Calen Voss 
08.10.2025 Why Choose an Industrial City of Abu Dhabi Free Zone?
Industrial City of Abu Dhabi Free Zone (ICAD) is one of the region's largest industrial clusters, located just minutes away from Abu Dhabi International Airport and Mussafah Seaport. This location provides fast logistics and easy access to key trade routes in the Middle East, Africa and Asia.
The zone is in high demand among companies operating in the industrial, engineering, energy and construction materials sectors. Investors are attracted not only by the large-scale territories for the location of factories and warehouses, but also by the support from the government, which allows the development of projects on a long-term basis.
Registration with ICAD is as simple as possible: documents can be submitted remotely, and a licence is usually issued within a few working days. Flexible lease formats are available - from production sites and ready-made warehouses to office space. Corporate tax is 0% for Qualifying Free Zone Persons (QFZPs) on eligible income, otherwise 0% up to AED 375,000 and 9% above. Transparent pricing policy and scalability make the zone attractive for both large enterprises and medium-sized businesses focused on growth and entering new markets.
About the Industrial City of Abu Dhabi Free Zone
The Industrial City of Abu Dhabi Free Zone was established as part of the government's strategy to develop the non-resource sector and strengthen the industrial potential of the UAE capital. The project was implemented with the support of the government and is managed by ZonesCorp, which guarantees long-term stability and transparency for investors. Since its launch, ICAD has become one of the largest industrial clusters in the region, bringing together hundreds of companies in heavy, medium and light industries.
The main feature of ICAD is its clever division into several specialised zones (ICAD I, II, III and IV), each focusing on specific industries. ICAD I focuses on heavy industry: metallurgy, steel production, machine building. ICAD II is dedicated to light manufacturing, packaging and building materials. ICAD III is being developed as a centre for chemical, plastics, pharmaceuticals, food processing and textiles. ICAD IV attracts companies from the electronics, energy and high-tech sectors.
Located just 30 km from the centre of Abu Dhabi and close to key transport arteries - Mussafah Port and Abu Dhabi International Airport - ICAD has become not only an industrial zone, but also part of a major logistics hub. This gives companies access to markets in the Middle East, Africa and Asia, making the zone a strategically important platform for export-oriented industries.
Business Activities Allowed in the Industrial City of Abu Dhabi Free Zone
The Industrial City of Abu Dhabi Free Zone is primarily focused on industrial and manufacturing projects. Companies can be registered here in the fields of mechanical engineering, metallurgy, oil and gas services, plastic processing, chemical and pharmaceutical industries. Companies producing construction materials, packaging and metal structures are also in demand.
Opening a plant or production line requires approval from the relevant state authorities - in particular, for environmental protection, industrial safety and work with hazardous substances.
A unique feature of ICAD is the ability to locate large industrial projects in an area directly connected to Abu Dhabi's ports and transport infrastructure. This makes the zone particularly convenient for export-oriented industries that need proximity to logistics corridors and availability of modern warehousing and production facilities.
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Step-by-Step Industrial City of Abu Dhabi Free Zone Company Formation and Registration
Below is a practical roadmap for registration in the Industrial City of Abu Dhabi Free Zone. We will go through the stages from choosing a legal form and activities to obtaining a licence. We'll look at the list of documents, the nuances of remote filing, typical approvals and realistic deadlines.
Required Documents and Timeline
To register a company in the Industrial City of Abu Dhabi Free Zone, you need to prepare a standard set of papers. Document preparation will speed up the process of obtaining a licence and reduce possible delays:
Basic documents:
- Passport of all shareholders and directors (copy, valid for at least 6 months).
- Passport size photographs for each founder and director.
- Application for incorporation and legal structure selection form.
- Proof of residential address.
- CV's of the founders outlining experience and qualifications.
- Company incorporation documents.
- A business plan describing the type of business, proposed investment and number of employees.
Additional approvals may be required for special licences - for example, in the food industry, pharmaceuticals, chemical production or energy sector. In such cases, the business plan and technical documentation are sent to the relevant authorities for expertise.
With a complete set of documents, the process usually takes 2 to 4 weeks before the licence is issued and the business is ready to operate.
Remote Registration Option
It is possible to open a company in the Industrial City of Abu Dhabi Free Zone not only by personal visit, but also completely remotely. This format is convenient for entrepreneurs who want to save time and reduce travelling to the UAE.
The main tool is the free zone's online platform. Applications are submitted through it, scans of passports, business plans and other documents are uploaded. In most cases, the originals can be sent by courier or notarised and sent digitally. After verification, freezone specialists provide electronic versions of the founding documents.
