Free Zones in Abu Dhabi: Opportunities and Advantages

The capital of the United Arab Emirates is Abu Dhabi, not Dubai, which stands out in trade and economic growth. Abu Dhabi is one of the most prominent regional hubs attracting investors and entrepreneurs from around the world. Just as Dubai hosts numerous industrial and commercial free zones, Abu Dhabi also features a diverse range of free zones equipped with state-of-the-art infrastructure and services supporting various economic sectors. These zones play a pivotal role in strengthening the emirate's position as a global investment hub, offering incentives and facilitations that encourage both startups and major enterprises. If you're an ambitious entrepreneur seeking to launch your business in a dynamic and promising economic environment, this article will guide you through a comprehensive overview of the key free zones in Abu Dhabi and their unique advantages.

Advantages of Free Zones

Free zones play a central role in Abu Dhabi’s economic diversification strategy due to their vast potential and vibrant business environment. Each free zone is specifically designed to meet the needs of targeted industries, providing advanced infrastructure, integrated workspaces, and facilities that facilitate company establishment and ensure long-term sustainability and growth. These zones also benefit from strategic locations enabling seamless access to local, regional, and international markets, along with comprehensive and simplified setup and support services. Key benefits include:

• 100% foreign ownership rights
• Low operating costs
• Full freedom to transfer capital and profits
• Tax exemptions on imports, exports, corporate income, and personal income
• Double licensing options

Free Zones in Abu Dhabi

As the capital of the UAE, Abu Dhabi naturally offers numerous advantages for investors, as previously highlighted. There are currently six free zones strategically distributed across the capital city:

• Abu Dhabi Airports Free Zone
• Masdar City Free Zone
• Media Zone Authority
• Khalifa Industrial Zone Abu Dhabi (KIZAD)
• Abu Dhabi Industrial City (TAQAD)
• Abu Dhabi Global Market

Abu Dhabi Airports Free Zone

Located near Abu Dhabi International Airport, this free zone was developed by SkyCity, a subsidiary of Abu Dhabi Airports Company. The zone offers modern facilities and advanced infrastructure that attract significant investor interest, including luxury office spaces, logistics facilities, and prime land plots. As a free zone in Abu Dhabi, it provides tax exemptions and full foreign ownership rights.

• Location: Zayed International Airport
• Contact: 02 805 5000

Masdar City Free Zone

Masdar City has gained widespread recognition among UAE’s free zones for being one of the few sustainable developments in Abu Dhabi. Its innovative and distinctive buildings contribute to environmental sustainability and create a nurturing environment for investors. More precisely, Masdar City boasts abundant shaded green spaces that help reduce ambient temperatures and adapt to regional climate conditions. Its strategic location between Abu Dhabi and Dubai has significantly boosted its reputation, allowing companies to test, develop, and commercially launch clean technologies.

The free zone offers numerous advantages for those interested in clean energy projects, including the 'One-Stop Service Portal' that simplifies licensing and hiring procedures. Additionally, like other free zones, it grants foreigners full ownership rights, complete capital and profit repatriation freedom, and exemptions from import/export duties, personal income tax, and corporate tax.

• Location: Masdar City
• Working Hours: 08:00 AM – 04:00 PM (Monday to Friday)
• Contact: 02 815 6666

Twofour54

Twofour54 is a specialized free zone in Abu Dhabi focused on media, offering a fully integrated environment supporting creative industries such as advertising, animation, broadcasting, and game development.
It provides advanced infrastructure and comprehensive services to support global, regional, and local media companies, enhancing Abu Dhabi’s status as a leading force in the global media industry. Its dedicated facilities cater to content production, music, advertising, broadcasting, animation, and online game development. Twofour54 allows setting up limited liability companies and business offices, issues freelance licenses without a minimum capital requirement, provided there is at least one shareholder, a general manager, and a company secretary.

