List of Abu Dhabi Free Zones

Abu Dhabi hosts eight prominent free zones, each catering to different industries and business needs. Below is a detailed overview of each:

1. Abu Dhabi Airport Free Zone (ADAFZ)

Overview: ADAFZ is strategically located near Abu Dhabi International Airport, making it ideal for businesses involved in logistics and aviation.

Permitted Activities:

• Maintenance, Repair, and Overhaul (MRO)
• Aviation and Aerospace Services
• Logistics and Warehousing
• Marketing and Event Management
• ICT and Technology Services

Permitted Entities:

• Limited Liability Companies (LLCs)
• Branch Companies

2. KEZAD Group

Overview: Part of the AD Ports Group, KEZAD Group operates integrated economic zones, providing business services, accommodation, and industrial real estate solutions.

Permitted Activities:

• Manufacturing and Processing
• Logistics and Distribution
• Automotive Services
• Food Processing
• Specialty Chemicals

Permitted Entities:

• Serviced Land Plots
• Pre-Built Warehouses
• Build-to-Suit Facilities

3. Masdar City Free Zone

Overview: Masdar City Free Zone is renowned for its sustainability, offering a green business environment with cutting-edge infrastructure.

Permitted Activities:

• Renewable and Sustainable Energy
• Cleantech and ICT
• Oil and Gas Services
• Healthcare and Educational Sectors

Permitted Entities:

• Limited Liability Companies (LLCs)
• Branch Companies
• Non-Profit Associations

4. Abu Dhabi Global Market Free Zone (ADGMFZ)

Overview: ADGMFZ operates under English laws, providing a reliable legal framework for businesses, especially in the financial sector.

Permitted Activities:

• Banking and Financial Services
• Fintech and Investment Advisory
• Real Estate and Construction
• Consulting and Marketing

Permitted Entities:

• Private Companies
• Public Shareholding Companies
• Limited Liability Partnerships (LLPs)

5. Khalifa Industrial Zone Abu Dhabi (KIZAD)

Overview: KIZAD is the first integrated trade, logistics, and industrial free zone, offering expansive facilities for large-scale operations.

Permitted Activities:

• Manufacturing and Assembly
• Import and Export
• Economic Consulting
• Logistics Support

Permitted Entities:

• Limited Liability Companies (LLCs)
• Branch Companies

6. Twofour54

Overview: Twofour54 is focused on the creative and media industries, providing a gateway for media clusters in Abu Dhabi.

Permitted Activities:

• Animation and Advertising
• Content Creation and Publishing
• Gaming and Graphic Design
• Broadcasting and Promotional Activities

Permitted Entities:

• Limited Liability Companies (LLCs)
• Branch Companies

7. Industrial City of Abu Dhabi (ICAD)

Overview: ICAD offers specialized facilities for heavy industries, manufacturing, and logistics, supporting a diverse range of business activities.

Permitted Activities:

• Heavy Manufacturing
• Construction Services
• Logistics and Warehousing
• Trading and Service Providers

Permitted Entities:

• Limited Liability Companies (LLCs)
• Branch Companies

8. Higher Corporation for Specialized Economic Zones (ZonesCorp)

Overview: ZonesCorp manages several specialized free zones, providing tailored solutions for various industries including metals, polymers, and food processing.

Permitted Activities:

• Metals and Polymers Processing
• Food and Beverage Manufacturing
• Automotive Services
• Specialty Chemicals

Permitted Entities:

• Limited Liability Companies (LLCs)
• Branch Companies

Types of Legal Entities in Abu Dhabi Free Zones

When planning to establish your business in Abu Dhabi Free Zones, selecting the right legal entity is a crucial step. The type of legal entity you choose will determine your company’s ownership structure, liability, taxation, and operational flexibility. Abu Dhabi Free Zones offer a variety of legal entities to cater to different business needs and preferences. This section provides a comprehensive overview of the available legal entities, helping you make an informed decision for your business setup.

1. Free Zone Limited Liability Company (FZ LLC)

Description: A Free Zone Limited Liability Company (FZ LLC) is one of the most popular types of legal entities in Abu Dhabi Free Zones. It operates as an independent legal entity separate from its shareholders, providing limited liability protection.

Key Features:

• Ownership: 100% foreign ownership is allowed, eliminating the need for a local partner.
• Shareholding: Can be formed with one or more shareholders, who can be individuals or corporate entities.
• Liability: Shareholders’ liability is limited to their share capital, protecting personal assets.
• Capital Requirements: Varies by free zone. For example, KIZAD requires a minimum paid-up capital of AED 150,000.

