By Adil Ahmad | Business Setup Consultant, UAE Industrial and Logistics Free Zones
Summary
JAFZA and KIZAD are the UAE’s two leading port-linked industrial free zones. JAFZA in Dubai sits beside Jebel Ali Port and hosts over 11,000 companies, making it ideal for trading, distribution and 3PL. KIZAD, part of KEZAD Group in Abu Dhabi, sits beside Khalifa Port and suits heavy industry, metals and chemicals with published land tariffs. Your supply chain decides.
When a manufacturer or logistics company asks me where to build in the UAE, the conversation quickly narrows to two port zones: Jebel Ali Free Zone (JAFZA) in Dubai and Khalifa Industrial Zone Abu Dhabi (KIZAD), now operated under the KEZAD Group brand.
Both give you 100% foreign ownership, land, warehouses and direct access to a deep-water port. But they serve different supply chains. This JAFZA vs KIZAD comparison looks at the ports, sector strengths, costs and location, using official figures from the zones and port operators, so you can match the free zone to your cargo, customers and growth plans.
JAFZA vs KIZAD: Port-Adjacent Free Zones Compared
Here is the side-by-side view most industrial clients ask for first.
| Factor | JAFZA | KIZAD (KEZAD Group) |
|---|---|---|
| Emirate | Dubai | Abu Dhabi |
| Operator | DP World | KEZAD Group, part of AD Ports Group |
| Established | 1985 | Khalifa Port opened 2012 |
| Size | 57 sq km | 550 sq km across KEZAD zones |
| Companies | 11,000+ from 150+ countries | 1,750+ companies (KEZAD figure) |
| Port | Jebel Ali Port | Khalifa Port |
| Licence types | Trading, Service, Industrial, Logistics | Industrial, Trading, Service, General Trading |
| Published fees | Via JAFZA cost calculator | Public tariff sheet with land rates |
| Best for | Trading, distribution, e-commerce, 3PL | Metals, chemicals, polymers, food processing, heavy industry |
Quick verdict: if your goods move through Dubai to the GCC and beyond, JAFZA is the natural hub. If you need large industrial land near Abu Dhabi’s industrial base, KIZAD is the stronger fit.
The Ports: Jebel Ali vs Khalifa Port
For port-based businesses, the port is the product. Here is what each one offers, according to its operator.
Jebel Ali Port (DP World)
- Described by DP World as the world’s largest man-made harbour and among the largest container ports worldwide
- 27 berths and 5,000 metres of quay
- Over 80 weekly shipping services linking to more than 150 ports
- Voted Best Seaport in the Middle East for 24 consecutive years
- JAFZA sits right beside it and is described as the largest customs-bonded zone in the Middle East
Khalifa Port (AD Ports Group)
- Opened in December 2012, according to AD Ports Group
- Container capacity of 7.8 million TEU and depth of 18.5 metres
- 36 berths with a semi-automated container terminal
- Terminals run with global partners including MSC, COSCO and CMA CGM
- Located between Abu Dhabi and Dubai, with road and rail connectivity and KEZAD right next door
What this means for you: Jebel Ali gives you the widest shipping network in the region today. Khalifa Port is newer, deep and expanding, with strong links to Abu Dhabi’s industrial clusters.
Sector Strengths: JAFZA for Logistics vs KIZAD for Industrial
JAFZA’s strengths. JAFZA lists logistics, FMCG, retail and e-commerce, automotive and spare parts, electronics, healthcare distribution, food, petrochemicals, machinery and manufacturing among its focus sectors. More than 100 Fortune 500 companies operate there. JAFZA also issues a dedicated logistics licence, which is why it remains the default choice for regional distribution centres and third-party logistics (3PL) providers.
KIZAD’s strengths. KEZAD Group focuses on metals, polymers, speciality chemicals, food processing, automotive, life science and logistics. It offers serviced industrial and logistics plots, build-to-suit facilities, pre-built warehouses and light industrial units. Emirates Global Aluminium’s Al Taweelah smelter is located within KIZAD, according to EGA, which shows the zone’s role in aluminium and downstream metals.
Consultant’s view:
- Import, re-export and regional distribution: JAFZA
- Heavy manufacturing needing large plots: KIZAD
- Downstream metals, polymers and chemicals: KIZAD
- E-commerce fulfilment for Dubai and GCC customers: JAFZA
- Supplying Abu Dhabi government-linked projects: KIZAD is closer to that ecosystem
Cost: JAFZA vs KIZAD License, Plot and Warehouse Fees
For industrial businesses, the licence is the smallest cost. Land, warehouse rent and fit-out drive the budget.
