Best Freezones in Abu Dhabi

Best Freezones in Abu Dhabi

Abu Dhabi is the capital and second-most populous city of the United Arab Emirates (after Dubai). The city is home to the UAE's President, a member of the Al Nahyan family. The free zones in Abu Dhabi are part of the Emirate's economic diversification policy to boost the local economy and encourage foreign investment. The primary motivator for establishing a business in Abu Dhabi is there are many incentives and services available to shareholders by setting up a company in Abu Dhabi free zones. UAE has number of free zones across all the seven emirates which are having their own benefits through their category of seaport freezone, airport freezone , mainland freezone etc. Below are the benefits for setting up a business in Abu Dhabi based Freezone :

• 100% foreign ownership
• 100% tax exemptions on import and export
• 100% repatriation of capital and profits
• Exemptions of Corporate tax for up to 50 years
• No personal income taxes
• Pre-built sophisticated infrastructure
• Assistance with workforce recruitment and other support programs such as sponsorship and accommodation.

The majority of the UAE Emirates has created free zones to boost the region's economy, promote foreign investment, and stimulate growth. Below are few free zones in the Abu Dhabi:

Abu Dhabi Airport Free Zone (ADAFZ)

• ADAFZ is a free zone that encompasses most of Abu Dhabi's airports.
• It provides free zone facilities, business parks, a logistics park, and business centers
• They service the Abu Dhabi International Airport, the Al Ain International Airport, and the Al Bateen Executive Airport..
• ADAFZ permits the creation of limited liability corporations (‘LLCs') and Branches..

Twofour54

• Twofour54 is a media freezone that aims to build an Abu Dhabi artistic and media cluster.
• This is a media freezone overseen by Abu Dhabi's Media Zone Authority
• Many big Hollywood films have used twofour54's services for production work. In addition, their buildings house the first CNN Academy.
• Twofour54 allows freelancer licenses as well

Abu Dhabi Ports Company (ADPC) Free Zone

• Abu Dhabi Ports controls, maintains, and runs 11 ports and terminals in the United Arab Emirates and Guinea.
• Abu Dhabi Ports has been fully coordinated with the Abu Dhabi Government's 2030 Development Vision's economic plans and directives.
• A designated zone that blends the history of our onshore structure with the conventional advantages of an offshore free zone.
• The Abu Dhabi Port Free Zone is transforming the way businesses do business in the city.
• The port's safety and security does not jeopardize the risk-free nature of operations

Abu Dhabi Global Markets Free Zone (ADGMFZ)

• ADGM is a financial free zone that opened in late 2015.
• ADGM has a common law authority, with laws and regulations based on English and Whales common law.
• ADGM has its own legal structure and their own courts which will hear the commercial disputes against ADGM corporations and other firms who opt in.
• ADGM also approves the use of trust instruments as long as the trust complies with the terms of ADGM's trust statute.
• ADGM is the most recent free zone in Abu Dhabi and it is Abu Dhabi’s only financial free zone.

Masdar City Free Zone

• Masdar City Free Zone is a commercial center based in Masdar City (the local community) just outside Abu Dhabi's capital.
• Masdar City is home to the International Renewable Energy Agency's headquarters (IRENA).
• Masdar's Incubator Building provides retail and office space for start-ups, small and medium-sized businesses, and multinationals' regional offices..

Khalifa Industrial Zone Abu Dhabi (KIZAD)

• KIZAD has a broad variety of industry strategies for all forms of business operations such as engineering, logistics, trade, and delivery..
• KIZAD has excellent sea access through Khalifa Port, an ultra-modern deep water seaport that allows for fast bulk import and export.
• The Khalifa Port Free Trade Zone (Khalifa Port FTZ) is a cutting-edge trade, logistics, and manufacturing hub.

Flyingcolour has a trained team of experts who are well-versed in all of the laws and regulations governing business formation in Abu Dhabi free zones. It will conveniently assist you with Abu Dhabi's commercial sector development and guarantee significant tax savings.

Get assist of Flyingcolour business setup for Abu Dhabi Trade License

Support Services Available to Free Zone Businesses

Apart from licensing, most of Abu Dhabi free zones have a variety of support services to facilitate an efficient start-up process for entrepreneurs with few hassles. These support services generally include provision of flexi-desk and office space, visa processing, PRO services and access to industry networking events that go a long way in taking the pressure off the founder and focus on growth.