Advantages:

• Full Control: Complete control over business operations without interference from local partners.
• Tax Benefits: Enjoy tax exemptions on corporate and personal income.
• Repatriation: Full repatriation of profits and capital is permitted.
• Ease of Setup: Streamlined registration process through the free zone’s one-stop-shop services.

Ideal For:

• Startups, SMEs, and multinational companies seeking full ownership and limited liability protection.

2. Branch of a Foreign Company

Description: A branch office operates as an extension of the parent company, conducting the same business activities within the free zone.

Key Features:

• Ownership: 100% owned by the parent company.
• Liability: The parent company bears full responsibility for the branch’s obligations.
• Business Activities: Limited to the activities approved by the parent company.

Advantages:

• Brand Consistency: Maintains the brand identity and business operations of the parent company.
• Market Expansion: Facilitates expansion into the UAE market without establishing a separate legal entity.
• Cost-Effective: Lower setup costs compared to establishing a new company.

Ideal For:

• International companies looking to establish a presence in Abu Dhabi while maintaining their global operations.

3. Branch of a UAE Company

Description: Similar to a branch of a foreign company, this entity allows UAE-registered companies to expand their operations within Abu Dhabi Free Zones.

Key Features:

• Ownership: Fully owned by the UAE-based parent company.
• Liability: The parent company is fully liable for the branch’s obligations.
• Business Activities: Must align with the parent company’s activities and comply with free zone regulations.

Advantages:

• Seamless Integration: Leverages the parent company’s existing infrastructure and reputation.
• Flexibility: Allows for a broader range of business activities within the free zone.

Ideal For:

• UAE-based companies aiming to expand their footprint in Abu Dhabi without creating a new legal entity.

4. Freelance License

Description: A freelance permit allows individuals to operate independently under their personal name, ideal for consultants, writers, and other solo professionals.

Key Features:

• Ownership: Sole ownership; no need for partners or shareholders.
• Liability: Personal liability; limited to the individual’s assets.
• Business Activities: Typically limited to consultancy, media, and other professional services.

Advantages:

• Cost-Effective: Lower setup and operational costs compared to establishing a company.
• Simplicity: Simplified registration process with fewer documentation requirements.
• Flexibility: Ability to operate under personal branding without a company name.

Ideal For:

• Independent professionals, freelancers, and consultants seeking a straightforward business setup.

5. Free Zone Establishment (FZE)

Description: A Free Zone Establishment (FZE) is a single-shareholder entity, similar to an FZ LLC but with only one owner.

Key Features:

• Ownership: 100% foreign ownership.
• Shareholding: Single shareholder, who can be an individual or a corporate entity.
• Liability: Limited to the share capital, offering protection to the sole shareholder.

Advantages:

• Complete Control: Full decision-making authority with a single shareholder.
• Tax Benefits: Enjoy similar tax exemptions as FZ LLCs.
• Repatriation: Full repatriation of profits and capital is allowed.

Ideal For:

• Solo entrepreneurs and single-shareholder businesses looking for full ownership and limited liability.

6. Free Zone Public Shareholding Company (FZPSC)

Description: A Free Zone Public Shareholding Company (FZPSC) is designed for larger businesses that intend to have their shares publicly traded.

Key Features:

• Ownership: 100% foreign ownership.
• Shareholding: Can issue shares to the public, similar to a public company.
• Liability: Limited to the share capital.

Advantages:

• Capital Raising: Ability to raise capital through public share issuance.
• Brand Visibility: Increased visibility and credibility by being a public company.
• Growth Opportunities: Enhanced opportunities for expansion and investment.

Ideal For:

• Large enterprises and businesses planning to go public and seeking substantial capital investment.

Choosing the Right Legal Entity

Selecting the appropriate legal entity is a critical step in the company formation process in Abu Dhabi Free Zones. Here are some factors to consider:

• Business Structure: Determine whether you need a single-shareholder entity (FZE), multiple shareholders (FZ LLC), or a branch office.
• Liability: Assess the level of liability protection you require. LLCs and FZEs offer limited liability, while branch offices do not.
• Ownership: If you prefer 100% ownership, free zones are ideal as they allow complete foreign ownership without the need for a local partner.
• Business Activities: Ensure that the legal entity type supports your intended business activities and complies with free zone regulations.
• Cost: Consider the setup and operational costs associated with each entity type. Freelance licenses are more cost-effective compared to LLCs and branches.

