By Adil Ahmad | Business Setup Consultant, Abu Dhabi and UAE Free Zones
Summary
Abu Dhabi’s three main free zones serve different businesses. ADGM suits financial services, holding companies and advisory firms under English common law. Masdar City Free Zone suits clean energy, technology and research companies, with packages from AED 7,000. KIZAD, part of KEZAD Group, suits manufacturing and logistics beside Khalifa Port, with published land tariffs. Media businesses should also consider twofour54.
Abu Dhabi is no longer just the UAE’s capital and oil centre. It is home to several distinct free zones, and choosing the wrong one can mean paying for a prestige address you do not need, or missing a regulator you do.
Here is the simple rule I give clients: financial services and holding go to ADGM, clean tech and research go to Masdar City, manufacturing and logistics go to KIZAD. The rest of this guide explains why, using official figures from each free zone.
Abu Dhabi’s Three Major Free Zones: At a Glance
| Factor | ADGM | Masdar City Free Zone | KIZAD (KEZAD Group) |
|---|---|---|---|
| Focus | Financial services, holding, advisory | Clean energy, tech, R&D, education | Manufacturing, logistics, industry |
| Location | Al Maryah Island and Al Reem Island | Near Zayed International Airport | Beside Khalifa Port, between Abu Dhabi and Dubai |
| Legal framework | Direct application of English common law | Free zone rules | Free zone rules |
| Regulator for finance | FSRA | Not a financial centre | Not a financial centre |
| Scale | 13,974 active licences (H1 2026) | 1,000+ companies (Masdar City figure) | 550 sq km; 1,750+ companies (KEZAD figure) |
| Entry price | Non-financial licence USD 5,500 | Packages from AED 7,000 | New licence AED 0; land from AED 32 per sq m per year |
| Best for | Funds, fintech, family offices, SPVs | CleanTech, ESG, AI, start-ups | Factories, warehouses, port-linked trade |
Also worth knowing: twofour54 is Abu Dhabi’s media, entertainment and gaming free zone, and is the better fit for film, TV and content businesses.
ADGM: Financial Services Under English Common Law
ADGM is Abu Dhabi’s international financial centre. It applies English common law directly under the Application of English Law Regulations 2015, with its own Court of First Instance and Court of Appeal (ADGM Courts).
Key facts from official sources:
- 13,974 active licences, 3,986 operational entities and a workforce of 49,027 in H1 2026, according to the Abu Dhabi Media Office
- 190 fund and asset managers running 276 funds
- Financial services licensed by the Financial Services Regulatory Authority (FSRA), with the FinTech RegLab sandbox for testing new products
- ADGM-registered companies can own property in Dubai under a 2018 agreement with the Dubai Land Department
Best for: asset managers, fintech firms, family offices, holding companies and SPVs, and legal or professional advisory firms. For setup steps, see our guides to ADGM free zone and how to set up a company in ADGM.
Masdar City: Clean Energy, ESG and Tech Businesses
Masdar City Free Zone is built around sustainability, research and innovation. According to Masdar City:
- More than 1,000 local and international companies, plus hundreds of start-ups
- Tenants include Siemens Energy, the International Renewable Energy Agency (IRENA), Mohamed Bin Zayed University of Artificial Intelligence and G42 Healthcare
- The Catalyst, a clean-tech venture investor run with BP
- Office, retail, land and build-to-suit space, including land for light industrial use
- About 5 minutes from Zayed International Airport and about 20 minutes from downtown Abu Dhabi
- One of the world’s largest clusters of LEED Platinum buildings
Packages (Masdar City Free Zone):
- Starter: from AED 7,000 (excl. VAT), 1 activity, eligibility for 1 visa, shared workspace, digital licence in about 1 day
- Growth: from AED 12,500, 2 activities, up to 4 visas, dedicated smart desk, bank account and PRO support
- Enterprise: custom pricing, unlimited activities and visas, private office or warehouse
Masdar lists over 600 licensed activities across about 20 industries.
Best for: renewable energy, CleanTech, climate and ESG consultancies, AI and deep-tech start-ups, and research-led companies that want an innovation community.
KIZAD (KEZAD): Industrial, Manufacturing and Port Access
Khalifa Industrial Zone Abu Dhabi (KIZAD) now operates under KEZAD Group, part of AD Ports Group. According to KEZAD, it is the UAE’s largest operator of integrated economic zones, covering 550 sq km, with more than 1,750 companies.
