KEZAD 2026: Abu Dhabi’s Largest Trade, Logistics, and Industrial Zone

KEZAD (Khalifa Economic Zones Abu Dhabi) is the largest integrated trade, logistics, and industrial zone in Abu Dhabi and the wider region, formed on 19 September 2022 by AD Ports Group through the merger of Khalifa Industrial Zone Abu Dhabi (KIZAD) and Specialised Economic Zones (ZonesCorp). The zone spans 12 economic zones across roughly 550 km² in Abu Dhabi, Al Ain, and Al Dhafra, of which approximately 100 km² is designated as Free Zone, with the remainder operating as a Domestic Economic Zone — a mainland-equivalent jurisdiction under the same operator. Unlike Masdar City Free Zone and most Dubai zones, a key part of KEZAD (Khalifa Industrial Zone) is officially included in the VAT Designated Zones list under Cabinet Decision No. 59 of 2017.

⚠ KEZAD combines two fundamentally different models under one operator: Free Zone (100% foreign ownership, for international trade) and Domestic Economic Zone — a mainland equivalent for direct access to the UAE and GCC markets with no territorial restrictions. The choice between them determines both the tax treatment and the available business activities.

1. History: From AD Ports to KEZAD

The zone’s regulatory origin traces back to Abu Dhabi Ports PJSC, a company established by Emiri Decree No. 6 of 2006 as part of restructuring the emirate’s ports sector. This entity subsequently developed Khalifa Industrial Zone Abu Dhabi (KIZAD) as an industrial hub adjacent to the then under-construction Khalifa Port.

On 19 September 2022, AD Ports Group announced the launch of KEZAD Group — a consolidated structure merging KIZAD and Specialised Economic Zones (ZonesCorp) into a single economic zones operator for the emirate. This broadened and diversified Abu Dhabi’s free zone and mainland zone offering under a unified brand and management.

⚠ The exact founding date of Khalifa Industrial Zone itself (prior to its consolidation into KEZAD) is cited by various sources as approximately 2012 — this point requires verification directly with the operator, as no publicly available official document with a precise date could be located. The launch date of the KEZAD brand and structure itself — 19 September 2022 — is reliably confirmed.

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2. Scale and Location

KEZAD is the largest operator of integrated economic zones in the UAE: 12 zones spanning approximately 550 km² across Abu Dhabi, Al Ain, and Al Dhafra. The zone directly adjoins Khalifa Port — a multipurpose deep-water port ranked 3rd globally on the 2022 Container Port Performance Index. AD Ports Group projects that by 2030, KEZAD will contribute up to 15% of Abu Dhabi’s non-oil GDP.

Its geographic position is roughly equidistant between Abu Dhabi and Dubai, with frontage along the E11 highway connecting the two emirates. This gives KEZAD multimodal logistics: sea access via Khalifa Port, road connectivity, air access within reach of three major airports, and planned future rail links.

3. Comparison with Other Abu Dhabi and Dubai Zones

Parameter	KEZAD	Masdar City Free Zone	DMCC
Profile	Heavy industry, logistics, port operations	Clean-tech, sustainability	Trading, commodities, services
Land area	~550 km² (12 zones)	—	—
VAT Designated Zone status	Yes (Khalifa Industrial Zone / Free Trade Zone of Khalifa Port)	No	No
Model	Free Zone + Domestic Economic Zone (mainland-equivalent) under one operator	Free Zone only	Free Zone only
Port/logistics access	Directly adjacent to Khalifa Port	No direct port frontage	No direct port frontage

KEZAD’s profile differs fundamentally from Masdar City Free Zone (clean technology) and most Dubai zones oriented toward trading and services. Key industry clusters at KEZAD include metals and alloys, polymers and building materials, food processing, pharmaceuticals, automotive, and logistics. The anchor tenant is Emirates Aluminium (EMAL), one of the world’s largest single-site aluminium smelters, operating since 2009.

4. Licence Types

Licence type	What it permits
Trading / General Trading	Import, export, distribution, warehousing of goods
Industrial	Manufacturing, processing, assembly, packaging
Service	Consulting, management services, marketing, technical support
Logistics	Warehousing and logistics operations, freight forwarding

Available legal structures include an FZ-LLC (for the Free Zone) and branches of existing companies, whether local or foreign. The Domestic Economic Zone operates under terms equivalent to mainland licensing through the relevant emirate’s Department of Economic Development, including direct access to trade within the UAE market without the territorial restrictions typical of a standard free zone.