Benefits of Choosing the Right Legal Entity

Choosing the correct legal entity not only ensures compliance with local laws but also maximizes your business’s potential. Here are some benefits:

• Tax Efficiency: Legal entities like FZ LLCs and FZEs offer significant tax benefits, including exemptions from corporate and personal income taxes.
• Liability Protection: Limited liability entities protect personal assets, reducing financial risk.
• Ease of Operation: Entities like FZ LLCs and FZE provide a streamlined setup process, enabling quicker market entry.
• Investment Attraction: Transparent and favorable legal structures attract more foreign investment, fostering business growth.
• Reputation and Credibility: Establishing a recognized legal entity enhances your company’s reputation and credibility in the market.

Business Setup Process in Abu Dhabi Free Zones

Setting up a business in Abu Dhabi Free Zones is straightforward and efficient. Follow these steps to establish your company seamlessly.

1. Determine the Type of Business Activity

Identify the primary activities your business will engage in, as each free zone has specific permitted activities.

2. Choose a Legal Entity Type

Select the appropriate legal structure (FZ LLC, branch office, freelance license) based on your business needs and ownership preferences.

3. Register Your Trade Name

Choose a unique trade name and ensure it complies with local regulations. The name should not infringe on existing trademarks or contain restricted terms.

4. Apply for a Business License

Submit your business license application based on the chosen activities. The type of license varies (commercial, consultancy, industrial, etc.).

5. Choose an Office Space

Select suitable office space, whether it’s a serviced desk, dedicated office, or a build-to-suit facility, depending on your business requirements.

6. Obtain Pre-Approvals and Register Your Company

Submit necessary documents for pre-approval, complete the registration process, and secure your business license.

7. Licensing and Visa Process

Complete the licensing formalities and initiate the visa process for your employees and stakeholders.

Cost of Setting Up a Business in Abu Dhabi Free Zones

Establishing a business in Abu Dhabi Free Zones offers numerous advantages, including 100% foreign ownership, tax exemptions, and strategic locations. However, understanding the costs involved is essential for effective financial planning and ensuring a smooth setup process. This section provides a detailed breakdown of the various costs associated with setting up a business in Abu Dhabi Free Zones.

License Fees

One of the primary costs when setting up a business in Abu Dhabi Free Zones is the business license fee. The type of license you require depends on your business activities and the specific free zone you choose. Here’s a breakdown of typical license fees across various free zones:

Free Zone	License Type	Cost (AED)
Abu Dhabi Airport Free Zone (ADAFZ)	Commercial License	AED 15,000 – AED 50,000
KEZAD Group	Industrial License	AED 20,000 – AED 60,000
Masdar City Free Zone	Renewable Energy License	AED 10,000 – AED 40,000
Abu Dhabi Global Market (ADGMFZ)	Financial Services License	AED 30,000 – AED 70,000
Khalifa Industrial Zone Abu Dhabi (KIZAD)	Trade License	AED 10,000 – AED 30,000
Twofour54	Media License	AED 12,000 – AED 45,000
Industrial City of Abu Dhabi (ICAD)	Manufacturing License	AED 18,000 – AED 55,000
ZonesCorp	Specialized Industry License	AED 25,000 – AED 80,000

Note: License fees may vary based on specific requirements and business activities. It’s advisable to consult with a business setup consultant in Dubai for accurate pricing.

Office Space Costs

The cost of office space is another significant factor in your business setup budget. Abu Dhabi Free Zones offer various options to accommodate different business needs and budgets:

• Serviced Offices: Fully furnished and equipped offices available for rent, ideal for startups and small businesses looking for flexibility.
  • Cost: Starting from AED 15,000 annually
• Dedicated Offices: Private office spaces with customizable options based on your requirements.
  • Cost: Starting from AED 30,000 annually
• Build-to-Suit Facilities: Custom-designed office spaces tailored to your specific needs, ideal for larger businesses and enterprises.
  • Cost: Pricing varies based on specifications and size

Registration Fees

Registering your company in a free zone involves several administrative costs. These fees cover the processing of your business name, trade license, and other necessary registrations.

• Trade Name Registration: AED 1,000 – AED 3,000
• Company Registration Fees: AED 5,000 – AED 10,000
• Document Attestation: AED 500 – AED 2,000

Visa Fees

If you plan to hire employees or need visas for yourself and your family, visa fees will be a part of your setup costs. Each visa type has different costs associated:

• Employment Visa: AED 3,000 – AED 7,000 per visa
• Dependent Visa: AED 2,500 – AED 5,000 per visa
• Investor Visa: AED 4,000 – AED 8,000 per visa

Additional Costs

Beyond the primary fees, there are other costs to consider when setting up a business in Abu Dhabi Free Zones:

• Legal Fees: For drafting contracts, agreements, and ensuring compliance, legal fees can range from AED 2,000 – AED 10,000.
• Business Plan Development: If required by the free zone authority, developing a comprehensive business plan might cost between AED 1,000 – AED 5,000.
• Bank Account Opening: Some free zones require a bank reference letter or may charge fees for opening a corporate bank account.
• Miscellaneous Fees: These can include costs for office equipment, utilities, internet services, and other operational expenses.

