the older system, where secondary incorporations often took months, this speed represents a significant competitive advantage.
What It Costs to Expand
Expansion under the Passport still requires investment, but it avoids the heavy duplication of the past.
Most companies pay between AED 17,500 and AED 45,000 in initial fees, depending on the facilities and number of zones involved.
- A startup expanding from Dubai Silicon Oasis into Dubai Media City may only need a small office, keeping costs closer to AED 20,000.
- An SME importing through DAFZ but adding warehousing in JAFZA could spend AED 30,000–35,000, plus warehouse rent.
- A multinational opening both a logistics base and a regional HQ may budget nearer the top of the range.
Recurring expenses remain: rent, utilities, insurance, and staff visas for each zone. But the savings are substantial. Under the old system, an SME would pay two full licence fees, two incorporation packages, and two sets of corporate compliance costs.
One logistics firm that moved into a second free zone using the Passport reported saving over 40% of its projected expansion budget, largely by avoiding a second licence and duplicate auditing costs.
For entrepreneurs, these numbers matter: expansion is no longer reserved for corporations with deep pockets. The Passport makes multi-zone operations viable for smaller players.
Benefits That Go Beyond Cost
The most obvious benefit of One Freezone Passport is financial, but businesses are also reporting strategic gains.
Faster Expansion
New facilities can be licensed in days, allowing firms to seize opportunities as they arise. For startups in fast-moving industries, this agility can mean the difference between capturing a market opportunity and missing it.
Operational Optimisation
Companies can now structure their Dubai operations across zones in a hub-and-spoke model: logistics in JAFZA, finance in DMCC, HQ at DWTC, and creative teams in D3. This ability to specialise in locations strengthens efficiency and credibility with clients.
Retained Incentives
Free zone benefits remain untouched—100% foreign ownership, full repatriation of profits, and 0% corporate tax on qualifying income. These continue to apply across zones.
Global Competitiveness
By presenting its free zones as a unified platform rather than a patchwork, Dubai is differentiating itself from hubs like Singapore and Hong Kong. Neither of those markets offers sector-specific clusters working together under one system of licence recognition.
Key Restrictions Businesses Must Plan Around
The scheme is powerful but comes with safeguards.
Retail outlets remain excluded. Staff visas are still zone-specific, meaning employees cannot simply be reassigned across zones without new sponsorship. Companies must lease physical offices or warehouses in every zone they expand into—virtual offices and flexi-desks are not accepted.
Compliance obligations also remain. Each free zone retains authority over safety, HR, and sector-specific rules. A company operating in multiple zones must comply with the regulations of each zone in which it operates.
These safeguards ensure the scheme strengthens Dubai’s economy without undermining regulatory standards.
Tax, Customs and Compliance
From a tax perspective, the One Freezone Passport simplifies rather than complicates. A company remains a single taxable entity, filing one corporate tax return. Free zone businesses that qualify under the UAE’s corporate tax rules continue to benefit from the 0% rate on eligible income, provided they meet substance requirements.
Operating across multiple zones can even strengthen compliance. Physical presence in more than one location supports economic substance tests by demonstrating real activity.
Customs rules remain unchanged: goods can move freely between Dubai free zones without duties. Duties only apply when products enter the mainland of the UAE.
Managing Staff and Visas Across Multiple Free Zones
Licensing has been unified, but labour sponsorship has not. Each zone still controls its own visa quotas.
That means a company expanding into a second zone must open a personnel file there and sponsor staff under that zone. Existing employees cannot simply transfer across.
Consider a mid-sized e-commerce company based in DAFZ. When it added a fulfilment hub in JAFZA, the warehouse team had to be hired under JAFZA visas even though the company already had office staff in DAFZ. The duplication increased HR complexity, but the company still came out ahead compared to setting up a completely new entity.
Some firms adopt a hybrid model: keeping their main teams in the primary zone while sponsoring a small compliance or operations team in the secondary zone to meet local requirements.
