Dubai has just made another groundbreaking move in the global business landscape. With the One Freezone Passport, companies licensed in one of the emirate's free zones can now operate in other zones without the need to open new licenses. This initiative, launched by the Dubai Free Zones Council (DFZC), promises to reduce bureaucracy, cut costs, and accelerate operations for global businesses.

For international companies with ambitions in the Middle East, especially in the industrial, commercial, or logistics sectors, this new development represents a unique strategic opportunity. But before diving into the benefits, it’s important to understand how it works and what precautions need to be taken.

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What is the One Freezone Passport?

The One Freezone Passport is essentially a "master" license. It allows a company registered in one of Dubai's free zones to:

• Operate in other free zones in the emirate without needing to re-incorporate the company.
• Avoid duplicate licensing fees and redundant legal procedures.
• Integrate logistics and administrative operations more efficiently.

Louis Vuitton was the first major company to adopt this model, combining operations in the Jebel Ali Free Zone (JAFZA) with an office in another zone, demonstrating its potential for large companies.

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Key strategic benefits

The new passport offers multiple advantages, including:

1. Regulatory Efficiency
   Fewer repeated processes for operating in multiple zones. Perfect for companies looking for speed and operational agility.
2. Cost Reduction
   Lower licensing fees and reduced administrative overhead. For global businesses, every dollar saved gives a competitive edge.
3. Faster Implementation
   Some licenses can be issued in days, rather than weeks or months. This reduces market entry time and accelerates expansion.
4. Simplified Taxation
   The possibility of consolidating tax records while retaining the “tax-free” incentives of the free zones, as long as the company complies with regulations.
5. Easier Geographic Expansion
   Enables the company to scale into other zones with fewer barriers, taking advantage of different locations for warehousing, distribution, and proximity to ports and airports.

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Limitations and considerations

Despite the advantages, the One Freezone Passport is not universal:

• Not all activities and sectors are eligible (e.g., retail, regulated professions, financial institutions).
• The company structure must remain the same across zones.
• Operational activities must align with the original license.
• Virtual offices or hot desks are not allowed in additional zones.
• Labor issues and work permits need to be carefully assessed, especially if relocating staff between zones.
• Customs and tax considerations still require attention, particularly for re-export operations.

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Why is this important for international companies?

For international companies interested in the Middle East or nearby regions, the One Freezone Passport offers:

• Lower entry barriers and scalability: simplified expansion without the need for new incorporations.
• Logistical Gains: strategic use of different zones for warehousing and distribution.
• Tax Competitiveness: optimization of tax incentives and cost structures.
• Strategic Advantage: the ability to quickly respond to market opportunities and adjust operations as new regulations emerge.

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Dubai in docus

The One Freezone Passport makes Dubai an even more attractive hub for global businesses. More than just reducing bureaucracy, it is a tool that makes expansion practical, cost-effective, and fast, especially for businesses that need to operate across multiple zones.

For international companies, this is a concrete opportunity to enter the Middle Eastern market with more efficiency and fewer barriers, while staying compliant and leveraging tax incentives.

Would you like to explore the potential of the One Freezone Passport for your business and learn how to take advantage of all the free zones in Dubai? Get in touch!