Masdar City Free Zone – UAE’s Most Sustainable Free Zone for Business Setup
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- February 11, 2026
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Start Your Business in Masdar City Free Zone Abu Dhabi
|
Feature |
Commercial |
Professional |
Industrial |
|---|---|---|---|
|
Function |
Buying, selling, importing, exporting, and distributing physical goods |
Providing non-physical, knowledge-based, or skill-based solutions |
Manufacturing, assembly, processing, or packaging of products |
|
Target group |
Wholesale traders, retailers (online or physical), distributors, import/export companies, general traders, companies seeking ADNOC vendor registration |
Consultants, professional service firms (legal, accounting), IT/software developers, marketing/HR, financial advisory |
Light manufacturers, assemblers of solar panels/electronics, clean-tech production firms, packaging operations |
|
Office requirement |
Mandatory if selling physical products |
Operates from a virtual desk, flexi-desk, or office space |
Requires dedicated space for production within approved zone facilities |
Flexible workspace options are available, including Flexi-Desks, serviced offices, and land for development, catering to a variety of business needs and sizes. Shopping outlets are also available within the sustainable community, making it suitable for retail businesses such as stores, restaurants, or cafes.
Masdar City Free Zone offers several business entity options, including Free Zone Limited Liability Company (FZ-LLC) and Branch of a Foreign/UAE Company, to suit the needs of entrepreneurs, start ups, and existing businesses.
Business packages available in the Free Zone include Start-Lite Packages starting around AED 7,000, and new business package options have been introduced to support business growth and development in Abu Dhabi.
Want More? Customize Your Package! Our flexible pay-as-you-go model allows you to add more features as your business grows, providing business benefits such as flexible licensing and tailored support for different business entities. The Free Zone provides a low-cost operational environment with full repatriation of capital and profits. Businesses also benefit from tax exemptions, including exemption from corporate and personal taxes.
Masdar City Free Zone is home to over 2,000 local and international organizations, including major organizations like Siemens and the International Renewable Energy Agency. The Free Zone has a streamlined business setup and registration process designed for efficiency and speed, and is recognized for its business-friendly regulations.

Masdar City Free Zone provides access to government-backed funding programs, investment incentives, and a unique network of education, R&D, and innovation. The Catalyst, a venture investor focused on technology and sustainability, is located in Masdar City Free Zone and provides access to capital, strategic partnerships, and industry networks for high-growth, sustainable startups. Notably, The Catalyst is a joint venture between Masdar City and BP, supporting clean-tech ventures.
The Free Zone offers a startup-friendly environment with 100% foreign ownership, zero import tariffs, and competitive licensing options, with no requirement for a local partner. The Free Zone Authority offers various types of business licenses tailored to different industries, and the new license packages offer unique flexibility to adapt to business requirements.
The Free Zone provides a collaborative ecosystem for high-growth businesses, where businesses and researchers work on challenges like climate change and energy efficiency. It attracts companies in AI, healthcare, and sustainable mobility, and serves as a global testbed for renewable energy and smart city technologies. Innovation partnerships include collaboration with the Mohamed bin Zayed University of Artificial Intelligence.
Masdar City features one of the largest clusters of LEED Platinum buildings in the world, with several net-zero energy buildings underway, and relies on solar energy and other renewable energy sources to power its infrastructure. Movement sensors have reduced electricity and water consumption by more than half. The project has gained support from global organizations such as World Wide Fund for Nature, BioRegional, and Greenpeace.
Businesses operating from Masdar City align with global Environmental, Social, and Governance (ESG) mandates, making them more attractive to investors and clients.
Introduction to the Most Sustainable Free Zone
Masdar City Free Zone stands out as the most sustainable free zone in the UAE, setting a global benchmark for environmentally conscious business environments. Strategically located in Abu Dhabi, Masdar City Free Zone is more than just a business hub—it’s a thriving ecosystem where innovation, sustainability, and business growth converge. As a magnet for industry leaders, international companies, and ambitious start-ups, the city free zone offers a unique platform for company formation, expansion, and long-term success.
