Overview
The Khalifa Industrial Zone Abu Dhabi (KIZAD) is one of the largest industrial zones in the Middle East, operated by Abu Dhabi Ports Group. Located midway between Abu Dhabi and Dubai along the E11 highway, KIZAD is integrated with Khalifa Port, the UAE’s deepwater semi-automated container port. The zone spans over 410 square kilometres and is designed to accommodate large-scale industrial, logistics, and manufacturing operations.
Key Sectors
KIZAD serves heavy and light manufacturing, petrochemicals, metals and steel fabrication, building materials, food processing, packaging, pharmaceuticals, polymers, automotive assembly, and logistics. The zone has attracted major industrial tenants across aluminium smelting, mixed-use manufacturing, and cold chain logistics.
Setup Process
Setting up in KIZAD involves selecting between free zone or non-free zone (mainland Abu Dhabi) designation, choosing a land plot or pre-built facility, applying for an industrial or commercial licence through Abu Dhabi Ports, and submitting operational and environmental compliance documentation. The dual-licensing model allows businesses to choose the structure that best fits their market access needs. Setup timelines vary from two weeks for commercial licences to several months for large-scale industrial plots requiring infrastructure development.
Costs and Licensing
KIZAD offers competitive industrial land lease rates starting at approximately AED 4 per square metre per year on long-term leases, making it one of the most cost-effective options for large-footprint operations. Commercial and trade licences start at approximately AED 10,000 per year. Pre-built warehouse units are available from around AED 180 per square metre annually. Infrastructure development costs depend on plot size and utility requirements.
Benefits
KIZAD provides zero corporate tax for free zone entities, 100 percent foreign ownership, duty-free import of raw materials and machinery, direct port connectivity via Khalifa Port, competitive land rates, and a one-stop-shop for licensing, permits, and visa processing. The zone offers both free zone and non-free zone options within the same development.
Ownership Rules
Free zone entities in KIZAD benefit from 100 percent foreign ownership. Non-free zone entities operating under Abu Dhabi mainland rules also permit full foreign ownership following the UAE’s updated commercial companies law. No local partner requirement applies in either model.
Tax Regime
KIZAD free zone companies benefit from zero percent corporate tax on qualifying income. Non-free zone entities are subject to the standard nine percent UAE corporate tax on profits exceeding AED 375,000. No personal income tax applies. Customs duties are waived for goods entering the free zone.
Infrastructure
KIZAD features industrial plots ranging from 5,000 to over one million square metres, pre-built warehouses, worker accommodation, an integrated logistics corridor connecting to Khalifa Port and Etihad Rail, utilities infrastructure, and dedicated truck access roads. The zone’s master plan includes future residential and commercial areas to support the industrial community.
Ideal Investor Profile
KIZAD is ideal for manufacturers, heavy industry operators, logistics and warehousing companies, petrochemical processors, food production facilities, and any business requiring large land plots, port access, and cost-effective industrial infrastructure in the Abu Dhabi-Dubai corridor.