• Location: Yas Island, facing Yas Bay Marina, Abu Dhabi
• Working Hours: 09:00 AM – 05:00 PM (Monday to Friday)
• Contact: 02 401 2454

Khalifa Industrial Zone Abu Dhabi (KIZAD)

KIZAD, part of Abu Dhabi Ports, embodies Abu Dhabi’s 2030 economic vision. It offers an extensive import-export network, road, sea, and air transport links, thanks to its prime location adjacent to Khalifa Port—one of the world’s most advanced ports—alongside upcoming rail networks. This ensures easy access to both domestic and international markets. Notably, KIZAD launched a One-Stop Service Center to help businesses quickly obtain necessary licenses, approvals, and permits from government authorities and regulatory bodies.

• Location: Al Samih
• Contact: 02 800 102030

Abu Dhabi Industrial City (TAQAD)

Abu Dhabi Industrial City (TAQAD), one of the UAE’s most renowned free zones, lies on the border between Abu Dhabi and Dubai, spanning 40 square kilometers. It provides exceptional infrastructure and services for investors, including well-connected road networks linking to ports, airports, and local Abu Dhabi areas, as well as maritime and land freight connectivity. The land has been carefully planned and divided according to investor needs regarding price, size, and location. TAQAD is developed, built, and operated to international standards and current business requirements, ensuring flexibility to adapt to future demands and development plans.

• Working Hours: 07:00 AM – 04:00 PM (Sunday to Thursday)
• Contact: 02 800 ZONES (96637)

Abu Dhabi Global Market

Launched in 2015, the Abu Dhabi Global Market has become a cornerstone of Abu Dhabi’s economic vision, playing a vital role in establishing the emirate as a leading global center for finance and business. It maintains strong ties with global economies across the Middle East, South Asia, Africa, and beyond.

Thanks to its exceptional services for investors, the market has received multiple awards, including “Best International Financial Center in the Middle East and North Africa” for two consecutive years. The Abu Dhabi Global Market opens doors for investors to operate within a highly regulated and facilitative business environment.

• Location: Al Mariah Island
• Contact: 02 333 8888

Frequently Asked Questions

Explore the most common questions about Abu Dhabi’s free zones.

What are the free zones in Abu Dhabi?

Free zones in Abu Dhabi are special economic areas offering flexible business environments and investment incentives to attract both local and international companies, with tax exemptions and facilitations for operations in diverse sectors such as media, technology, industry, and logistics.

Can a company be established in a free zone without a local partner?

Yes, foreign investors in most Abu Dhabi free zones can fully own their companies without needing a local partner, granting greater management flexibility and decision-making autonomy.

What types of activities are permitted in free zones?

Activities vary by zone—some focus on media and creativity, others on industry and trade, while some specialize in technology and energy. There are also dedicated zones for financial and maritime services.

Can companies in free zones conduct business within Abu Dhabi?

Companies operating in free zones may engage clients outside the UAE or within other free zones. To conduct business within Abu Dhabi or the wider UAE market, collaboration with a local agent or establishing a branch in the local market is required.

What is the difference between free zones and non-free zones in Abu Dhabi?

Free zones offer full foreign ownership, tax exemptions, and special incentives, whereas non-free zones follow conventional federal and local regulations, typically requiring a local partner and subject to local taxes and fees.

Do free zones in Abu Dhabi provide ready-made office spaces?

Yes, most free zones offer a variety of options, including ready-to-use offices, shared workspaces, warehouses, and pre-developed industrial land.

Do free zones offer additional support services for companies?

Yes, services include legal consulting, administrative support, payment solutions, training, recruitment assistance, marketing support, and networking events to connect investors with potential partners.

Can a company move from a free zone to the local market in Abu Dhabi?

Yes, but it requires meeting local licensing criteria and registering with relevant authorities, which may involve appointing a local service agent or a local partner.

We recommend reviewing the difference between freehold and free zone ownership, as well as the free zones in Dubai.

With this, we conclude our article, covering all essential aspects of free zones in Abu Dhabi. We encourage you to follow MyBayt, the leading Arabic-language real estate blog in the UAE, where daily informative and valuable topics are published. Feel free to reach out anytime by leaving your inquiries in the comments section below, and don’t forget to subscribe to the MyBayt newsletter to receive weekly updates on topics that matter to you.