Abu Dhabi free zone company setup

Which free zones are in Abu Dhabi?

The UAE government portal lists five Abu Dhabi free zones: Masdar City, Khalifa Economic Zones Abu Dhabi (KEZAD), Abu Dhabi Global Market (ADGM), Abu Dhabi Airports Free Zone and twofour54. This page covers ADGM, KEZAD, Masdar City and twofour54.

We compare zones for your activity and tell you the cost in writing before you commit.

What is ADGM, and who regulates it?

ADGM, Abu Dhabi Global Market, is a financial free zone in the Emirate of Abu Dhabi with its own civil and commercial laws. It was established as a financial free zone by federal legislation, and Abu Dhabi Law No. 4 of 2013 sets out its governance and regulatory framework.

ADGM has three authorities: the Registration Authority, the Financial Services Regulatory Authority (FSRA) and ADGM Courts. ADGM Courts state that ADGM is the first jurisdiction in the Middle East to directly apply English common law.

Financial services entities must meet the obligations the FSRA sets, and need in principle approval before registration. ADGM states that tech startup approval through Hub71 takes an average of 21 days.

• Physical presence is required, with offices on Al Maryah Island or Al Reem Island. Special purpose vehicles are the only exception.
• Entity types include private company limited by shares, restricted scope company, LLP, limited partnership, branch, foundation and SPV.
• Applications are made through ADGM's Online Registry Solution.

What does KEZAD offer, and can a KEZAD company sell on the mainland?

KEZAD offers industrial and logistics premises in both a free zone and a mainland zone, and states that its free zone companies can sell to the local market through distributors, agents or a dual license. The dual license is an additional Department of Economic Development license that needs no extra office space.

KEZAD Group is part of AD Ports Group and states that it covers 550 square kilometres. It names seven focus sectors: automotive, food processing, life science, logistics, metals, polymers and specialty chemicals.

Its facilities include serviced land plots, pre-built warehouses and light industrial units, build to suit facilities, and offices. KEZAD states that its free zone allows 100% foreign ownership and 100% repatriation of capital and profits.

Good to knowKEZAD did not publish prices, timelines or its legal entity types on the pages we checked in September 2026. We confirm them with the authority for your case.

How much does a Masdar City Free Zone license cost?

Masdar City Free Zone publishes four packages, starting at AED 7,000 for the Startup package, which has no visa and no office.

It also publishes office prices of AED 6,000 per year for a virtual desk and AED 10,000 per year for a flexi desk, and a fee of AED 3,050 for a two year employment visa.

Company structures are FZ-LLC, foreign branch and UAE branch. Masdar City Free Zone states that registration can typically be completed within a few working days, and it offers online self registration through its e-services portal. It states that it is home to more than 2,500 companies.

Good to knowThese are Masdar City Free Zone's published figures, checked in September 2026. They can change, so we confirm the current price with the authority before you commit.

What is twofour54, and can freelancers get a license there?

twofour54 is Abu Dhabi's media free zone, based at Yas Creative Hub on Yas Island. It serves media, gaming, entertainment and content production.

The zone is regulated by the Creative Media Authority, which also issues its sole proprietor license for freelancers. twofour54 states 100% ownership and no minimum capital requirement.

Good to knowtwofour54 did not publish prices or timelines on the pages we checked in September 2026. We confirm them with the authority for your case.

Do Abu Dhabi free zone companies pay corporate tax?

Yes, Abu Dhabi free zone companies are within the scope of UAE corporate tax under Federal Decree-Law No. 47 of 2022. The 0% rate applies only to a Qualifying Free Zone Person, and only on its Qualifying Income.

Ministerial Decision No. 229 of 2025 lists the Qualifying Activities. They include manufacturing, processing, logistics services, fund management, and wealth and investment management. Banking, insurance, finance and leasing are Excluded Activities, with exceptions.

Consultancy services are not on the list, and transactions with natural persons are an Excluded Activity, with limited exceptions. A Qualifying Free Zone Person pays 9% on taxable income that is not Qualifying Income.

• A Qualifying Free Zone Person pays 0% on Qualifying Income and 9% on taxable income that is not Qualifying Income (Article 3(2)).
• A Qualifying Free Zone Person does not get the 0% band on the first AED 375,000 of taxable income.
• Every Free Zone Person, qualifying or not, must register for corporate tax, file a return within 9 months of the end of the tax period and keep records for 7 years.
• To qualify, a company must, among other conditions, maintain adequate substance in the UAE, derive Qualifying Income, not elect into standard corporate tax, meet the arm's length and transfer pricing documentation rules, and prepare audited financial statements.
• A company that fails any condition loses the status from the start of that tax period and for the following four tax periods.

Good to knowThis page states what the official sources say. It is not tax advice.