This is an area businesses hope to evolve in the future. If labour rules eventually align with the unified licence, the Passport will deliver even greater efficiency. Until then, HR planning will remain a crucial part of the expansion process.
Real and Hypothetical Models
Louis Vuitton
- Primary zone: JAFZA for warehousing and distribution
- Expansion: DWTC Authority for a regional headquarters at One Za’abeel
- Timeline: Five days from application to approval
- Result: Combined logistics and corporate functions under one licence
E-Commerce SME
- Primary zone: DAFZ for airside access to DXB cargo
- Expansion: DMCC for sales and trading operations
- Result: Faster imports with a premium central office to host partners
Media Production House
- Primary zone: Dubai Media City for studios and content teams
- Expansion: Dubai Design District for creative staff and showrooms
- Result: Collaboration across two creative hubs without doubling licensing costs
These examples show how both multinationals and smaller firms can use the Passport strategically to optimise location choices.
Choosing the Right Market-Entry Path
One Freezone Passport is not the only path.
- The traditional multi-licence model is slower and more costly, but some firms that have already invested in it may choose to maintain separate entities.
- Dual-licensing with the Dubai mainland remains essential for companies that require direct sales on the mainland.
- Expanding into other emirates—Abu Dhabi, Sharjah, Ras Al Khaimah—still requires separate licences, as the Passport currently applies only within Dubai.
For businesses planning a multi-zone presence inside Dubai, however, the Passport is now the most efficient option.
Implementation Gaps and What Comes Next for One Freezone Passport
The initiative is new, and some challenges remain.
- Inter-zone compliance systems must align smoothly. Each free zone has its own processes, and synchronising them is not trivial.
- Revenue sharing between zones must be balanced. Licence fees have historically been a major revenue stream for each zone authority. DFZC must ensure every zone benefits from the system to avoid internal competition.
- Labour mobility restrictions limit full integration. Without a unified visa system, companies must manage parallel HR structures.
Despite these hurdles, the policy aligns neatly with Dubai’s Economic Agenda D33, which aims to double the GDP by 2033.
Looking ahead, many analysts expect the scheme to expand. Other emirates may follow Dubai’s lead, or federal policymakers may explore a UAE-wide passporting system. Some even suggest the model could one day extend across the GCC, creating a single regional investment market.
If Dubai proves the system can work at scale, it could become a global benchmark for special economic zones, showing how collaboration—rather than fragmentation—attracts investment.
Bringing It All Together
The One Freezone Passport is not just a regulatory shortcut—it is a structural reform that enables Dubai’s free zones to operate as a single, connected marketplace. It gives startups speed, SMEs cost efficiency, and multinationals the ability to integrate complex operations under a single licence.
The first movers, such as Louis Vuitton, demonstrate the transformative power it can have. For others, the opportunity is clear: combine Dubai’s diverse zone strengths without multiplying costs or bureaucracy.
Take the Next Step with Virtuzone
If you are considering expanding your presence across Dubai’s free zones, Virtuzone can help you leverage the One Freezone Passport. Our specialists will assess eligibility, prepare the application, and design a cost-effective, compliant multi-zone strategy tailored to your needs.
Book a consultation today and unlock the full power of Dubai’s free zones with a single licence.
FAQs on One Freezone Passport
Who can apply?
Any Dubai free zone company with consistent activities and ownership across zones, except for retail, financial institutions, and Designated Non-Financial Businesses and Professions (DNFBPs).
How long does approval take?
Most approvals are issued in five to 10 working days.
What does it cost?
Initial fees typically range from AED 17,500 to AED 45,000, plus rent and visas in each zone.
Can staff be shared between zones?
No. Each zone still issues its own visas, so new staff must be sponsored locally.
Does this apply outside Dubai?
Not yet. Other emirates still require separate licences, but Dubai’s model may inspire broader adoption.
