As the United Arab Emirates (UAE) diversifies its economy beyond oil, one name continues to stand out in the realm of manufacturing and industrial development — the Industrial City of Abu Dhabi (ICAD). Strategically planned, technologically advanced, and globally connected, ICAD is one of the Middle East’s most influential industrial hubs.
From steel and automotive manufacturing to food processing and pharmaceuticals, ICAD plays a critical role in the economic transformation of Abu Dhabi and the wider region. In this detailed guide, we explore everything about the Industrial City of Abu Dhabi: its sectors, advantages, investment potential, and why it’s shaping the future of the UAE.
What Is the Industrial City of Abu Dhabi (ICAD)?
The Industrial City of Abu Dhabi (ICAD) is a sprawling industrial development located in Mussafah, approximately 30 kilometers from the city center. It is managed by the Abu Dhabi Ports Group through its industrial arm, ZonesCorp, and is one of the most strategically important economic zones in the UAE.
ICAD is designed to support large-scale manufacturing and logistics operations, offering a business-friendly environment with modern infrastructure and seamless supply chain access.
The Structure of ICAD
ICAD is divided into three major zones, each focusing on different industrial sectors:
✅ ICAD I
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Heavy industries such as steel manufacturing, chemicals, and engineering
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Large industrial plots with advanced utilities
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Hosts flagship companies like Emirates Steel and Ducab
✅ ICAD II
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Medium and light industries including automotive assembly, plastic processing, and construction materials
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Home to a variety of SMEs and multinational corporations
✅ ICAD III
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Specializes in high-tech industries, logistics, food processing, pharmaceuticals, and renewable energy
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Ideal for innovation-driven businesses looking to scale
Each zone is designed with easy access to transport, utilities, and labor, enabling operational efficiency for businesses.
Why the Industrial City of Abu Dhabi Matters
✅ 1. Economic Diversification
ICAD is a cornerstone of Abu Dhabi Vision 2030, which aims to reduce the country’s reliance on oil by developing non-oil sectors. It supports manufacturing, trade, and innovation — all essential pillars of economic sustainability.
✅ 2. Strategic Location
Situated near Khalifa Port and major highways, ICAD offers:
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Easy access to global shipping routes
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Proximity to Abu Dhabi International Airport
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Connectivity to UAE’s logistics network
This makes it perfect for companies relying on imports, exports, and just-in-time delivery models.
✅ 3. World-Class Infrastructure
ICAD features:
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24/7 power and water supply
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Wastewater treatment facilities
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Natural gas pipeline connections
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Fire and safety systems
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Office and labor accommodation
This infrastructure supports high-volume, high-efficiency industrial operations.
Key Industries in the Industrial City of Abu Dhabi
ICAD hosts more than 400 manufacturers and continues to expand across several high-growth sectors:
🏗 Steel and Metal Manufacturing
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Emirates Steel Industries is one of the region’s largest integrated steel producers.
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The zone is also home to aluminum extruders and structural steel fabricators.
🚗 Automotive and Machinery
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Assembly plants for trucks, buses, and heavy machinery
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ICAD provides logistics and supply chain solutions tailored to automotive components
🏥 Pharmaceuticals and Healthcare Manufacturing
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With the UAE’s growing healthcare demand, ICAD supports companies in medical devices, supplements, and medicine production.
🍴 Food and Beverage Processing
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ICAD III is the go-to destination for food processors, packaging facilities, and cold storage warehouses.
⚙ Construction Materials
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From prefabricated concrete to glass and insulation materials, ICAD supports the UAE’s infrastructure boom.
💡 Renewable Energy and Sustainability
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Innovation parks and R&D centers in ICAD are focusing on solar panels, battery storage, and recycling systems.
Incentives for Businesses at ICAD
Setting up a business in the Industrial City of Abu Dhabi comes with several advantages:
✅ 100% Foreign Ownership
As part of UAE’s updated business laws, foreign investors can own 100% of their businesses in ICAD without a local sponsor.
✅ Fast Licensing and Permits
ZonesCorp offers streamlined licensing, helping companies start operations faster.
✅ Tax Benefits
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No personal income tax
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No import/export duties within the UAE
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Potential customs exemptions on raw materials and equipment
✅ Access to Labor
ICAD has dedicated zones for labor accommodations and a skilled workforce from various countries, making recruitment easier.
Sustainability and Innovation in ICAD
The UAE’s focus on green economy and sustainability is evident in ICAD’s policies:
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Energy-efficient facilities and LEED-certified buildings
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Waste management and recycling programs
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Solar energy pilot projects
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R&D collaboration with universities and innovation hubs
ICAD’s commitment to sustainability makes it attractive to investors who prioritize ESG (Environmental, Social, Governance) principles.
Recent Developments and Expansion
In recent years, ICAD has welcomed multiple high-profile investments:
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GlobalFoundries and other semiconductor companies are exploring opportunities.
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Chinese and European firms are establishing logistics bases in ICAD due to its access to Middle East and Africa.
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UAE-based startups are innovating in robotics and advanced manufacturing from ICAD III.
The Industrial City of Abu Dhabi continues to expand with plans for smart warehouses, tech incubators, and AI-powered logistics hubs.
How to Set Up a Business in ICAD
Step 1: Choose Your Sector and Zone
Decide whether your business is best suited for ICAD I, II, or III.
Step 2: Submit Application
Apply through ZonesCorp, providing business plans and operational details.
Step 3: Lease Land or Facilities
Choose from plots, warehouses, or ready-built units based on your needs.
Step 4: Licensing and Approvals
Receive industrial license, environmental permits, and labor accommodations if needed.
Step 5: Start Operations
Move in, connect utilities, and begin hiring staff or installing machinery.
ZonesCorp offers support at each step to streamline the setup process.
Comparison with Other UAE Industrial Zones
| Feature | ICAD | JAFZA (Dubai) | KIZAD (Abu Dhabi) |
|---|---|---|---|
| Proximity to Capital | Very close | Far from Abu Dhabi | Closer to Khalifa Port |
| Target Industries | Heavy, medium, tech | Logistics, trade | Light, port-centric |
| Setup Speed | Fast | Moderate | Fast |
| Cost of Setup | Competitive | Higher | Competitive |
ICAD is ideal for heavy industries and high-tech manufacturing, while other zones focus more on trade or port logistics.
Final Thoughts
The Industrial City of Abu Dhabi is more than just a collection of factories — it’s a key driver in the UAE’s journey toward economic diversification and industrial innovation. Whether you’re a multinational corporation or a growing startup, ICAD offers the infrastructure, support, and strategic location needed to thrive in today’s global economy.
With its forward-thinking development, eco-conscious policies, and investor-friendly ecosystem, ICAD is poised to become one of the leading industrial centers not only in the Middle East but across the world.