Comparative Costs Across Free Zones

Understanding the cost differences between various free zones can help you choose the most suitable option for your business:

Cost Component	ADAFZ	KEZAD Group	Masdar City	ADGMFZ	KIZAD	Twofour54	ICAD	ZonesCorp
License Fees	AED 15k – 50k	AED 20k – 60k	AED 10k – 40k	AED 30k – 70k	AED 10k – 30k	AED 12k – 45k	AED 18k – 55k	AED 25k – 80k
Serviced Office	AED 15k+	AED 20k+	AED 10k+	AED 30k+	AED 10k+	AED 12k+	AED 18k+	AED 25k+
Dedicated Office	AED 30k+	AED 40k+	AED 20k+	AED 50k+	AED 20k+	AED 25k+	AED 30k+	AED 35k+
Build-to-Suit	Custom Pricing	Custom Pricing	Custom Pricing	Custom Pricing	Custom Pricing	Custom Pricing	Custom Pricing	Custom Pricing
Trade Name Registration	AED 1k – 3k	AED 1k – 3k	AED 1k – 3k	AED 1k – 3k	AED 1k – 3k	AED 1k – 3k	AED 1k – 3k	AED 1k – 3k
Company Registration Fees	AED 5k – 10k	AED 5k – 10k	AED 5k – 10k	AED 5k – 10k	AED 5k – 10k	AED 5k – 10k	AED 5k – 10k	AED 5k – 10k
Visa Fees	AED 3k – 8k	AED 3k – 8k	AED 3k – 8k	AED 3k – 8k	AED 3k – 8k	AED 3k – 8k	AED 3k – 8k	AED 3k – 8k
Additional Costs	AED 2k – 10k	AED 2k – 10k	AED 2k – 10k	AED 2k – 10k	AED 2k – 10k	AED 2k – 10k	AED 2k – 10k	AED 2k – 10k

Note: Costs are approximate and can vary based on specific business needs and free zone policies. Always consult a business setup consultant in Dubai for precise estimates.

Cost-Saving Tips

While setting up a business in Abu Dhabi Free Zones involves various costs, there are ways to minimize expenses:

1. Choose the Right Free Zone: Select a free zone that aligns with your business activities to avoid unnecessary licensing fees.
2. Opt for Shared Office Spaces: If you’re a startup or a small business, consider serviced or shared office spaces to reduce rental costs.
3. Plan Your Visa Requirements: Only apply for the necessary visas to avoid excessive visa fees.
4. Leverage Business Setup Consultants: Experienced consultants can help you navigate the setup process efficiently, potentially reducing legal and administrative costs.
5. Negotiate with Free Zone Authorities: In some cases, you can negotiate better terms or discounts, especially if you’re committing to longer lease periods or multiple licenses.

Example Cost Breakdown

To provide a clearer picture, here’s an example cost breakdown for setting up a Free Zone Limited Liability Company (FZ LLC) in the Abu Dhabi Global Market Free Zone (ADGMFZ):

Cost Component	Amount (AED)
License Fees	AED 40,000
Serviced Office (1 Year)	AED 25,000
Trade Name Registration	AED 2,000
Company Registration Fees	AED 8,000
Employment Visa (3 visas)	AED 18,000 (AED 6k each)
Legal Fees	AED 5,000
Miscellaneous Fees	AED 3,000
Total Estimated Cost	AED 101,000

Note: This is a hypothetical example. Actual costs may vary based on specific requirements and free zone policies.

Understanding the costs involved in setting up a business in Abu Dhabi Free Zones is essential for effective financial planning and successful business establishment. While the initial setup costs can be significant, the numerous benefits, such as 100% foreign ownership, tax exemptions, and strategic location, make it a worthwhile investment for many businesses. By carefully selecting the right free zone and optimizing your setup process, you can minimize costs and maximize your business potential.

Partnering with a seasoned business setup consultant in Dubai can further streamline the process, ensuring compliance and efficiency. Our experts are equipped with the knowledge and experience to guide you through every step of the setup process, ensuring a seamless and successful business establishment.

