Set up in Masdar City — Abu Dhabi's sustainability and clean-technology hub. Home to IRENA, MBZUAI, the UAE Space Economic Zone and a planned R&D cluster, with 100% ownership and 0% import tariffs.
Masdar City was built by Masdar, a Mubadala Investment Company subsidiary, and launched in 2006 as Abu Dhabi's sustainability and clean-technology hub and approved R&D cluster. Home to IRENA, MBZUAI, the UAE Space Economic Zone, Siemens and Honeywell, its free zone offers 100% foreign ownership, 0% import tariffs and a One-Stop Shop.
Masdar City was built by Masdar, a subsidiary of Abu Dhabi's Mubadala Investment Company, and launched in 2006 as one of the world's most ambitious sustainable-city projects, with construction beginning in 2008. It is designed around low-carbon principles — passive design, shading and renewable power — and has become Abu Dhabi's planned and approved research-and-development cluster, anchoring the emirate's clean-technology, space, AI and innovation economy.
Its tenant base is unusual: the headquarters of the International Renewable Energy Agency (IRENA), the UAE Space Agency and the UAE's first Space Economic Zone, the Mohamed bin Zayed University of Artificial Intelligence (MBZUAI) — the world's first dedicated AI university — the Advanced Technology Research Council, and global names such as Siemens and Honeywell. The Masdar City Free Zone offers 100% foreign ownership, 0% import tariffs, cost-effective licensing and a 'One-Stop Shop' for business support — purpose-built for sustainability, deep-tech and R&D ventures.
Masdar City is a thesis-driven free zone — built for sustainability, clean technology and research. For renewable-energy, deep-tech, space and R&D ventures, the ecosystem, anchor institutions and credibility are unmatched in the region.
A purpose-built sustainability city with low-carbon design and a tenant base focused on renewables, energy storage and cleantech — the credibility of a Masdar City address matters to climate-tech founders and investors.
The headquarters of the International Renewable Energy Agency (IRENA) sits in Masdar City — placing renewable-energy ventures at the centre of the global policy and standards conversation.
The Mohamed bin Zayed University of Artificial Intelligence (MBZUAI) — the world's first dedicated AI university — and the Advanced Technology Research Council anchor a deep-tech and AI talent cluster.
The UAE Space Agency's Space Economic Zone in Masdar City supports space and satellite ventures with a tailored ecosystem — a rare specialisation among UAE free zones.
Masdar City is Abu Dhabi's designated R&D cluster, with corporate research centres (Siemens, Honeywell and others) alongside academic and government institutions — built for applied research and commercialisation.
100% foreign ownership, 0% import tariffs, cost-effective licensing and a One-Stop Shop for visas, permits and support — the practical free-zone basics handled simply.
Masdar City Free Zone supports the standard UAE free-zone licence categories, with technology, renewables and R&D activities particularly well served.
For cleantech, renewables, AI, deep-tech, space and R&D ventures — the core of the Masdar City ecosystem, with access to its research and institutional network.
For consultancy, engineering, sustainability advisory and other professional services operating from Masdar City.
For trading and distribution activities — including clean-technology equipment and products — benefiting from the free zone's 0% import tariffs.
Masdar City Free Zone recognises the standard UAE free-zone legal forms — the right one depends on shareholder count and whether you're incorporating fresh or extending an existing entity.
A limited-liability entity with one shareholder (individual or corporate) — the default for a solo founder or wholly-owned subsidiary.
A limited-liability entity with two or more shareholders — used for joint ventures and multi-owner businesses.
A branch of an existing UAE or foreign company, operating under the parent's name and balance sheet — no separate share capital required.
Five steps from activity selection to a banked, visa-ready entity, supported by the One-Stop Shop.
Select the activities and matching licence — technology / innovation, service / professional or commercial / trading.
Reserve the company name and submit the licence application with shareholder and activity documents through the free zone's One-Stop Shop.
Choose premises to match the licence — flexi-desk, co-working, serviced or leased office space within Masdar City.
On approval, the trade licence and establishment card are issued, enabling visa allocation.
Open the corporate bank account and process investor and employee visas with Emirates ID and medicals.
