The Industrial City of Abu Dhabi (ICAD) is one of the UAE’s leading industrial hubs, located in Mussafah and covering over 40 square kilometers. With five specialized clusters, ICAD supports sectors from heavy manufacturing to advanced technology.

Managed by ADDED and ZonesCorp, ICAD provides direct access to ports, highways, and the upcoming Etihad Rail, making it a prime base for logistics and trade.

At Riz & Mona Consultancy, we simplify industrial company formation in ICAD, offering expert guidance, streamlined processes, and government-backed infrastructure. Just as we assist businesses in dubai healthcare city free zone and dubai internet city free zone​, our team ensures your setup in ICAD is efficient and future-focused.

ICAD Clusters in Abu Dhabi Industrial City (ICAD) Free Zone

ICAD has five clusters with 355+ companies and 30,000+ workers, fostering efficiency and collaboration.

ICAD I

Spanning 14 km², ICAD I hosts steel and metal foundries, cement plants, large-scale engineering, chemicals, and plastics, making it the hub for energy-intensive industries.

ICAD II

Covering 11 km², ICAD II supports light-to-medium industries such as engineering workshops, fabrication, wood processing, plastics, and oil & gas services.

ICAD III

With 12 km², ICAD III attracts high-tech and export-driven sectors like automotive, aerospace, electronics, renewable energy, food, textiles, and advanced materials.

ICAD IV

The largest cluster at 24 km², ICAD IV is dedicated to logistics, warehousing, and tech-based light manufacturing, with highway and Etihad Rail connectivity.

ICAD V

Spanning 11 km², ICAD V focuses on innovation-driven industries including advanced plastics, pharmaceuticals, electronics, and chemical processing.

Benefits of Business Setup in ICAD

Strategic Location

100% Foreign Ownership

Advanced Infrastructure

Skilled Workforce

R&D Incentives

Easy Licensing

Duty-Free Trade

Tax Exemptions

Legal Framework & Permitted Activities in ICAD

Ownership, Licensing, and Zoning

  • 100% Ownership: Foreign investors can fully own their companies with no local sponsor required. Common legal forms include FZ-LLC or foreign company branches.
  • License Types: Choose from Industrial (manufacturing), Commercial (trading), or Service (logistics/technical services) based on your business activity.
  • Annual Renewal: Licenses are valid for one year and require physical presence in the appropriate ICAD cluster.
  • Zoning Rules: Businesses must operate within the designated cluster for their industry (e.g., heavy industries in ICAD I, logistics in ICAD IV). Non-compliance may result in fines or closure.

Environmental, Labor, and Safety Oversight

  • Environmental Approvals: Heavy manufacturing and other impactful projects require an Environmental Impact Assessment (EIA) and approval from Environment Agency – Abu Dhabi (EAD).
  • Workplace Safety: ICAD enforces safety protocols through OSHAD, including safety training, PPE standards, and regular inspections.
  • Labor Laws: Compliance with UAE labor laws is mandatory, covering wages, contracts, and worker accommodation. ZonesCorp provides support for hiring and visa issuance.
  • Worker Housing: Labor-intensive industries benefit from nearby housing managed by ZonesCorp, with Emiratisation quotas applying when necessary.

Entry Requirements & Documentation for Business Setup in ICAD

Requirement Details
Business Activity Must align with ICAD’s industrial sectors and relevant cluster
Minimum Capital No official minimum (AED 150,000 often used as guideline for FZ-LLCs)
Facility Lease Mandatory lease agreement (land or built unit) before license issuance
Large Projects May require feasibility study, utility planning, or technical blueprints
Trade Name Reservation via Abu Dhabi DED/TAMM
Initial Approval From ZonesCorp/ADDED
Lease Agreement For ICAD premises
Shareholders & GM Passports and CVs required
Legal Documents Power of Attorney and Board Resolution (attested if foreign)
Business Plan Required for capital-intensive or strategic projects
Environmental Permits Civil Defense NOCs and other approvals (if applicable)
Branch Setup Legalized incorporation documents of parent company

Step-by-Step Guide to Business Setup in ICAD

Setting up a business in the Industrial City of Abu Dhabi (ICAD) is a well-supported process designed for both local and foreign investors. Below is a complete roadmap—from business planning to full operational readiness.
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Choose Your Activity and Legal Structure

Identify the exact business activity (e.g. manufacturing, logistics, or trading) and ensure it aligns with ICAD’s permitted list. Decide on the legal structure—typically a Free Zone LLC (FZ-LLC) or a branch of a foreign company—based on ownership and operational goals.

