New License Categories Introduced

To align with economic diversification goals, many Free Zones — including Dubai Airport Free Zone (DAFZA) and Sharjah Publishing City Free Zone (SPC) — have introduced new license categories in 2025.

These include:

• AI & Tech Innovation Licenses

• Green Business Licenses

• E-commerce and Digital Trade Licenses

• Creative & Media Licenses

This means entrepreneurs now have more flexibility to select a license type that truly fits their business model.

Corporate Tax Clarifications for Free Zone Entities

The UAE Corporate Tax (effective since 2023) continues to apply at 0% for qualifying Free Zone entities, provided certain conditions are met in 2025.

Here’s a quick reminder:

• The company must maintain adequate substance in the Free Zone.

• Transactions with mainland UAE may be taxable at 9%.

• Businesses must submit audited financial statements to retain the 0% rate.

Tip: Always consult your tax advisor to confirm whether your company qualifies for the 0% tax rate.

Enhanced Digital Compliance Platforms

Many Free Zones are moving toward fully digital license renewals, visa applications, and government approvals.
This step supports the UAE’s smart transformation strategy and reduces paperwork delays.

Example: Dubai Multi Commodities Centre (DMCC) now allows online submission of lease agreements and shareholder approvals, all through a single portal.

Easier Cross-Free-Zone Collaboration

Previously, working with another Free Zone business required multiple approvals.
In 2025, the UAE government has simplified cross-Free-Zone collaboration, allowing companies to share services, logistics, and projects with minimal red tape.

This helps small and medium businesses expand faster across the Emirates without opening separate entities.