What KIZAD offers:
- A location next to Khalifa Port, which AD Ports Group lists with a container capacity of 7.8 million TEU and 18.5 metres depth
- Serviced industrial and logistics plots, pre-built warehouses, build-to-suit facilities and light industrial units
- Focus sectors including metals, polymers, speciality chemicals, food processing, automotive, life science and logistics
- Zones in Abu Dhabi, Musaffah, Al Ma’mourah and Al Ain
Best for: manufacturers, heavy and light industry, food processors, logistics and 3PL operators, and traders who need port access. For more, see our Khalifa Industrial Zone Abu Dhabi guide and our overview of the industrial zone in Abu Dhabi.
Cost Comparison: ADGM vs Masdar vs KIZAD
All three publish at least some official prices, which makes this comparison unusually clear.
| Cost item | ADGM | Masdar City | KIZAD (KEZAD) |
|---|---|---|---|
| Entry licence | Non-financial USD 5,500; retail USD 2,500; tech startup USD 1,500; financial USD 16,700 | Starter from AED 7,000; Growth from AED 12,500 | New industrial, trading or service licence AED 0 |
| Renewal | Non-financial USD 5,000 a year; tech startup USD 1,500 | Not listed | AED 5,000 for 2 years (AED 15,000 for general trading) |
| Extra fees | USD 300 data protection fee | Prices exclude VAT | Visa and permit fees, e.g. AED 1,500 employment residence |
| Space | Office lease, quoted separately | Shared desk or smart desk in packages | Land from AED 32 to 38 per sq m per year (industrial) |
Sources: ADGM fees, Masdar City packages, KEZAD tariffs.
What this means:
- ADGM is usually the most expensive for full financial services, because regulated firms pay higher fees and need proper offices. But its tech startup licence at USD 1,500 is cheaper than Masdar’s Starter package for eligible tech start-ups.
- Masdar City is mid-range and packaged, which makes budgeting simple for start-ups and SMEs.
- KIZAD has a very low licence cost, but your real budget is land, warehouses and construction.
Corporate tax: all three are free zones under UAE corporate tax. Qualifying income may be taxed at 0% only if your company meets the Qualifying Free Zone Person conditions in the Federal Tax Authority guide. Other taxable income is taxed at 9%.
Which Abu Dhabi Free Zone Is Right for Your Business?
| Your business | Best fit | Why |
|---|---|---|
| Fund manager, broker, fintech | ADGM | FSRA regulation and RegLab |
| Holding company, SPV or family office | ADGM | English common law and SPV regime |
| Legal or tax advisory | ADGM | Legal services framework and courts |
| Renewable energy or CleanTech company | Masdar City | Sector community and clean-tech investors |
| AI, research or deep-tech start-up | Masdar City | University and tech ecosystem |
| ESG or sustainability consultancy | Masdar City | Sustainability-focused address |
| Factory, food processing or chemicals | KIZAD | Industrial land and port access |
| Logistics, 3PL or import-export | KIZAD | Khalifa Port and logistics plots |
| Film, TV, gaming or content | twofour54 | Abu Dhabi’s media free zone |
My advice: start with your sector, then check cost. In Abu Dhabi, the regulator and the ecosystem usually matter more than a few thousand dirhams of licence fees. For the wider picture, see our guide to the business license in Abu Dhabi and how to start a business in Abu Dhabi. Our team can also compare Abu Dhabi and Dubai options as part of your free zone company setup or wider business setup in Dubai.
FAQs
Which is the best free zone in Abu Dhabi?
It depends on your sector. ADGM is best for financial services and holding companies, Masdar City for clean energy, tech and research, and KIZAD for manufacturing and logistics. Media businesses should look at twofour54.
Is ADGM more expensive than Masdar City?
For most businesses, yes. ADGM’s non-financial licence is USD 5,500 and financial licences cost USD 16,700, while Masdar City packages start from AED 7,000. However, ADGM’s tech startup licence costs USD 1,500.
How much does a Masdar City Free Zone licence cost?
Masdar City Free Zone lists a Starter package from AED 7,000 with 1 activity and 1 visa eligibility, and a Growth package from AED 12,500 with 2 activities and up to 4 visas, excluding VAT.
Is KIZAD the same as KEZAD?
KIZAD (Khalifa Industrial Zone Abu Dhabi) now operates under KEZAD Group, part of AD Ports Group, which covers 550 sq km of economic zones including the area beside Khalifa Port.
How much is a KEZAD licence?
KEZAD’s published tariff lists a new industrial, trading or service licence at AED 0, with a two-year renewal at AED 5,000. Land, warehouse and visa costs are charged separately.
Can an ADGM company own property in Dubai?
Yes. Under a 2018 agreement with the Dubai Land Department, ADGM-registered companies can own property in Dubai’s designated areas.
Which Abu Dhabi free zone is best for a tech start-up?
Masdar City suits clean-tech, AI and research start-ups, while ADGM’s tech startup licence suits fintech and other innovation firms. Both are strong choices depending on your sector.