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Reserve Your Trade Name

Submit a unique company name for approval via the Abu Dhabi DED or TAMM portal. Names must follow UAE guidelines (e.g. no abbreviations or offensive terms) and include a legal suffix such as “FZ-LLC.”

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Apply for Initial Approval

Submit your application to ZonesCorp/ADDED, including proposed activity, shareholder details, business plan, and passport copies. Once your project is vetted and approved in principle, you’ll receive an Initial Approval Certificate.

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Lease a Facility and Secure Special Approvals

Choose from industrial plots, pre-built warehouses, or office units within ICAD. Sign the lease agreement and apply for necessary approvals such as an Environmental No Objection Certificate (NOC), EIA, or building permits depending on your activity type.

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Prepare and Sign Corporate Documents

Draft the Memorandum and Articles of Association (MOA/AOA) for an FZ-LLC, or submit attested corporate documents for a branch. Additional requirements include board resolutions, power of attorney, and any approvals not already submitted.

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Submit Final Documents and Get Your License

Present the signed documents, lease contract, and required approvals to the ICAD licensing center. After paying the applicable fees, your company will be registered, and your business license and facility lease certificate will be issued.

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Complete Post-License Setup

Apply for your Establishment Immigration Card, begin the visa process for staff and shareholders, and open a corporate bank account. If constructing a facility, begin buildout under approved plans. Finalize safety certifications and utility connections.

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Begin Operations

Secure operational permits such as a factory operating certificate or generator use license. Once utilities, equipment, and staffing are in place, your company is cleared to launch operations in ICAD.

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Cost of Setting up a Business in ICAD: SMEs vs. Large Enterprises

Cost Component SMEs (AED) Large Enterprises (AED)
Company Registration & License Fees 10,000 – 15,000 / year ~15,000 per license + consultancy
Facility / Land Lease 75,000 – 200,000 (500 m²) 3M – 4M / year (100,000 m² land)
Construction & Fit-Out 50,000+ (basic setup) 20M – 50M+ (20,000 m² facility)
Visa & Immigration 10,000 – 20,000 (2–5 staff) 300,000+ (100+ staff)
Utilities & Connections 10,000 – 30,000 (basic) 2M – 5M+ (high-capacity setup)
Worker Housing Optional / N/A Several million if built onsite
Professional / Legal Services 5,000 – 15,000 Additional consultancy/legal fees
Security Deposit 25,000 – 100,000 Not typical (land contracts differ)
Operating Capital Buffer 50,000 – 100,000+ Several million
Total First-Year Estimate 150,000 – 300,000+ 50M – 200M+

Comparison: ICAD vs. Other Major UAE Industrial Zones

Feature ICAD (Abu Dhabi) KIZAD (Abu Dhabi) JAFZA (Dubai)
Location Mussafah, near Abu Dhabi city Taweelah, midway between Abu Dhabi & Dubai Jebel Ali, adjacent to Jebel Ali Port
Free Zone Status Yes (100% ownership, tax-free) Yes (100% ownership, hybrid model) Yes (100% ownership, globally recognized)
Scale ~40 km², 355+ companies ~410 km² total, 100 km² free zone ~57 km², 10,000+ companies
Industry Focus Heavy/light manufacturing, logistics, tech Heavy industries, warehousing, logistics Trade, logistics, light manufacturing
Infrastructure Cluster-based, good road links, near port Modern, port-adjacent, wide roads, rail access High-end, integrated with port and metro
Cost Level Moderate (AED 150–200/m²/yr for warehouses) Low (land ~AED 30/m²/yr), cost-effective setup High (AED 400+/m²/yr for warehouses)
Strategic Benefits Gov’t incentives, cluster synergy, AD presence Port access, large-scale support, dual licensing Trade hub, global access, strong ecosystem

