Khalifa Industrial Zone Abu Dhabi (KIZAD) is an industrial park in Abu Dhabi, UAE. This industrial park is part of a project that aims to diversify the economy of the UAE by 2030. KIZAD was inaugurated in 2010 by Abu Dhabi Ports while it was officially launched in 2012.
An integral part of KIZAD is its free zone. The purpose of KIZAD FTZ is to transform this industrial zone into a leading place for businesses related to trade, manufacturing, and logistics.
Setting up a business in the Khalifa Industrial Zone Abu Dhabi (KIZAD) offers numerous advantages, making it one of the most attractive free zones for entrepreneurs. Here’s a detailed breakdown of its benefits:
1. Sophisticated Road Network
KIZAD’s advanced road infrastructure ensures the smooth movement of goods within the industrial zone and to the rest of the UAE. This efficient network supports streamlined logistics, enabling faster transportation and distribution across the region.
2. Strategic Proximity to Four International Airports
KIZAD is strategically located near four major international airports—Abu Dhabi, Dubai, and Al Ain—connecting your business to the UAE and the wider Middle East. This accessibility ensures seamless movement of goods by air and enhances global connectivity.
3. Khalifa Port – A Modern Deepwater Seaport
KIZAD is home to Khalifa Port, one of the most advanced deepwater seaports in the world. The port provides businesses with direct access to international shipping routes, enabling efficient import and export of goods to various global destinations.
4. Tax Exemptions
Businesses operating within KIZAD enjoy exemptions from income tax, sales tax, and capital gains tax. This tax-free environment ensures higher profitability and helps businesses focus on growth without the burden of taxation.
5. Custom Duty Exemptions
KIZAD offers custom duty exemptions on imported raw materials, machinery, and goods manufactured in the UAE. Joint venture companies also benefit from these exemptions, helping to reduce operational costs significantly.
6. Low Utility Costs
KIZAD boasts some of the lowest rates for water and electricity in the world. This cost-efficiency in utilities is a significant advantage for industrial businesses, reducing overall operating expenses.
7. Expert Advisory Services
Each business in KIZAD is assigned a dedicated relationship manager who provides expert advice and guidance. This personalized support ensures that businesses can navigate the complexities of setting up and running operations with ease.
8. Pre-Built Facilities
KIZAD offers pre-built free zone offices, warehouses, and light industrial units, saving businesses the hassle and time of constructing new facilities. These ready-to-use units are ideal for businesses looking to start operations immediately.
9. Accommodation for Workforce
KIZAD is working on a project to provide international-standard accommodation for operative staff, including laborers, skilled workers, and supervisors. This development will further enhance the living conditions for workers in proximity to KIZAD Area A.
Types of Licenses in KIZAD
To operate a business in KIZAD FTZ, you must obtain the appropriate license based on your business activities. Below are the three types of licenses available:
1. Trading License
A Trading License is required for businesses involved in import, export, warehousing, storage, and distribution of products. For businesses dealing with more than 17 products or multiple categories, a General Trading License is also available.
2. Service License
A Service License is suitable for businesses offering various services, including marketing, consulting, travel agencies, catering, restaurants, and management services. This license covers a wide range of non-commercial business activities.
3. Industrial License
An Industrial License is necessary for businesses engaged in the import of raw materials, manufacturing, assembling, packaging, and exporting finished products. This license supports all phases of the industrial production process.
Types of Companies in KIZAD
Two primary types of business entities can be established in KIZAD FTZ:
1. Limited Liability Company (LLC)
An LLC is the most common business entity in KIZAD. It can be formed with a minimum paid-up capital of AED 150,000 and can be owned by individual shareholders, corporate entities, or a combination of both. KIZAD Free Zone LLCs require between 1 to 5 shareholders.
2. Branch of a Company
Companies based outside KIZAD, either in the UAE or abroad, can register their branch within KIZAD FTZ. Establishing a branch does not require initial capital, making it an attractive option for expanding businesses.
Registration and Licensing Process in KIZAD
Starting a business in KIZAD involves a step-by-step registration and licensing process:
Choose a Business Activity
Select the business activity that aligns with your operations. The Department of Economic Development (DED) in Abu Dhabi uses the “International Standard Industrial Classification” issued by the UN, and your business must comply with this standard.Select the Legal Form
Choose the appropriate legal structure for your business, such as an LLC or branch, based on your business type and ownership structure.Register a Trade Name
Before applying for initial approval, you must register a unique trade name that reflects your business activity and complies with UAE regulations.Apply for Initial Approval
Once you have completed the previous steps, submit your application for initial approval from relevant authorities, depending on your business type and structure.Obtain Final Approvals
After receiving initial approval, acquire all necessary permits and approvals from authorities specific to your business sector. Each business type has unique requirements for final approval.Obtain a Business License
Finally, apply for the appropriate business license (Trading, Service, or Industrial) to legally operate within KIZAD FTZ.
Required Documents for KIZAD Company Formation
When registering your company in KIZAD, you will need to submit the following documents:
- Completed application form
- Copy of passport (colored)
- Passport-sized photograph
- Attested educational certificates (for consulting or investment-related activities)
- Latest visa (UAE Resident Visa or Visit Visa)
KIZAD Dual License
One of the most attractive features of KIZAD FTZ is the availability of a dual license. This allows companies operating in KIZAD to obtain an additional license from the DED Abu Dhabi for mainland business activities. The dual license eliminates the need for a local sponsor or local service agent (LSA), enabling businesses to operate freely in mainland Abu Dhabi without the requirement of a physical office in the mainland area.
Contact Us
For seamless, error-free company formation in KIZAD, reach out to Smart Business Creation Consultancy. We provide comprehensive support throughout the setup process. Contact us at for more details.