Benefits of Abu Dhabi Free Zones

Abu Dhabi Free Zones offer numerous benefits that make them an attractive choice for business setup:

• 100% Foreign Ownership: Complete control over your business without the need for a local partner.
• Tax Exemptions: Enjoy exemptions from corporate and personal income taxes.
• Repatriation of Profits and Capital: Full freedom to repatriate profits and capital without restrictions.
• Zero Import and Export Duties: Save on costs with exemptions from import and export duties.
• Advanced Infrastructure: Access state-of-the-art facilities and robust logistics infrastructure.
• Business Cluster Environment: Benefit from a collaborative environment with companies in similar industries.
• Simplified Setup Process: Streamlined procedures through one-stop-shop services, reducing setup time.
• Legal Framework: Operate under a clear and reliable legal framework that supports business growth.
• Skilled Workforce: Access to a pool of skilled professionals and easy immigration processes.
• Government Support: Receive support from free zone authorities in terms of licensing, visas, and other regulatory requirements.

Dual Licensing in Abu Dhabi Free Zones

What is Dual Licensing?

Dual Licensing allows businesses registered in Abu Dhabi Free Zones to operate both within the free zone and on the mainland. This initiative enhances flexibility, enabling companies to expand their operations seamlessly across different regions.

Benefits of Dual Licensing

• Expanded Market Access: Conduct business in both the free zone and mainland without setting up a separate entity.
• Cost Efficiency: Save on costs by eliminating the need for multiple licenses.
• Operational Flexibility: Easily switch between free zone and mainland operations based on business needs.
• Enhanced Competitiveness: Improve your business’s competitiveness by accessing a broader market.

Eligibility and Process

Dual Licensing is available to companies in specific free zones, including ADGM, Twofour54, KIZAD, ADAFZ, and Masdar City Free Zone. The process involves:

1. Initial Free Zone Registration: Set up your business in the chosen free zone.
2. Application for Dual License: Submit an application to the Department of Economic Development (DED).
3. Approval and Issuance: Upon approval, receive dual licenses allowing operations in both areas.

Choosing the Right Business Setup Consultant in Dubai

Selecting a reliable business setup consultant is crucial for a smooth and efficient company formation process. Here’s why:

Expertise and Experience

Experienced consultants understand the local regulations, free zone requirements, and can navigate the complexities of company registration.

Tailored Solutions

Consultants offer customized solutions based on your business needs, ensuring the right legal structure and optimal setup process.

Time and Cost Efficiency

Professional consultants streamline the setup process, reducing time and minimizing costs by avoiding common pitfalls.

Comprehensive Support

From document preparation to visa processing, consultants provide end-to-end support, ensuring compliance with all regulatory requirements.

Trusted Partners

Reputable consultants have established relationships with free zone authorities, facilitating faster approvals and smoother operations.

Recommended: Business Setup Consultant in Dubai

FAQs

What is the cost of business setup in Abu Dhabi Free Zones?

The cost varies based on the free zone chosen, type of license, and office space requirements. License fees range from AED 5,000 to AED 50,000, while office space costs depend on the size and type of facility.

What are the types of legal entities allowed in the Abu Dhabi Free Zone?

Allowed entities include Free Zone Limited Liability Companies (FZ LLCs), branch offices of foreign or UAE companies, and freelance licenses.

Is a business plan required to incorporate a company in the free zone of Abu Dhabi?

Yes, in some free zones, a comprehensive business plan is required to secure pre-approvals and obtain the necessary licenses.

What is the Abu Dhabi free zone license cost?

The license cost depends on the specific free zone and the type of business activities. Costs typically range from AED 5,000 to AED 50,000.

How long does it take to set up a business in Abu Dhabi Free Zones?

The setup timeframe is generally 6-8 weeks, depending on the free zone and the completeness of the application.

Conclusion

Abu Dhabi Free Zones present an exceptional opportunity for foreign investors and entrepreneurs to establish and grow their businesses in a thriving and strategic environment. With benefits like 100% foreign ownership, tax exemptions, and advanced infrastructure, these free zones cater to a wide range of industries and business needs. Whether you’re a startup, SME, or multinational company, Abu Dhabi Free Zones offer the perfect platform for your business aspirations.

Partnering with a seasoned business setup consultant can further streamline the process, ensuring compliance and maximizing your business potential. Embrace the dynamic business landscape of Abu Dhabi and unlock unprecedented growth opportunities in 2025.

Ready to start your business in Abu Dhabi Free Zones? Contact our business setup consultants today and take the first step towards establishing your presence in one of the UAE’s most dynamic business environments.