KIZAD (KEZAD Group) published tariffs. KEZAD publishes an official tariff sheet, which is rare among UAE free zones:
| KEZAD item | Official tariff |
|---|---|
| Serviced industrial plots, Abu Dhabi | AED 32 to 38 per sq m per year |
| Serviced logistics plots, Abu Dhabi | AED 36 to 45 per sq m per year |
| Industrial plots, Al Ain | AED 15 to 20 per sq m per year |
| Common area maintenance levy | AED 3 per sq m per year |
| New industrial, trading or service licence | AED 0 |
| Licence renewal (2 years), industrial, trading or service | AED 5,000 |
| Licence renewal (2 years), general trading | AED 15,000 |
| Employment residence permit | AED 1,500 |
Annual escalation and strategic land premiums can apply, so always confirm the final lease offer.
JAFZA pricing. JAFZA does not publish a fixed price list. Its official cost calculator estimates fees based on licence type (Trading, Logistics, Industrial or Service), number of activity groups and ownership structure. JAFZA requires an active lease for every company, with options from co-working desks and offices up to warehouses, land plots and custom developments. According to JAFZA, setup takes 3 to 14 business days after documents are submitted, and there is no minimum share capital.
Budget checklist for both zones:
- Land lease or warehouse rent, plus service charges
- Construction or fit-out for build-to-suit facilities
- Licence registration and renewal
- Visas, Emirates ID and medical tests for staff
- Customs, bonded storage and port handling charges
- Civil defence and environmental approvals for industrial activities
Corporate tax applies in both. Qualifying income may be taxed at 0% only if the company meets the Qualifying Free Zone Person conditions in the Federal Tax Authority guide. Other taxable income is taxed at 9%. Manufacturing and logistics activities can qualify, so plan your structure with a tax adviser.
Location: Dubai vs Abu Dhabi
JAFZA sits in southern Dubai beside Jebel Ali Port, with access to Al Maktoum International Airport and the Dubai road network. It is well placed for businesses selling into Dubai, the Northern Emirates and onward to the GCC, Africa and South Asia. If you also plan an air-cargo or aviation operation, compare the nearby zones in Dubai South before deciding.
KIZAD sits beside Khalifa Port, roughly between Abu Dhabi and Dubai, with highway and rail links. KEZAD also runs zones in Musaffah, Al Ma’mourah and Al Ain, which helps businesses that want a presence across Abu Dhabi emirate.
Practical point: think about where your workforce lives and where your customers are. A plant in KIZAD can still serve Dubai by road, and a JAFZA warehouse can serve Abu Dhabi. But daily trucking time and staff commuting add real cost over a long-term lease.
Which Is Right for Your Industrial Business?
Here is the decision framework I use with clients.
Choose JAFZA if you are:
- An importer, re-exporter or regional distributor
- A 3PL, freight forwarder or e-commerce fulfilment business
- A brand that needs fast access to Dubai’s market and Jebel Ali’s shipping network
- Looking for flexible space, from an office to a ready warehouse
Choose KIZAD if you are:
- A heavy or medium manufacturer needing a large serviced plot
- In metals, aluminium downstream, polymers, chemicals or food processing
- Supplying Abu Dhabi’s industrial and government-linked supply chains
- Price-sensitive on land and want transparent published tariffs
Still weighing up options? See our guides to getting a warehouse license in Dubai and the overall cost of a trade license in Dubai. If you are comparing other free zones too, our DMCC free zone guide is a useful starting point. Our team can also prepare a side-by-side plan for both zones as part of your business setup in Dubai.
FAQs
Which is better for manufacturing, JAFZA or KIZAD?
KIZAD is usually the stronger choice for heavy and medium manufacturing that needs large serviced plots, especially in metals, polymers and chemicals. JAFZA also issues industrial licences and suits lighter manufacturing tied to regional distribution.
Is KIZAD the same as KEZAD?
KIZAD (Khalifa Industrial Zone Abu Dhabi) now operates under KEZAD Group, which is part of AD Ports Group. KEZAD covers 550 sq km across several economic zones, including the area beside Khalifa Port.
Which port is bigger, Jebel Ali or Khalifa Port?
Jebel Ali is the more established hub, described by DP World as among the largest container ports worldwide, with over 80 weekly services to more than 150 ports. Khalifa Port opened in 2012 and has a container capacity of 7.8 million TEU, with continued expansion by global terminal operators.
How much does land cost in KIZAD?
KEZAD’s published tariff lists serviced industrial plots in Abu Dhabi at AED 32 to 38 per sq m per year and logistics plots at AED 36 to 45, plus a maintenance levy of AED 3 per sq m. Check the official tariff page before signing.
How long does company setup take in JAFZA?
JAFZA states that setup takes 3 to 14 business days after you submit documents, through a fully digital process. Industrial activities may need extra approvals.
Can a JAFZA or KIZAD company sell in the UAE mainland?
Free zone companies generally need a mainland distributor, agent or additional licence to sell directly in the UAE mainland. Check the current rules with your free zone and the relevant economic department.
Do JAFZA and KIZAD companies pay corporate tax?
Yes, both fall under UAE corporate tax. The 0% rate applies only to qualifying income for companies meeting the Qualifying Free Zone Person conditions. Other taxable income is taxed at 9%.
