Setting up a business in the UAE is an attractive move for global entrepreneurs. One of the most strategic hubs is the Industrial City of Abu Dhabi (ICAD), a dedicated industrial free zone offering world-class infrastructure, full foreign ownership, and sector-specific clusters.
What is the Industrial City of Abu Dhabi (ICAD)?
ICAD is a government-backed industrial zone managed by the Abu Dhabi Free Zones Authority. It supports heavy and light industries and is divided into ICAD I, II, and III, each catering to sectors like metals, chemicals, logistics, and construction.
What Are the Types of Licenses in ICAD Free Zone?
Industrial Licence
This allows businesses to manufacture, assemble, or process goods within ICAD. It’s ideal for large-scale industries due to access to energy and transport facilities.
Commercial Licence
Perfect for trading firms, this licence allows import, export, and distribution of goods locally and internationally.
Service Licence
Best suited for consultancies and logistics providers, this licence allows professional services tailored to industrial clients.
Which Types of Businesses and Industries Are Allowed in ICAD?
ICAD accommodates a range of sectors with streamlined approvals. Here’s a quick overview:
| Industry Type | Common Activities |
| Engineering | Fabrication, machining |
| Food Processing | Packaging, storage |
| Construction Materials | Cement, ready-mix, steel structures |
| Chemicals | Plastics, paints, industrial solvents |
| Logistics | Warehousing, distribution centres |
Step-by-Step Process to Set Up Your Business in ICAD
First, select your business activity and get initial approval from authorities. Then, reserve a trade name, submit documents, sign a lease agreement, and pay the fees. Once everything is verified, your ICAD trade licence will be issued.
What Documents Are Needed to Start a Business in ICAD?
You’ll need passport copies, business plan, initial approval, signed lease, Memorandum of Association, and Emirates ID (if applicable).
What Are the Costs of Setting Up in ICAD?
The starting cost is approximately AED 35,000, depending on your business activity and licence type. Additional charges apply for visas, leasing, and VAT registration under UAE VAT law.
How Long Does the ICAD Setup Process Take?
The entire process typically takes 2 to 3 weeks, depending on document accuracy and business type. Industrial activities may require more clearances, extending the timeline.
What Are the Post-Setup Requirements in ICAD?
Open a Corporate Bank Account
Enable business transactions and vendor payments.
Hire and Onboard Employees
Apply for work permits and residence visas via the UAE labour system.
VAT Registration
Register if your turnover exceeds the UAE VAT threshold.
Annual Licence Renewal
Keep your trade licence valid with timely renewals.
Financial Reporting
Maintain basic financial records and submit annual reports if applicable.
Contact Big4 for Assistance with Your ICAD Business Setup
Big4 Accountants and Consultants makes ICAD setup simple by providing:
- End-to-end support
- Fast document processing
- Expert business consultation
- Tailored industrial packages
- Compliance with UAE laws
FAQs
How to get visas for yourself and your employees in ICAD?
Apply through UAE labour portals after receiving your ICAD licence.
Are there any taxes or customs fees in the ICAD Free Zone?
No income tax. VAT applies. Customs exemptions vary by activity.
What authority oversees the ICAD Free Zone?
ICAD is managed by Abu Dhabi Free Zones Authority under IDB.
How many types of free zones are there?
Over 40 in the UAE, with six in Abu Dhabi.
Can foreign investors own 100% of a company in ICAD?
Yes, full foreign ownership is allowed in ICAD.