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Business Setup in Masdar City — Abu Dhabi’s innovation free zone

Start a company in the Masdar City free zone, the prime location for renewable and sustainable businesses. Own your business completely and access mainland trade without the need for a separate office.

1,000+companies already in Masdar City
100%foreign ownership
0%corporate tax on qualifying income
AED 7,000packages start from

Establish Your Business 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 free zone also hosts the International Renewable Energy Agency (IRENA), the Mohamed bin Zayed University of Artificial Intelligence (MBZUAI), Siemens Energy, and the clean-tech accelerator “The Catalyst.”

Why Start a Business in Masdar City?

Location

Five minutes from Abu Dhabi International Airport, between Abu Dhabi and Dubai.

100% Foreign Ownership

Full ownership of your business, with eligible businesses paying 0% corporate tax.

Profit Repatriation

Fully repatriate your profits and capital as a foreign business owner.

Dual Licence

Operate in the free zone and on the mainland without needing an extra office.

R&D Access

Access advanced research and development partnerships inside the free zone.

Sustainability Hub

Energy-efficient buildings and partnerships with clean-tech companies.

Popular Business Activities in Masdar City Free Zone

Masdar City free zone is mainly known for activities related to energy, sustainability, AI, life sciences, and trading. These are some of the most popular business activities in the Abu Dhabi free zone:

Renewable Energy & Clean Tech

Engineering, installation, and maintenance of solar, wind, and energy efficiency solutions.

AI & Software Development

Design, programming, and commercial distribution of machine learning algorithms and software.

Autonomous Mobility

R&D, testing, and deployment support for autonomous vehicles, drones, and smart mobility.

Agritech & Food Security

Controlled-environment agriculture, vertical farming, and water conservation systems.

Space Technology

Satellite communications advisory, Earth observation data processing, and space research.

Life Sciences & Biotech

Pre-clinical research, genomic sequencing services, and digital health platforms.

Management & ESG Consultancy

Carbon management, energy auditing, ESG compliance, and business strategy advisory.

E-Commerce & Trading

Digital storefronts plus import, export, and wholesale distribution of tech and consumer goods.

Over 1,000+ Activity Options in Masdar City

Tell us what business you plan to start and we’ll help you choose the right trade licence.

What is the Cost of Business Setup in the Masdar Free Zone?

Starting a business in Masdar City free zone costs between AED 7,000 and AED 27,000, depending on the number of activities and visa requirements. Masdar City free zone also requires a minimum share capital deposit of AED 50,000 for LLC structures.

Standard packages include between 1 and 6 activities. You can add up to 15 activities per licence with a customised package, with the total licence fee capped at AED 30,000.

Startup Package

CostsAED 7,000
  • No visas included
  • Add up to 2 business activities

Innovation Package

CostsAED 12,500
  • 2 visas included
  • Add up to 3 business activities
  • Flexi-desk lease

Business One Package

★ Most Popular

CostsAED 17,500
  • 1 visa included
  • Add up to 3 business activities
  • Flexi-desk lease
  • Establishment card
  • E-channel fees
  • Visa medical exam
  • Emirates ID application

Enterprise Package

CostsAED 27,000
  • 3 visas included
  • Add up to 6 business activities
  • Flexi-desk lease

How Do You Start a Business in the Masdar Free Zone?

To start a business in Masdar City free zone, you pick a business activity and legal structure, reserve a trade name, get initial approval, apply for a trade licence, and then open a bank account.

  1. 1

    Choose a business activity & legal structure

    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.

  2. 2

    Reserve a trade name

    Your trade name options have to be given in both Arabic and English and follow the local guidelines. This is also part of your initial approval application.

  3. 3

    Apply for a trade licence

    Once you get initial approval from the free zone authority, you can apply for a trade licence. Your application can take up to 10 working days to be processed.

  4. 4

    Open a bank account

    Our consultants can help you open a local bank account for your business. We handle the entire application, including recommending a suitable bank.

Document List

A trade name reservation certificate, initial approval certificate, signed lease agreement, and proof of share capital deposit are required for every free zone trade licence application. Individual and corporate shareholders each have a separate set of requirements:

For Individual Shareholders

  • Passport copy (minimum 6 months validity)
  • Passport-size photo (white background)
  • Proof of residential address (utility bill or bank statement)
  • CV / resume of the owner(s)
  • Business plan (required for cluster activity approval)

For Corporate Shareholders

  • Certificate of Incorporation (or parent company trade licence)
  • Memorandum and Articles of Association
  • Board Resolution approving the setup and appointing the legal manager
  • Certificate of Incumbency (or Good Standing)
  • Passport copies of the appointed Director / Legal Manager

Choose Masdar City

Start your next business in Abu Dhabi’s innovation-focused free zone and access modern infrastructure, a global network of entrepreneurs, and government support for startups.

Start a Business in Masdar City With A&A Associate

A&A Associate is the largest corporate service provider 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.

A&A Associate credentials

FAQs

Is Masdar City a free zone?
Masdar City is an urban community in Abu Dhabi. It houses a free zone inside it, designed as a specialised economic zone and sustainable urban community that gives foreign business owners 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 Licence option, which permits the free zone company to legally trade on the mainland without needing a separate mainland office.
Can I get a dual licence in Masdar City free zone?
Yes — the Dual Licence option is a major benefit of Masdar City. It allows your free zone company to also get a mainland licence, 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 want to live near their business in an eco-friendly setting.