Business Setup in
Masdar City Free Zone
Prices starting fromAED 7,000
Masdar City free zone the flagship project of Abu Dhabi Future Energy Company (Masdar), operates as a special economic zone with a focus on clean technology and renewable energy. It was developed with the vision of transforming Abu Dhabi into “the pre-eminent source of renewable energy, knowledge, development, implementation and the world’s benchmark for sustainable development.”
The Masdar City Free Zone and Science & Technology Park is an emerging global clean-technology cluster that places its resident companies at the heart of the global renewable energy and clean-tech industry. It covers an area of approximately 6 km and is located near Abu Dhabi International Airport and only 17 km from Masdar City Abu Dhabi.
As a testbed for renewable energy, companies established in Masdar City can pilot, demonstrate, refine, develop and commercialise their technologies. It provides a multitude of incentives, such as 100% foreign ownership of companies eliminating the need for a local partner, a low-cost operational environment, full repatriation of capital and profits and exemption from import, export, corporate and personal taxes.
Why Masdar City Free Zone is Ideal for Business Growth
These business-friendly features are complemented by Masdar City’s state-of-the-art technology infrastructure, world-class facilities and liberal investment regulations creating a favourable environment for companies to freely conduct business. The Masdar City Free Zone is home to over 400 companies, including the International Renewable Energy Agency (IRENA) and the regional headquarters of Siemens.
Masdar City relies on solar energy and other renewable energy sources but its unique construction allows for the temperature in the streets to be between 15 and 20°C, much cooler than the desert climate. It is powered by a 54-acre field with 87,777 solar panels, and movement sensors have reduced electricity and water consumption by more than half. The project has gained the support of global organisations such as the World Wide Fund for Nature, BioRegional and Greenpeace.
Freezone Locations
Key features of the Masdar City Free Zone
- Research and Development hub with potential to partner with the Masdar Institute of Science & Technology
- Critical mass of sector knowledge and talent
- 100% foreign ownership, no local partner required
- 100% exemption from corporate and personal income taxes
- Unrestricted repatriation of both capital and profits
- Get 100% repatriation of profits and capital
- 0% import tariffs
- No minimum capital requirement if setting up a branch
- Enhanced framework of intellectual property protection
- Simple set-up with a ‘one-stop-shop’ for registration, government relations and visa processing
- Cost-effective licensing and office space
Types of business entity available for set-up
Companies operating in the Masdar City free zone do so in accordance with the Masdar City Companies Registration Regulations. Masdar City facilitates quick and straightforward incorporation services to businesses, allowing them one of the following three types of legal structure:
- Free Zone Limited Liability Company (FZ-LLC) with corporate and/or individual shareholders
- Branch of a foreign/offshore company
- Branch of a UAE-based company (including companies incorporated in other UAE Free Zones)
There is no minimum capital requirement for setting up a branch of your company. For establishing an FZ-LLC, the minimum capital requirement is AED 50,000 (US$13,624).
Masdar City Abu Dhabi Business Activities and Licensing Guidelines
Companies incorporated and registered in Masdar City Free Zone have a legal identity and are permitted to open branches outside the Free Zone, subject to the approval of the authorities concerned. The Masdar City Free Zone licence is valid for operating a business only inside the free zone. Goods may only be sold in the local market or in other Emirates through distributors or agents.
- Renewable Energy
- Clean Tech & ICT
- Marketing and Events
- Human Resources Development
- Energy Industry
- Healthcare Services
- Service Providers
- Property Development Services
- Regional Head Quarters, Trading and Holding Companies
- Business Centre and Data Centres
- Community Services (Retail, Food and Beverage outlets)
- Oil and Gas Services
Business Setup in Masdar City Free Zone
Masdar City is a free zone located in Abu Dhabi. It houses over 1,000 local and international companies, SMEs, and a diverse, multinational entrepreneurial community. The free zone mainly supports businesses in renewable energy, clean technology, R&D, sustainability, and ICT industry sectors.
It has dedicated clusters for high-impact sectors like SAVI (Smart & Autonomous Vehicle Industries) and AGWA (AgriFood Growth & Water Abundance). The Masdar free zone also hosts the International Renewable Energy Agency (IRENA) and the Mohamed bin Zayed University of Artificial Intelligence (MBZUAI).
Freezone Locations
Why Start a Business in Masdar City Free Zone?
Strong location
100% foreign ownership
Profit repatriation
Dual license
R&D access
Sustainability industry hub
Strong location
100% foreign ownership
Profit repatriation
Dual license
R&D access
Sustainability industry hub
Industry Sectors in the Masdar City
Businesses in Masdar City generally lie in the sustainability or green technology sectors. The Abu Dhabi free zone is divided into six “industry clusters”:
Artificial Intelligence
- The cluster advances research and development of intelligent systems that solve complex global challenges.
- It includes the Mohamed bin Zayed University of Artificial Intelligence and the Advanced Technology Research Council.
