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Sub-zone · KEZAD Group · Abu Dhabi

Industrial City of Abu Dhabi (ICAD I, II, III)

AED 9,450 – AED 28,400/ yr
high confidenceVerified 27 Jun 2026official ↗
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Best for

Businesses in manufacturing, heavy industry, logistics, and large-scale trading seeking a cost-effective industrial base.

Not ideal for

Small tech startups, freelancers, media agencies, or financial services firms due to industry focus and capital requirements.

01Capability profile
?
Banking10/15
?
Visa scale15/15
?
Cost (lower=better)17/20
?
Activity breadth16/25
?
Workspace options6/15
?
Location8/10
02Where ICAD sits
Year 1 cost← lower is better

ICAD: 66th percentile (AED 9,450) · Licence + registration, AED.

Setup time← lower is better

ICAD: 65th percentile (7 days) · Total estimated days from application to operational.

Visa caphigher is better →

ICAD: 94th percentile (500 visas) · Absolute maximum visa allocation. Values above 500 clipped to the right edge so the bulk of the distribution stays readable.

Banking ease← better
Easy
4
Moderate
73
Difficult
15
Very difficult
1

ICAD: Moderate · Corporate bank account opening difficulty. Each cell is one zone.

03Costs
9,450
– 28,400
Year 1 range · AED
AED 19,855 less than DMCC
mid tier
Show in
Base licence
AED 9,450
Registration
AED 0
Renewal (year 2+)
AED 9,450
3-year total
AED 28,350
2-year visa cost
AED 3,200
Year-on-year fee tracking begins 2026 — changes appear here as they accrue.
Indicative, from published ratesOfficial fee schedule ↗Verified 2026-06high confidence

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04Visas & workspace
Visa allocation
Maximum visas
500
Flexi-desk cap
2
Office cap
5
Family sponsorship
Available
Freelancer permit
Not available
Workspace options
Virtual office
No
Flexi-desk
No
Dedicated office
No
Warehouse
Yes
Industrial unit
Yes
05Banking & setup
Banking
Difficulty
Moderate
Time to account
~7 days
Minimum deposit
AED 15,000
Partner banks
First Abu Dhabi Bank (FAB)ADCBADIBEmirates NBD
Setup timeline
  1. Documents & application
    Passport, visa, business plan — ~3–5 days
  2. Licence issued
    ~3 business days after submission
  3. Bank account active
    Additional ~7 days · Moderate banking
  4. Operational
    Typically ~7 days
06Package pricing

All figures in AED, from official fee schedules. Visa and health-insurance costs are additional.

PackageVisasYear 1Renewal
Industrial Unit – Trading License – 2 VisasBest value2AED 18,000AED 15,000
Warehouse Unit 250sqm – 5 Visas5AED 38,000AED 32,000
Industrial Plot Lease – Manufacturing – 10 Visas10AED 55,000AED 48,000
Light Industrial Unit 500sqm – 8 Visas8AED 42,000AED 36,000
07Permitted activities
Heavy Industries, Automotive, Aerospace, Pharmaceuticals, Food and Beverage, Engineering, Construction Materials, Oil and Gas Services*
Categories
IndustrialManufacturingLogisticsTradingServices
Matched industry clusters
tradinghealthcareindustriallogistics
Restricted
None specified

Some activities require additional approval from the zone authority.

08Jurisdiction & ecosystem
Common lawNo
VAT designated zoneNo
QFZP eligible (0% tax)Yes
Inferred · 2026-06-27
Mainland permitYes
Inferred · 2026-06-27
Audit requiredNo
Inferred · 2026-06-27
Economic substancehigh
Inferred · 2026-06-27

This zone is Tier-1 with dedicated office and warehouse options under regulator supervision — substance is straightforward to demonstrate but the bar is high (regulator-grade evidence).

Focus: Manufacturing, Logistics, Industrial, Automotive, Food Processing, Pharmaceuticals, Metals, Polymers.

QFZP, audit, mainland-permit and substance values are sourced where the zone authority or FTA publishes them, and inferred from published zone characteristics otherwise. How we determine these values.

09Strengths & limitations
Strengths
  • Strong focus on heavy industry, manufacturing, and logistics.
  • Low-to-mid-range base license cost (AED 9450) with no registration fee.
  • Qualifying Free Zone status for corporate tax benefits.
  • Online registration and no physical presence required for setup.
  • Relatively straightforward banking process with recommended major banks.
Caveats
  • High minimum capital requirement of AED 150,000.
  • Limited visa allocation (2 for flexi-desk, 5 for office).
  • Not a VAT Designated Zone, potentially impacting certain operations.

Not ideal for: Small tech startups, freelancers, media agencies, or financial services firms due to industry focus and capital requirements.

10Recent developments
  1. 2025-Q1KEZAD Group, which administers ICAD, announced a AED 2 billion infrastructure expansion across its industrial cities including ICAD I, II and III, targeting increased capacity for pharmaceutical and food processing tenants.
  2. 2024-Q3ICAD introduced a fast-track industrial license pathway for manufacturers in the pharmaceuticals and medical devices sectors as part of Abu Dhabi's Make it in the Emirates initiative, reducing approval timelines by up to 40%.
11Tax considerations
Questions to raise with your tax advisor
  1. Does your planned revenue qualify under the QFZP qualifying-income rules?

    QFZP 0% only applies to qualifying income. Mainland trading or revenue from non-free-zone clients is generally non-qualifying and taxed at 9%.

  2. Will you need audited accounts even if this zone doesn't require them?

    FTA corporate-tax filing typically expects audited accounts for revenue above AED 50M, and banks often request them at much lower thresholds.

  3. How much of your revenue will come from mainland UAE customers, and how does that affect QFZP and 5% VAT obligations?

    Mainland revenue beyond ad-hoc levels can disqualify QFZP and triggers full 9% corporate tax plus standard VAT on supplies.

  4. Do any of your customers, suppliers, or shareholders meet the FTA's related-party definition?

    Related-party transactions need transfer-pricing documentation and may push otherwise-qualifying income into the 9% bracket.

These prompts are due-diligence questions, not tax advice. Confirm every answer with a UAE-licensed tax advisor before incorporating.

12Frequently asked
13Similar zones in Abu Dhabi
14About this data

ICAD data is sourced from official zone authority publications, government fee schedules, and where available, verified against direct communications with the zone. All figures in AED.

Last verified
2026-06-27
Confidence
high
Methodology
How we score →
Cited source
Fee data sourced from the official fee schedule, fetched 2026-06-27. View source ↗
Per-field citations
How we verify every zone →
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16Take the next step

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