Hedges was among more than 700 prisoners pardoned by UAE President Sheikh Khalifa bin Zayed Al-Nahyan on the occasion of National Day.
"Mr. Hedges will be permitted to leave the UAE once formalities are completed," an official statement said.
The 31-year-old doctoral candidate was sentenced to life last week after an Abu Dhabi court found him guilty of "spying for or on behalf of" the UK government.
Hedges has always claimed his innocence, maintaining he was researching the UAE’s security strategy for his doctoral thesis at Durham University.
UK says they are grateful for it.
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