5. Designated Zone Status: The Key Tax Distinction

Under the annex to Cabinet Decision No. 59 of 2017, whose official text explicitly names “Free Trade Zone of Khalifa Port” on the Designated Zones list, this KEZAD-associated territory holds Designated Zone status for VAT purposes. Secondary sources also cite “Khalifa Industrial Zone (KIZAD)” as a separate entry on the same list — this specific detail was not confirmed directly from a primary-text citation during this review and should be verified against the current list on the tax.gov.ae portal before relying on it. For the portion of the territory confirmed to be on the list, goods transactions may qualify for treatment as “outside the scope of UAE VAT” — subject to prescribed conditions (a physically fenced area, customs-controlled movement of goods, and documentation confirming the goods are not consumed within the zone).

⚠ Designated Zone status applies EXCLUSIVELY to the movement of goods — services supplied within such a zone are subject to standard 5% VAT on the usual basis. VAT registration remains mandatory once the AED 375,000 taxable turnover threshold is exceeded, regardless of the zone’s status.

ℹ The VAT Designated Zones list and the Corporate Tax Qualifying Free Zones list (for the 0% QFZP rate) are two SEPARATE lists established under different instruments (Cabinet Decision No. 59 of 2017 for VAT; Ministerial Decision No. 265 of 2023 together with Cabinet Decision No. 100 of 2023 for Corporate Tax). A zone may appear on one list without appearing on the other — status must be verified separately for each tax.

The FTA’s official CTGFZP1 guide clarifies the relationship between the two regimes: for Corporate Tax purposes, a Designated Zone is defined as “a designated zone according to what is stated in Federal Decree-Law No. 8 of 2017, and which has been included as a Free Zone in accordance with the Corporate Tax Law” — meaning a Designated Zone automatically falls within the legal perimeter of the Free Zone regime under the Corporate Tax Law. This does NOT, however, grant automatic QFZP status or the 0% rate — all QFZP conditions described in the following section must still be independently satisfied.

6. Corporate Tax and QFZP

For Corporate Tax purposes, companies registered in the Free Zone portion of KEZAD are treated as Free Zone Persons and can apply for the 0% rate on qualifying income subject to Qualifying Free Zone Person (QFZP) conditions under Federal Decree-Law No. 47 of 2022 — the same federal rules that apply to all UAE free zones: adequate economic substance, income predominantly from qualifying activities, and compliance with the de minimis rules on non-qualifying income.

✅ Loss of QFZP status triggers a minimum five-year disqualification period before requalification is possible — a general federal rule, not specific to KEZAD, but particularly important to factor in when planning structures for industrial companies with capital-intensive, long-term projects.

7. Step-by-Step Registration Process

1.     Determine the model: Free Zone (for international trade, 100% foreign ownership) or Domestic Economic Zone (for direct access to the UAE/GCC market).

2.     Select the business activity and corresponding licence type — Trading, Industrial, Service, or Logistics.

3.     Choose the facility type: a serviced land plot for development, a pre-built warehouse (KIZAD Logistics Park), or office space.

4.     Submit the application through the KEZAD Group portal with constitutional documents and a business plan.

5.     Obtain initial approval and pay the licensing and registration fees.

6.     Register for VAT and Corporate Tax through the EmaraTax portal as needed, confirming the applicability of Designated Zone status for the specific location within KEZAD.

7.     Process resident visas for founders and employees according to the allocated visa quota.

8. Who This Fits

•       Industrial and manufacturing companies needing large-scale infrastructure. Pre-built warehouses, developable land plots, and direct adjacency to a deep-water port make KEZAD a natural fit for heavy industry.

•       Logistics and distribution companies. Direct access to Khalifa Port and multimodal connectivity (sea, road, future rail) reduce logistics costs.

•       Companies needing simultaneous access to international trade and the UAE mainland market. The unique dual Free Zone + Domestic Economic Zone model under one operator simplifies this combination.

9. Who This Does Not Fit

•       Small service and consultancy companies with no physical operations. KEZAD’s infrastructure and positioning are geared toward industry and logistics — zones like DMCC or Meydan are a better fit for pure consultancy.

