By Tasawar Ulhaq, Founder, Incorporated. 12+ years of GCC market entry, on the ground in Dubai and Riyadh. · Last updated: June 2026
Overview of Abu Dhabi free zones
Abu Dhabi free zones cater to distinct sectors rather than offering a single general-purpose platform. ADGM leads for financial services and holding structures. KEZAD serves industrial, logistics, and trade. Masdar City focuses on clean technology and sustainability ventures.
All Abu Dhabi free zones allow 100% foreign ownership on permitted activities. Local UAE trading outside the zone typically requires a mainland branch, agent, or distributor depending on the zone rules.
ADGM free zone setup and other zones
ADGM
Abu Dhabi Global Market
An international financial centre operating under English common law. Ideal for holding companies (SPVs), family offices, fund managers, and fintech ventures.
- ✓ Common-law jurisdiction
- ✓ SPV, fund, and company structures
- ✓ FSRA-regulated financial activities
KEZAD
Khalifa Economic Zones
Integrated trade, logistics, and industrial hub. Offers dual licensing options combining free zone and mainland access for qualifying activities.
- ✓ Industrial and logistics focus
- ✓ Port and warehouse infrastructure
- ✓ Dual licence routes available
Masdar City
Sustainability Hub
Dedicated to renewable energy, clean technology, and sustainable innovation. Supports R&D, consultancy, and green tech ventures.
- ✓ Clean tech and renewables
- ✓ Innovation community
- ✓ Flexible office solutions
ADGM free zone setup process
ADGM free zone setup follows the Abu Dhabi Global Market Registration Authority process. Entity types include private companies, SPVs, branches, and regulated financial firms (subject to FSRA approval).
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1
Select entity type and activity
Choose company, SPV, branch, or regulated structure. Confirm activity fits ADGM permitted list or FSRA requirements.
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2
Prepare incorporation documents
Constitution, shareholder details, business plan, and KYC for all beneficial owners and directors.
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3
Secure registered office address
ADGM requires a registered address within the financial centre. Flexi-desk and serviced office options are available.
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4
Submit to ADGM Registration Authority
File incorporation application, pay registration fees, and collect commercial licence upon approval.
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5
Post-incorporation compliance
Register for corporate tax and VAT with the Federal Tax Authority, open bank account, and file annual ADGM returns.
Go deeper: ADGM Holding Structures · ADGM SPV Guide
Choosing the right Abu Dhabi free zone
| Zone | Best for | Legal system |
|---|---|---|
| ADGM | Funds, SPVs, family offices, fintech, holding companies | English common law |
| KEZAD | Manufacturing, logistics, warehousing, industrial trade | UAE federal and local law |
| Masdar City | Renewable energy, clean tech, sustainability consultancy | UAE federal and local law |
Tax, visas, and banking
Corporate tax
Qualifying free zone persons may benefit from 0% corporate tax on qualifying income. Non-qualifying income is taxed at 9%. Register with the Federal Tax Authority regardless.
Visas
Free zones sponsor employment and investor visas. Quota depends on office or flexi-desk package. ADGM entities follow ADGM immigration procedures.
Banking
ADGM entities often access international banks within the centre. KEZAD and Masdar companies open accounts with UAE retail and corporate banks. Allow several weeks for KYC.
Frequently asked questions
What are the main Abu Dhabi free zones?
The main Abu Dhabi free zones are ADGM (financial services and holding structures), KEZAD (industrial and logistics), and Masdar City (clean technology and sustainability).
What is ADGM free zone setup?
ADGM free zone setup means incorporating in the Abu Dhabi Global Market, an international financial centre under English common law. ADGM suits funds, SPVs, family offices, and fintech.
Can ADGM companies trade in the UAE mainland?
ADGM entities operate under free zone rules. Unrestricted trading across the UAE mainland typically requires a local agent, distributor, or a separate mainland branch or company.
How long does Abu Dhabi free zone setup take?
Standard ADGM incorporation often completes in two to four weeks. KEZAD and Masdar timelines are similar for straightforward activities. Regulated ADGM firms (FSRA) take longer.