Industrial City of Abu Dhabi (ICAD) – Business Setup Guide 2025

Step-by-Step ICAD Business Setup Process

1. Select Your Business Activity & Cluster – Identify the right ICAD zone for your operations.
2. Submit Application to ZonesCorp – Include business plan, financials, and proposed activity.
3. Obtain Initial Approvals – From ZonesCorp and relevant authorities.
4. Lease Industrial Land or Facility – Secure your plot or warehouse.
5. Complete Construction & Fit-Out – Follow ICAD’s building regulations.
6. Receive Final License & Start Operations – After compliance checks are complete.

Industrial City of Abu Dhabi (ICAD) Overview

The Industrial City of Abu Dhabi (ICAD) is one of the UAE’s largest and most advanced industrial hubs.
Located just 30 km from Abu Dhabi city, ICAD spans thousands of hectares and is designed to host manufacturing, engineering, and logistics companies across diverse industries.

Managed by ZonesCorp, ICAD offers purpose-built clusters with world-class infrastructure, direct highway connectivity, and proximity to key transport links such as Abu Dhabi Ports and Etihad Rail.

Why Set Up a Business in ICAD?

Setting up in ICAD offers a range of advantages:

• 📍 Strategic Location – Close to Abu Dhabi International Airport, Khalifa Port, and Etihad Rail.
• 🏭 Specialized Clusters – Purpose-built zones for specific industries.
• ⚡ Reliable Infrastructure – Power, water, and telecom networks designed for industrial use.
• 💰 Cost-Effective Leasing – Competitive land lease rates compared to other UAE industrial zones.
• 🌍 Global Connectivity – Access to GCC markets and beyond.
• 👷 Skilled Workforce Access – Proximity to labor accommodations and recruitment agencies.

ICAD Clusters Explained

ICAD is divided into five specialized clusters, each focusing on different industries:

ICAD I – Heavy & Medium Industries

• Covers steel manufacturing, engineering works, oil & gas equipment production, and large-scale industrial operations.

ICAD II – Light & Medium Manufacturing

• Ideal for food processing, packaging, building materials, and consumer goods manufacturing.

ICAD III – Chemicals, Construction & Hi-Tech

• Hosts companies in chemical processing, construction materials, plastics, and high-tech industries.

ICAD IV – Technology & Light Manufacturing

• Focuses on electronics, renewable energy components, and clean-tech solutions.

ICAD V – Automotive Manufacturing

• Dedicated to automotive assembly, spare parts manufacturing, and related services.

Types of Licenses in ICAD

Businesses can apply for different types of licenses, including:

• Industrial License – For manufacturing and processing activities.
• Commercial License – For trading activities within ICAD and the UAE.
• Service License – For logistics, maintenance, and support services.

ICAD Industrial Land & Facilities

• Industrial plots ranging from 5,000 sqm to 100,000+ sqm.
• Pre-built warehouses and workshops.
• Dedicated power substations and utility connections.
• Onsite labor accommodations and service facilities.

Cost of Setting Up in ICAD (2025 Update)

Costs vary based on land size, activity type, and licensing:

• Land Lease: From AED X per sqm/year (varies by cluster).
• License Fees: AED X – AED X annually.
• Construction Permits: Based on project scope.
  💡 Tip: Bundling licensing and leasing through a business setup consultant can save time and reduce

Q: Is ICAD a free zone or mainland?
A: ICAD operates under mainland jurisdiction but with special industrial incentives.

Q: Can a foreign investor own land in ICAD?
A: Foreigners can lease long-term but not own freehold land in ICAD.

Q: Is Etihad Rail connected to ICAD?
A: Yes, Etihad Rail is set to connect ICAD to major UAE ports and GCC markets.

Q: What is the minimum investment to start in ICAD?
A: It depends on your industry, but land and facility leasing typically start from AED X annually.