Life Sciences
- The cluster supports research in rare diseases, genomics, and cell and gene therapy, along with preclinical and clinical trials. Masdar free zone also provides custom-built facilities for biotech companies.
- It is supported by partnerships with the Abu Dhabi Department of Health (DOH) and the Abu Dhabi Investment Office (ADIO).
Space Technology
- The cluster advances satellite technology and related research, focusing on addressing challenges like climate monitoring, resource management, and global communications.
- The UAE Space Agency collaborates with Masdar City to support innovative space initiatives.
Energy
- This cluster focuses on renewable energy, clean technologies, and energy efficiency.
- Organizations within it lead the global transition to sustainable energy and work to reduce carbon emissions.
Agri-Technology
- The cluster supports the UAE’s national food security goals by developing sustainable food production systems that use fewer resources and deliver higher yields.
- It is led by the Abu Dhabi Investment Office (ADIO) and focuses on innovations in vertical farming.
Smart Mobility/SAVI
- Masdar City works closely with the Abu Dhabi Investment Office (ADIO) to support the growth of the mobility sector.
- The cluster focuses on transforming urban mobility through innovative and sustainable transportation solutions.
Types of Licenses in Masdar City Free Zone
These are the costs for getting an Masdar City Abu Dhabi license
| Feature | Commercial | Professional | Industrial |
| Function | Buying, selling, importing, exporting, and distributing physical goods | Providing non-physical, knowledge-based, or skill-based solutions | Manufacturing, assembly, processing, or packaging of products |
| Target group | Wholesale traders, retailers (online or physical), distributors, import/export companies, general traders, companies seeking ADNOC vendor registration | Consultants, professional service firms (legal, accounting), IT/software developers, marketing/HR, financial advisory | Light manufacturers, assemblers of solar panels/electronics, clean-tech production firms, packaging operations |
| Office requirement | Mandatory if selling physical products | Operates from a virtual desk, flexi-desk, or office space | Requires dedicated space for production within approved zone facilities |
How Do You Start a Business in the Masdar Free Zone?
Want More? Customize Your Package! Our flexible pay-as-you-go model allows you to add more features as your business grows.
Startup Package
Starting From
AED 7,000
This package includes
- Registration and License
- Activities Business 2
- Agreement Lease
- Shareholders 3
Add-On Options:
- Extra Business Activities - Expand your scope for an additional fee
- Additional Shareholders-Add partners to your business
- Lease Upgrade- Upgrade your virtual lease agreement as needed
How Do You Start a Business in the Masdar Free Zone?
For company formation in Abu Dhabi free zones, the process generally works like this:
A business setup consultant can give you a list of activities in Masdar City. Legal structure options include an FZ LLC (Free Zone LLC) and branch companies.
Your trade name options have to be given in both Arabic and English and follow the local guidelines. This will also be part of your initial approval application.
Your license application can take up to 10 working days to be processed. You will need to submit your initial approval document as part of your application.
Our consultants can help you open a local bank account for your business. We can handle the entire application process, including recommending a suitable bank.
Document List for Business Setup in the Masdar City Free Zone
- Business plan
- Personal identification documents of owners
- Trade name reservation
- Initial approval certificate
- Memorandum of Association
- Certificate of Incorporation
- Bank reference letter
- Tenancy contract
Start a Business in Masdar City With A&A Associate
A&A Associate is the largest business setup advisory in the UAE. Our expert consultants have helped thousands of entrepreneurs start businesses all over the country. We can handle the entire business setup process, including recommending office space, getting approvals, and helping you open a bank account.
If you’re interested in starting a company in Masdar City, get in touch for a free consultation!
FAQ
Is Masdar City a free zone?
Masdar City is a free zone located in Abu Dhabi. It is designed as a specialized economic zone and sustainable urban community that provides foreign business owners with 100% company ownership.
What are the incentives for Masdar City?
Masdar City offers 100% foreign ownership and 0% corporate or income tax on qualifying income. A key advantage is the Dual License option, which permits the free zone company to legally trade on the mainland without needing a separate mainland office.
What are the license packages offered in the Masdar free zone?
Masdar City offers the Start-Lite Package for solo founders, which offers up to two activities, and the Business Package which allows up to six activities for growing SMEs. They also provide specialized options like the Women Entrepreneurship Program, with annual fees starting at AED 6,000.
Can I get a dual license in Masdar city free zone?
The Dual License option is available and is a major benefit of Masdar City. This feature allows your free zone company to also get a mainland license, enabling you to trade and operate directly on the Abu Dhabi Mainland from your Masdar office.
Can you live in Masdar City?
Masdar City is an integrated community, often referred to as a “Work Live Play Learn” environment. It offers residential clusters, including apartments, making it a viable option for investors and employees who seek to live near their business in an eco-friendly setting.
Are free zones tax-free in the UAE?
UAE free zones, including Masdar City, are usually tax-free environments. Businesses benefit from a 0% personal income tax rate and pay no corporate tax on qualifying income, as long as they meet the necessary compliance criteria.