Industrial City of Abu Dhabi (ICAD I, II, III)
Businesses in manufacturing, heavy industry, logistics, and large-scale trading seeking a cost-effective industrial base.
Small tech startups, freelancers, media agencies, or financial services firms due to industry focus and capital requirements.
01Capability profile
02Where ICAD sits
ICAD: 66th percentile (AED 9,450) · Licence + registration, AED.
ICAD: 65th percentile (7 days) · Total estimated days from application to operational.
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.
ICAD: Moderate · Corporate bank account opening difficulty. Each cell is one zone.
03Costs
- 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
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04Visas & workspace
- Maximum visas
- 500
- Flexi-desk cap
- 2
- Office cap
- 5
- Family sponsorship
- Available
- Freelancer permit
- Not available
- Virtual office
- No
- Flexi-desk
- No
- Dedicated office
- No
- Warehouse
- Yes
- Industrial unit
- Yes
05Banking & setup
- Difficulty
- Moderate
- Time to account
- ~7 days
- Minimum deposit
- AED 15,000
- Documents & applicationPassport, visa, business plan — ~3–5 days
- Licence issued~3 business days after submission
- Bank account activeAdditional ~7 days · Moderate banking
- OperationalTypically ~7 days
06Package pricing
All figures in AED, from official fee schedules. Visa and health-insurance costs are additional.
| Package | Visas | Year 1 | Renewal |
|---|---|---|---|
| Industrial Unit – Trading License – 2 VisasBest value | 2 | AED 18,000 | AED 15,000 |
| Warehouse Unit 250sqm – 5 Visas | 5 | AED 38,000 | AED 32,000 |
| Industrial Plot Lease – Manufacturing – 10 Visas | 10 | AED 55,000 | AED 48,000 |
| Light Industrial Unit 500sqm – 8 Visas | 8 | AED 42,000 | AED 36,000 |
07Permitted activities
Some activities require additional approval from the zone authority.
08Jurisdiction & ecosystem
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
- 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.
- 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
- 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.
- 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
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%.
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.
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.
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 →
- QFZP eligibility (0% corporate tax)Secondary · 2026-06-27Primary source ↗
- Audit requirementSecondary · 2026-06-27Primary source ↗
- Economic substanceSecondary · 2026-06-27Primary source ↗
- Mainland trading permitSecondary · 2026-06-27Primary source ↗
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