Online verification is increasingly being used to confirm identity: the applicant is contacted via video link, passport data is checked and control questions are asked. It is also possible to appoint a local licensed registration agent.
On average, the procedure takes between two and four weeks. This approach allows you to start a business in Abu Dhabi while in another country, and you can come to the Emirates after receiving all the registration documents.
Types of Licenses and Costs in the Industrial City of Abu Dhabi Free Zone
When opening a company in the Industrial City of Abu Dhabi Free Zone, it is important to choose the right type of licence, as it determines the list of permitted activities, the cost of registration and business requirements. Both industrial licences for manufacturing and trade or service solutions for distribution and service-oriented companies are available in the free zone. Below, we consider the approximate costs of obtaining the license in ICAD.
Visa Packages and Pricing Breakdown
ICAD has flexible visa packages available that can be conveniently adapted to the size of your team. Prices are refined depending on the type of licence and office solution chosen, but the general order is as follows:
- 1 visa + Flexi-Desk - estimated from AED 9,000-10,000 per year; ideal for small business startups.
- 2 visas + Flexi-Desk - roughly AED 11,000-12,000; suitable for a small team.
- 3 visas + Flexi-Desk - around AED 13,000-14,000, suitable for a medium-sized business.
Additional costs:
- Each subsequent visa - about AED 3,000-4,000, including medical exam and Emirates ID.
- E-channel paid separately: about AED 2,000-2,500, with annual fees ranging from AED 1,000-1,200
Industrial City of Abu Dhabi Free Zone Company Formation: Who Should (and Shouldn’t) Choose This Free Zone?
The Industrial City of Abu Dhabi Free Zone is established as a strategic cluster for industrial and export development. The zone attracts investors due to its affordable space, world-class logistics and government support. However, it is not suitable for all types of businesses.
Who is suitable:
- Manufacturing companies in heavy, light and chemical industries.
- Manufacturers of building materials, metal structures, packaging and plastics.
- Logistics operators who need proximity to ports and airports.
- International corporations focused on exporting products.
- Engineering and service firms working in conjunction with production.
Who is not eligible:
- Freelancers and individual consultants looking for a low-cost office without manufacturing facilities.
- Companies from high-risk jurisdictions or industries requiring special authorisations.
- Businesses where VAT registration within the freezone is critical.
- IT or e-commerce startups without a manufacturing component.
Thus, ICAD is the choice for those who are planning industrial development rather than virtual services.
Conclusion
The Industrial City of Abu Dhabi Free Zone has consolidated its position as one of the largest industrial centres in the UAE. All key business advantages are concentrated here: access to vast land plots, modern infrastructure, favourable location close to Mussafah Port and Abu Dhabi Airport, as well as government support. This makes ICAD a particularly favourable location for export-oriented manufacturing companies and large enterprises that require scalability.
The zone is also attractive from a cost perspective: rent and licence fees are transparent, and the registration process can be completed remotely, without the need to be present in person in the Emirates. However, ICAD is not the best choice for freelancers or companies working exclusively in the service sector, as it specialises in industrial projects.
If you are planning a manufacturing start-up or business expansion in the Middle East, ICAD is a good entry point. The next step is to seek the advice of consultants who can help you choose the right licence, prepare documents and avoid unnecessary costs. This approach will speed up registration and ensure a good start.
Can I register a company in the Industrial City of Abu Dhabi Free Zone without visiting the UAE?
Company registration in ICAD is possible remotely. The application is submitted online, documents are sent in scans and identity verification is done via video link. If you wish, you can use the services of an accredited agent. A personal visit will be required at a later date to apply for resident visas or to open a bank account.
The ICAD administration allows instalments. Usually, licence fees and land rent are divided into several stages, which reduces the burden at the start. The conditions depend on the selected cluster and area, so it is worth checking the details with the official registration agent or management company before registration.
Can I use an Industrial City of Abu Dhabi Free Zone license for trading outside the UAE?
Yes, the licence allows exports and imports outside the country. Since ICAD is oriented towards industrial projects, many companies use it as a production base with subsequent shipment of products to other countries. The main thing is to comply with the customs rules and regulations of partner countries.
What activities require pre-approval in the Industrial City of Abu Dhabi Free Zone?
Pre-approval is required for chemical and pharmaceutical products, food production, work with hazardous substances, and energy projects. In such cases, technical documents and business plans are submitted to the relevant authorities. Without these approvals, the licensing process may be suspended or significantly delayed.
How does the Industrial City of Abu Dhabi Free Zone compare to other zones like DMCC or IFZA?
