Overview
Masdar City Free Zone is a specialised business hub located within Masdar City, Abu Dhabi’s flagship sustainable urban development. Developed by Masdar, a subsidiary of Mubadala Investment Company, the free zone focuses on clean technology, renewable energy, and sustainability-driven businesses. The zone is integrated with the Masdar Institute (now part of Khalifa University) and serves as a living laboratory for sustainable building and urban design.
Key Sectors
Masdar City Free Zone targets renewable energy companies, energy storage and efficiency firms, clean transportation, water technology, waste management, sustainable construction, green building consultancies, environmental services, and climate tech startups. The zone also accommodates R&D operations in advanced materials and energy systems.
Setup Process
Company formation involves applying through the Masdar Free Zone Authority, selecting a licence type (commercial, consultancy, service, or industrial light), choosing office or lab space, and submitting standard incorporation documents. The zone offers a digital application process, and setup typically completes within one to two weeks. Companies benefit from co-location with Masdar’s own research and investment teams.
Costs and Licensing
Masdar Free Zone licence fees start at approximately AED 11,500 per year. Flexi-desk packages start at around AED 11,000 annually, providing a registered address and visa allocation. Dedicated offices within Masdar City’s LEED-certified buildings range from AED 850 to AED 1,500 per square metre per year. Lab and specialised R&D spaces are available at negotiated rates.
Benefits
Companies benefit from zero corporate and personal income tax for qualifying activities, 100 percent foreign ownership, full profit repatriation, access to Masdar’s clean energy investment network, and a location within one of the world’s most advanced sustainable city developments. The zone offers proximity to the International Renewable Energy Agency (IRENA) headquarters.
Ownership Rules
Foreign investors may own 100 percent of entities registered in Masdar City Free Zone. No local sponsor or partner requirement applies. Permitted entity structures include LLCs, branch offices, and freelancer permits.
Tax Regime
Qualifying companies enjoy zero percent corporate tax under the UAE free zone framework. No personal income tax applies. VAT at five percent is standard under federal law.
Infrastructure
Masdar City is designed as a low-carbon urban environment featuring solar-powered buildings, a personal rapid transit system, district cooling, and extensive pedestrian zones. The free zone facilities include Grade A offices, co-working spaces, labs, and conference centres. The development is located near Abu Dhabi International Airport and connects to the city via major highways.
Ideal Investor Profile
Masdar City Free Zone is best suited for clean tech companies, renewable energy firms, sustainability consultancies, environmental engineering companies, and R&D organisations seeking alignment with the UAE’s net-zero strategy and access to government-backed sustainability investment programmes.