Challenges and Considerations of Doing Business in ICAD

While the Industrial City of Abu Dhabi (ICAD) offers strong infrastructure and government support, businesses should be aware of several practical and operational challenges that may impact setup and operations:

Limited Land Availability:

ICAD’s land plots are distributed across defined clusters, which may restrict flexibility for businesses needing large-scale or custom facilities.

High Initial Capital for Heavy Industries:

Projects involving manufacturing, chemicals, or complex installations often require significant investment in equipment, construction, and utilities.

Environmental and Regulatory Compliance:

Industries with potential environmental impact must undergo detailed EIA processes, which can delay timelines and add consulting costs.

Logistics Constraints Compared to Port-Based Zones:

Unlike KIZAD or JAFZA, ICAD does not sit directly on a major deep-water port, relying more on road transport and planned rail connectivity.

Multi-Agency Coordination:

Businesses must often engage with several government bodies (e.g., ADDED, ZonesCorp, Civil Defense, utilities), which can be time-consuming if not managed proactively.

Visa and Labor Housing Management:

Companies must arrange staff accommodation separately, as ICAD does not always provide integrated labor housing, especially for smaller enterprises.

Utility Infrastructure Upgrades:

High-energy users may need to invest in additional utility infrastructure (e.g. substations), especially for large facilities, which increases cost and setup time.

Dependence on Local Knowledge:

Navigating lease negotiations, approvals, and compliance is easier with experienced local advisors or setup consultants due to complex regulatory procedures.
Rizmona Consultancy 15 Years Experience

Business Setup in Industrial City of Abu Dhabi (ICAD) Consultants

How Riz & Mona Consultancy Can Help?

Riz & Mona Consultancy is renowned as one of the top business setup consultants in Dubai, with over 15 years of experience facilitating a wide range of businesses throughout the UAE. Our deep connections with government officials and key authorities, combined with our extensive expertise in consultancy, streamline the process of establishing your business in Dubai. Additionally, we offer comprehensive financial, legal, and corporate services to support our clients throughout their business endeavors.

We are here to provide comprehensive support for your Business Setup in Industrial City of Abu Dhabi (ICAD) , from preparing your documents to completing the process. Connect with us now to begin your journey with a FREE consultation!

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FAQs (Frequently Asked Questions)

Can I repatriate 100% of my profits from an ICAD company?

Yes. As an Abu Dhabi Free Zone, ICAD allows 100% repatriation of capital and profits without restrictions, which is a key benefit for foreign investors.
No. In ICAD’s free zone jurisdiction, foreign investors can own 100% of the business. There is no requirement for a local Emirati partner or sponsor.
Yes. All activities must align with ICAD’s list of permitted industrial operations approved by ADDED/ZonesCorp. Certain high-risk or environmentally sensitive activities may require additional scrutiny or might not be allowed.
Free zone companies in ICAD can trade within the UAE mainland only through a licensed local distributor or by obtaining dual licensing (subject to approval from ADDED). Direct retail or B2C trade is not allowed without a local agent.
While ICAD itself does not directly recruit staff, ZonesCorp may offer investor support services. Employers are responsible for sourcing labor, but visa quotas and approvals are managed through the free zone's one-stop shop.
The full setup can take 2–4 weeks for straightforward cases (e.g., using pre-built facilities with complete documents). More complex projects requiring construction and environmental approvals may take several months.
As of 2023, UAE free zones like ICAD are generally subject to 0% corporate tax on qualifying income. However, non-qualifying income or activities directed to the mainland may be taxed at 9%, so it's important to structure operations carefully and consult a tax advisor.