Setting up a business in the United Arab Emirates (UAE) is an attractive opportunity for foreign investors, especially in the industrial sector. Among the many free zones in Abu Dhabi, the Industrial City of Abu Dhabi (ICAD) stands out as a purpose-built hub for manufacturing, logistics, and high-tech industries. ICAD provides world-class infrastructure, strategic connectivity, and an investor-friendly environment, making it an ideal choice for businesses looking to establish a presence in the UAE.

At Business and Beyond Consulting LLC FZ, we specialize in helping entrepreneurs navigate the complex setup process in ICAD, ensuring compliance and maximizing efficiency. This guide provides a detailed roadmap for investors considering ICAD, covering clusters, infrastructure, business setup procedures, costs, incentives, and more.

Location & Strategic Importance of ICAD

The Industrial City of Abu Dhabi spans 40 square kilometers and is strategically positioned to offer seamless connectivity to Abu Dhabi city, Dubai, major highways, airports, and seaports. Its location allows businesses to access over 200 air routes, port networks, and road systems, facilitating the efficient movement of goods and materials.

For investors, this connectivity translates into reduced logistics costs, faster time-to-market, and ease of supply chain operations. ICAD’s master planning ensures that each industrial cluster is designed to maximize operational efficiency while minimizing environmental impact.

Industries and Sectors Supported in ICAD

ICAD supports a diverse range of industrial sectors, making it suitable for both heavy and light manufacturing businesses. Some of the prominent sectors include:

• Engineering & Metals – Fabrication, machinery, and metal processing.
• Chemicals & Plastics – Production and processing facilities.
• Construction Materials – Cement, aggregates, and building supplies.
• Oil & Gas Services – Equipment manufacturing, spare parts, and logistics.
• High-Tech Industries – Electronics, automation, and innovation-based ventures.
• Food Processing & Logistics – Storage, packaging, and distribution.

By accommodating such a wide array of sectors, ICAD enables investors to tap into Abu Dhabi’s industrial growth while benefiting from tailored infrastructure.

ICAD Industrial Clusters

ICAD consists of five major industrial clusters, each catering to different business activities. Choosing the right cluster is critical for operational efficiency and compliance.

ICAD I

Ideal for heavy and medium manufacturing, engineering, and processing industries, ICAD I offers large land plots with robust utility connections.

ICAD II

Suited for light to medium manufacturing and engineering, ICAD II combines cost-effective land options with strong logistical support.

ICAD III

This cluster focuses on international businesses in chemicals, plastics, construction materials, high-tech industries, food, textiles, and light engineering.

ICAD IV

Designed for technology and light manufacturing businesses, ICAD IV provides modern industrial units with high-tech amenities.

ICAD V

ICAD V caters specifically to automotive and automobile manufacturing companies, providing large-scale plots and specialized infrastructure.

Key Benefits Across Clusters:

• Optimized layouts for manufacturing and logistics.
• Connectivity to main highways, airports, and ports.
• Utility connections: electricity, water, gas, and telecommunications.
• Access to staff accommodation and residential amenities.

Infrastructure & Facilities in ICAD

ICAD’s infrastructure is designed to support industrial operations at scale:

Industrial Land Plots

Investors can select from various plot sizes depending on their business requirements. Each plot is strategically positioned with access to power, water, sewage, and natural gas, ensuring smooth operations.

Logistics & Connectivity

ICAD provides integrated logistics services to minimize operational overheads. Businesses benefit from close proximity to transportation hubs, allowing quick shipment of goods both locally and internationally.

Employee Accommodation & Amenities

ICAD ensures high-quality residential facilities for management staff and laborers. Investors need not worry about commuting or housing logistics, as ICAD’s accommodation is within close range of industrial zones.

