Masdar City Free Zone
Masdar City Free Zone is Abu Dhabi's dedicated hub for clean energy, sustainability and technology businesses, set within one of the world's most ambitious sustainable urban developments. It suits cleantech, renewables, ESG and innovation-driven companies wanting a green Abu Dhabi base. AOPA member firms support Masdar City companies with accounting, audit and UAE Corporate Tax.
Overview
Masdar City is Abu Dhabi's flagship sustainable city, about 17 km from Abu Dhabi International Airport, and its free zone is the UAE's best-known clean-energy jurisdiction. It hosts renewable-energy developers, technology firms and international organisations focused on sustainability and innovation, alongside R&D institutions and a growing cluster of startups and SMEs.
Who it suits
The free zone is aimed at businesses in solar and wind, energy storage, hydrogen, waste and water management, green building, environmental and ESG consultancy, smart-city and electric-mobility technology, plus IT, media and professional services that align with its sustainability ethos. It is popular with technology firms, consultancies and headquarters operations wanting a credible green address.
Licences and activities
Masdar City Free Zone issues commercial, service/professional and other activity-based licences covering a wide range of technology, consultancy and trading activities. Investors can pick from flexible packages, from desk-based and co-working options to dedicated offices, with 100% foreign ownership and no local sponsor required.
Setting up
Steps: (1) reserve and obtain approval for the company name; (2) select the licence type and workspace package; (3) submit the business plan and incorporating documents; (4) receive the licence, which can largely be completed remotely; (5) attend in person only for visa biometrics (entry permit, medical and Emirates ID); (6) open a corporate bank account.
Accounting and audit requirements
Masdar City companies should maintain proper accounting records and prepare financial statements; audited accounts are generally expected at renewal and for banking. Every entity must register for UAE Corporate Tax with the Federal Tax Authority and assess eligibility for the 0% qualifying free-zone rate, with VAT and Economic Substance considered where relevant. AOPA member firms deliver Masdar City accounting, audit and Corporate Tax compliance.
Frequently asked questions
What kind of businesses can set up in Masdar City Free Zone?
It focuses on clean energy, sustainability, cleantech, ESG and technology, but also accommodates aligned consultancy, IT, media and professional-services companies wanting a green Abu Dhabi base.
Can I form a Masdar City company remotely?
Yes. Name approval, document submission and licence issuance can be completed remotely. Physical presence is only needed for visa biometrics if you require a UAE residence visa.
Is an office required in Masdar City Free Zone?
Flexible options range from desk-based and co-working packages to dedicated offices, so requirements depend on your licence and visa needs.
Do Masdar City companies pay Corporate Tax?
They fall within the UAE Corporate Tax regime and may qualify for 0% on qualifying income where free-zone conditions are met, but must still register with the Federal Tax Authority. AOPA member firms can advise.