At the heart of Masdar City’s appeal is its commitment to renewable energy and clean technology. Home to the International Renewable Energy Agency (IRENA), Siemens Energy, and the Mohamed Bin Zayed University of Artificial Intelligence, the free zone fosters a dynamic business community that is shaping the future of sustainable industries. With over 1,000 local and international organizations, Masdar City Free Zone is a vibrant network where entrepreneurs, researchers, and investors collaborate to drive innovation and sustainable growth.
Businesses in Masdar City Free Zone enjoy a host of business benefits, including 100% foreign ownership, no personal taxes, and cost-effective licensing options. The free zone’s one-stop shop approach streamlines company formation and licensing, allowing entrepreneurs to focus on what matters most—growing their business. Flexible office space solutions, from co-working areas to state-of-the-art headquarters, cater to the diverse needs of start-ups and established enterprises alike.
Masdar City Free Zone’s infrastructure is designed with sustainability at its core, featuring LEED Platinum certified buildings, net-zero energy facilities, and a range of community services that support a healthy, productive work environment. Strategic partnerships with organizations like Masdar Institute and the Abu Dhabi Investment Office (ADIO) provide businesses with access to funding, mentorship, and global networks, opening doors to investment opportunities and new markets across Asia, Europe, and beyond.
For venture investors focused on clean-tech and renewable energy, Masdar City Free Zone offers an ideal environment to develop, test, and commercialize innovative solutions. The city’s proximity to Abu Dhabi International Airport and downtown Abu Dhabi ensures seamless connectivity to the MENA region and international markets, making it a gateway for business expansion and cross-border collaboration.
Whether you are an entrepreneur launching a start-up, an established company seeking sustainable growth, or an investor looking to gain access to the world’s most promising markets, Masdar City Free Zone provides the foundation, support services, and community needed for success. With its forward-thinking approach, robust infrastructure, and unwavering commitment to sustainability, Masdar City Free Zone is the destination of choice for businesses ready to shape the future of technology, renewable energy, and sustainable development.
Before starting your company formation, check your business name availability instantly with our free trade name checker tool to ensure compliance with UAE regulations.
Location and Accessibility
Masdar City is strategically located in Abu Dhabi, positioning businesses at the heart of the MENA region with seamless access to both local and international markets. Just minutes from Abu Dhabi International Airport and approximately 17 kilometers from downtown Abu Dhabi, Masdar City offers unparalleled connectivity for companies looking to expand their reach. Masdar City Free Zone is strategically located five minutes from Abu Dhabi’s Zayed International Airport, 20 minutes from downtown Abu Dhabi, and 45 minutes from Dubai. Its proximity to major highways also means that Dubai is less than an hour away, making it easy for businesses to operate across the UAE and beyond.
As the most sustainable free zone in the UAE, Masdar City Free Zone provides an ideal environment for business growth, innovation, and collaboration with industry leaders. The city’s location not only facilitates efficient logistics and supply chain management but also enables companies to gain access to a thriving business community focused on renewable energy and sustainable development. With the International Renewable Energy Agency (IRENA) and other prominent organizations headquartered here, Masdar City is recognized as a global hub for renewable energy and advanced technology.
Businesses benefit from a streamlined company formation process, cost-effective licensing, and a comprehensive one-stop shop for all support services. Whether you are a startup or an established enterprise, Masdar City offers flexible office space options, zero personal taxes, and 100% foreign ownership, making it an attractive destination for international companies and investors. The city’s sustainable community, state-of-the-art infrastructure, and strategic partnerships create a unique ecosystem that supports sustainable growth and long-term success.

With its focus on innovation, research, and access to investment opportunities, Masdar City Free Zone is the perfect launchpad for companies aiming to lead in renewable energy, technology, and sustainable industries. Its strategic location, combined with a supportive business environment and world-class facilities, ensures that businesses can thrive and expand into new markets with confidence. Masdar City Free Zone also provides direct access to Asian markets, making it an ideal gateway for businesses targeting Asia for exports, services, and technological expansion.
Looking for business setup options across the UAE? Explore our comprehensive business setup services in Dubai and find the perfect jurisdiction for your company.