How to Choose the Right Free Zone for Your Business?

Due to the wide variety of both priced and free CRM solutions, you are sure to find one that is right for your business. It will depend on who you are, where you operate and where you want to go. Ask yourself these relevant questions:

• Which industry do I belong to? A financial services company will do well in ADGM. A manufacturing plant. Will extract much more value from KEZAD.
• Is there a requirement for physical infrastructure? If a requirement exists for warehousing or access to a port then KEZAD or Khalifa Port Free Zone will be more business relevant to media focused zones such as twofour54.
• How many visas will I require? Depending on the free zone you choose there are different rules on visa allocations related to office size and license type. This can impact on your long term costs.
• Is a common law legal system necessary? AFFIRM like ADGM is applying English common law which is a big benefit for those who expect cross border disputes or those who want something as familiar as contract enforcement.
• What is my budget? Costs vary widely between free zones, ranging from cheap flexi-desk packages right up to a high-end financial centre licensing, so it definitely is worth comparing the total set up and renewal costs over just the headline fee.

Final Thoughts

Abu Dhabi free zones are now some of the most established and financially robust business ecosystems in the Gulf. Regardless of whether you are a new business in the fintech sector, a large manufacturing and industrial venture, a media company or a regional trading platform, you will find Abu Dhabi free zone environment ideally tailored for your needs.

Selection of the appropriate free zone is of key importance to your gateway establishment in the UAE and making the correct decision from the outset will save considerable time, expense and bureaucracy in the future.

We at Flyingcolour® have the expertise and experience to lead every entrepreneur and investor through each stage of starting a company in Abu Dhabi's free zones whether it is selecting jurisdiction, license approval, visa management or bank account opening. Consult us now to select the free zone location that best complements your business aspirations.

Frequently Asked Questions

Which free zone in Abu Dhabi offers the most to financial services?

The most attractive financial market is Abu Dhabi Global Market (ADGM). The FSRA rules the market based on English common law, which appeals to the banks, fintechs, asset managers from around the world.

What is the duration of establishment of a company in the AD Free Zone?

The initial license is issued in most free zones within one to three weeks. The entire formation process including the processing of visas, stamping the visas and opening of bank accounts normally takes four to six weeks.

I would like to obtain 100% foreign ownership in an Abu Dhabi free zone-is this possible?

Yes, all Abu Dhabi free zones permit 100% foreign ownership. Investors are not required to have a local Emirati partner or sponsor, and they will have full control over their business's operations and profits.

Which free zone is best for manufacturing and logistics?

KEZAD (Khalifa Economic Zones Abu Dhabi) is the best suited zone for manufacturing, warehousing and logistics. KEZAD is located adjacent to Khalifa Port and comprises massive industrial land with sea freight and excellent infrastructure for expansion.

Do Abu Dhabi free zone companies pay corporate tax?

Tax treatment will be determined on the basis of the application of the applicable UAE corporate tax rules, the classification of the income as 'qualifying income' and the application of the substance rules. Many free zone companies will enjoy attractive rates but this will be activity and compliance specific.

Which free zone suits media and creative businesses?

Twofour54 - exclusive media free zone in Abu Dhabi. Backing TV productions, gaming, publishing, and digital agencies, provides studios, post production and an extensive network of creative industry professionals.

How many visas are included with an Abu Dhabi free zone license?

Visa: The number of visas will depend on the type of license, office size and free zone you choose. Generally the larger the office and flexi-desk packages the greater the number of visas. Different zones have different quota rules.

This blog is written by Sweta Bhatia, Chief Strategy Officer at Flyingcolour Business Setup, Dubai. We assist you in establishing your business setup in Dubai free zone by taking care of the required immigration, banking, insurance, registration, personal, and recruiting requirements.  For more information please contact us at +971 4 4542366 or email us at info[at]flyingcolour[dot]com.

*Please Note: This article was published on 25th May 2021. The information provided in the article is based on the policies and rules applicable at the time of writing it. Talk to one of our consultants for any recent update or change.