Step-by-Step Business Setup Process in ICAD

Starting a business in ICAD is straightforward if proper guidance is followed. Here is the typical process:

1. Determine Business Activity – Select the industrial sector and activities your company will undertake.
2. Choose a Legal Structure – Options include LLC, branch, or free zone establishment.
3. Reserve a Company Name – Ensure compliance with UAE naming conventions.
4. Prepare and Submit Documents – Business plan, shareholder details, passports, and NOCs.
5. Select a Facility or Land Plot – Match your operations with an appropriate cluster.
6. Obtain License – Finalize approval from ZonesCorp and receive the trade license.

Timeline: With all documents in order, the process can take 2–4 weeks, but delays often occur due to incomplete documentation or compliance checks.

Tips: Partnering with consultants like Business and Beyond can significantly reduce setup time and ensure regulatory compliance.

Costs, Fees, and Investment Requirements

Investors should consider all cost components before starting operations:

• License & Registration Fees: Depend on legal structure and business activity.
• Land Lease Costs: Vary based on cluster, size, and location.
• Visa & Staff Costs: Includes employee visas, accommodation, and health insurance.
• Operational Expenses: Utilities, logistics, and maintenance.

Tip: ICAD offers cost-effective land and flexible packages for startups and SMEs, making it a financially viable option for foreign investors.

ICAD vs Other UAE Free Zones

To make an informed decision, investors often compare ICAD with other industrial free zones:

Feature	ICAD Abu Dhabi	Dubai Industrial City	KIZAD (Abu Dhabi)
Size	40 sq km	33 sq km	20+ sq km
Industry Focus	Manufacturing, Logistics	Logistics, E-commerce	Heavy & Light Industries
License Cost	Moderate	Higher	High
Connectivity	Excellent	Good	Excellent
Employee Accommodation	Available	Limited	Available
Tax Incentives	0% Corporate Tax	0% Corporate Tax	0% Corporate Tax

ICAD stands out for its strategic location, cluster diversity, and cost-effective industrial plots.

Success Stories & Case Studies

Several companies have flourished in ICAD due to the supportive ecosystem:

• ABC Manufacturing LLC – Expanded operations rapidly in ICAD II, benefiting from logistic support and proximity to ports.
• XYZ Tech Solutions – Leveraged ICAD IV facilities to establish a high-tech electronics assembly line with access to skilled labor.
• Global Steel Corp – Operates in ICAD I for heavy metal manufacturing, optimizing supply chains via the free zone’s connectivity.

Tip: Investors can replicate these success strategies by choosing the right cluster and consulting experts during setup.

Government Incentives & Support Services

ICAD offers several advantages for investors:

• Tax Benefits: Zero corporate and personal income tax.
• Business Support Services: Licensing, visa processing, and regulatory compliance assistance.
• Infrastructure & Logistics Grants: Reduced costs for industrial development and shipping.

Business and Beyond assists investors in leveraging these incentives, ensuring a smooth and profitable start.

Compliance Requirements

All businesses in ICAD must comply with UAE regulations, including:

• Economic Substance Regulations (ESR) – Demonstrating sufficient local economic activity.
• Ultimate Beneficial Ownership (UBO) – Maintaining transparent ownership records.
• Anti-Money Laundering & Combating Financing of Terrorism (AML-CFT) – Ensuring lawful operations.

Failure to comply can result in penalties, fines, or license suspension. Partnering with professional consultants ensures all regulatory requirements are met efficiently.

Expert Advice

ICAD offers an unparalleled ecosystem for industrial businesses in Abu Dhabi, providing strategic location, modern infrastructure, cost-effective solutions, and investor-friendly policies. However, navigating the setup process and regulatory compliance requires expertise.

Business and Beyond provides end-to-end services for ICAD investors, including:

• Company formation and licensing
• Visa processing and labor solutions
• Bank account opening and operational support
• Compliance with ESR, UBO, and AML-CFT

Partnering with expert consultants ensures that investors can focus on business growth while we handle the complexities of ICAD setup.

Contact Business and Beyond today to start your industrial business in ICAD with confidence.