•       Businesses relying on a prestigious central Dubai address. KEZAD sits between Abu Dhabi and Dubai but is territorially part of Abu Dhabi — this may be suboptimal for brands dependent on a Dubai location.

FAQ

What is the difference between KEZAD and KIZAD?

KIZAD (Khalifa Industrial Zone Abu Dhabi) is the original industrial zone. KEZAD (Khalifa Economic Zones Abu Dhabi) is the consolidated structure formed on 19 September 2022 through the merger of KIZAD and ZonesCorp. Today, KIZAD exists as one of the 12 zones within the broader KEZAD group.

Is KEZAD a VAT-free zone?

Not entirely. A key part of its territory (Khalifa Industrial Zone and Free Trade Zone of Khalifa Port) is on the Designated Zones list, which provides special VAT treatment only for goods transactions meeting specific conditions — it does not exempt businesses from VAT generally or remove the mandatory registration requirement once the turnover threshold is exceeded.

Can a business operate in both the Free Zone and the mainland through KEZAD?

Yes, this is a defining feature of KEZAD — a single operator offers both Free Zone and Domestic Economic Zone facilities, simplifying the combination of international trade with direct access to the UAE market.

Which industries are most represented in KEZAD?

Metals and alloys, polymers, building materials, food processing, pharmaceuticals, automotive, and logistics — with Emirates Aluminium (EMAL), one of the world’s largest aluminium smelters, as the anchor tenant.

Key Takeaways

•       KEZAD was formed on 19 September 2022 through the merger of KIZAD and ZonesCorp under AD Ports Group.

•       Scale: 12 zones, approximately 550 km², directly adjoining Khalifa Port.

•       A key part of its territory is on the VAT Designated Zones list — but this applies only to the movement of goods.

•       The VAT Designated Zones list and the Corporate Tax Qualifying Free Zones list are separate and must be checked independently.

•       Unique model: Free Zone + Domestic Economic Zone under one operator.

•       Profile: heavy industry, metals, logistics — distinct from Masdar City’s clean-tech focus or DMCC’s trading orientation.

Summary

KEZAD (Khalifa Economic Zones Abu Dhabi) is the largest integrated trade, logistics, and industrial zone in Abu Dhabi, formed on 19 September 2022 by AD Ports Group through the merger of Khalifa Industrial Zone Abu Dhabi (KIZAD) and Specialised Economic Zones (ZonesCorp). The zone spans 12 economic zones covering approximately 550 km², adjoins Khalifa Port, and combines Free Zone (100% foreign ownership) and Domestic Economic Zone (mainland-equivalent) models under a single operator. A key part of its territory — Khalifa Industrial Zone and Free Trade Zone of Khalifa Port — is officially on the VAT Designated Zones list under Cabinet Decision No. 59 of 2017, providing special treatment for goods transactions. For Corporate Tax, companies can apply for the 0% rate subject to Qualifying Free Zone Person (QFZP) conditions under Federal Decree-Law No. 47 of 2022. The zone’s industry profile centres on heavy industry, metals, polymers, food processing, automotive, and logistics.

Sources

• Ministry of Economy and Tourism UAE — Khalifa Industrial Zone Abu Dhabi (KIZAD), official free zone registry page (moet.gov.ae)

• Federal Tax Authority — VAT Guide on Designated Zones (VATGDZ1), official document (tax.gov.ae)

• Federal Tax Authority — Corporate Tax Guide on Free Zone Persons (CTGFZP1) (tax.gov.ae)

• PwC — UAE: VAT Guide on Designated Zones, commentary on the FTA guide (pwc.com)

• KPMG — Corporate Tax Guide on Free Zone Persons released by the Federal Tax Authority (kpmg.com)

• The Abu Dhabi Government Media Office — KEZAD Group, official profile (mediaoffice.abudhabi)

• KEZAD Group — official website (kezadgroup.com)

• AGBI (Gulf Business Intelligence) — Kezad News and Company Profile (agbi.com)

• Wikipedia — Khalifa Industrial Zone, historical overview with primary sourcing (en.wikipedia.org)

Disclaimer

This material is for informational purposes only and does not constitute legal, tax, financial, investment, or consulting advice. Exact tariffs, fees, and packages are updated regularly — request a current quotation directly from KEZAD Group before making decisions. Before making any decisions, obtain individual professional advice. Information is accurate as of June 2026.