The standard free-zone document set — corporate shareholders add a few group documents.
Masdar City pairs free-zone basics with an innovation and sustainability ecosystem few zones can offer.
Masdar City entities are subject to UAE Federal Corporate Tax and can qualify for the 0% QFZP rate. The free zone offers 0% import tariffs; VAT applies in the standard way.
Masdar City entities follow UAE Federal Corporate Tax under Decree-Law 47/2022 — 9% on taxable income above AED 375,000. Most can elect the Qualifying Free Zone Person (QFZP) regime and pay 0% on Qualifying Income.
Masdar City entities follow standard UAE VAT — 5% on taxable supplies, AED 375,000 mandatory registration threshold, with input-tax recovery on business costs. The free zone's 0% import tariff is a customs benefit, separate from VAT.
Sources & official references: Federal Decree-Law 47/2022 (Corporate Tax) · Cabinet Decision 100/2023 (QFZP) · Federal Decree-Law 8/2017 (VAT) · Cabinet Decision 59/2017 (VAT Designated Zones)
Masdar City's tenant base reflects its sustainability and innovation mandate.
Avyanco runs Masdar City engagements end-to-end — from activity scoping through to a banked, visa-ready entity registered for Corporate Tax and VAT.
We match the business to the right licence and help position it within the Masdar City cleantech, R&D and innovation ecosystem.
Structuring that accounts for R&D, IP-holding and grant or partnership arrangements — relevant for deep-tech and cleantech ventures.
Introductions to UAE banks active with Masdar City tenants, with the compliance file onboarding requires.
Investor and employee visas processed alongside Emirates ID and medicals through the free zone's One-Stop Shop.
FTA registrations and ongoing filings — including QFZP eligibility assessment for the 0% qualifying-income rate.
Licence renewals, audited financials, ESR, UBO and AML handled so the entity stays in good standing.
Partner-level advisors covering every leg of a Masdar City setup — formation, structuring, tax and ongoing compliance.
Three things that come up in every Masdar City engagement once the licence is issued.
We set up renewables, cleantech, AI and R&D ventures — we understand the ecosystem, the activities and the structuring that fit.
Licence, premises, bank, visas and tax — handled by one team on one engagement letter.
Recommendations shaped by how research, IP and grant-funded ventures actually operate — not a generic SME template.
Masdar City suits cleantech, renewables, AI, space and R&D ventures. Other zones serve different sectors — compare here.
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Read moreA slice of recent feedback from founders who set up their UAE companies through Avyanco.
We are very satisfied with Avyanco's support for Nanasu Realty — especially across AML compliance, accounting, and company setup.
Read more — Purushottam Mukkundi's review on GoogleI've used the services of Avyanco twice over the past 3 years for visa processing, and they have never failed to impress me.
Read more — Dominic Pinto's review on GoogleI had an excellent experience with Avyanco Business Setup Consultancy for both my company formation and family dependent visa process in the UAE.
Read more — Eder Schaphauser Ziomek's review on GoogleWe had an excellent experience working with this company for our ADGM company setup in Abu Dhabi.
Read more — Nikhil Nadanga's review on GoogleI have been dealing with Akshta for more than a year now and she has been very professional.
Read more — Sherif Ayub's review on GoogleIn so far as the emigration process can ever be made easy, Avyanco achieves exactly this.
Read more — Sheru George's review on GoogleCommon questions about setting up in Masdar City Free Zone, Abu Dhabi.
Content verified against the official Masdar City site (masdarcity.ae) and corroborating public sources as of June 2026. Avyanco Business Consultancy LLC is independent of Masdar City, Masdar, the Mubadala Investment Company and all UAE government authorities, and is not affiliated with or endorsed by any of them.
Free zone licence categories, incentives, ecosystem tenants, Corporate Tax Qualifying Free Zone Person eligibility and VAT Designated-Zone status evolve. Always confirm the current rules for your specific activity directly with the Masdar City Free Zone authority and the Federal Tax Authority before acting on any fact on this page.
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Speak to an Avyanco partner about a Masdar City licence scoped to your business — a cleantech, renewables, AI, space or R&D venture in Abu Dhabi's sustainability hub.
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