The Industrial City of Abu Dhabi (ICAD) stands as one of the UAE’s most prominent economic zones, designed to support Abu Dhabi’s vision of diversifying its economy beyond oil and gas. Strategically located close to major logistics hubs, highways, and ports, ICAD plays a critical role in the emirate’s industrial development and has become a hub for manufacturing, engineering, logistics, and more.
From world-class infrastructure to investor-friendly policies, ICAD continues to attract local and international companies seeking industrial opportunities in the Gulf region. In this article, we will explore the Industrial City of Abu Dhabi in depth—including its zones, advantages, sectors, and future outlook.
What is the Industrial City of Abu Dhabi (ICAD)?
The Industrial City of Abu Dhabi (ICAD) is a massive industrial zone developed and managed by the Abu Dhabi Ports Group through its subsidiary ZonesCorp. Covering more than 40 square kilometers, ICAD is located in Mussafah, about 30 kilometers from Abu Dhabi city center and near key ports such as Khalifa Port and Zayed Port.
ICAD has been carefully planned and zoned to meet the needs of various industries, offering specialized infrastructure, utilities, and support services.
ICAD Zones: A Breakdown
The industrial city is divided into several zones, each tailored to specific industrial activities:
1. ICAD I
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Focus: Heavy industries such as metal, steel, and engineering
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Companies: Emirates Steel, Gulf Steel, Emirates Float Glass
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Advantages: High load capacity roads, access to logistics, and large land parcels
2. ICAD II
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Focus: Light to medium manufacturing, logistics, packaging
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Companies: Automotive parts manufacturers, food processors
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Proximity to Mussafah Port and key supply chain networks
3. ICAD III
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Focus: High-tech and specialized industries like pharmaceuticals, electronics, and advanced plastics
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Features: Clean tech support, innovation spaces, and R&D facilities
Each zone within ICAD is designed to promote operational efficiency, reduce logistics costs, and ensure seamless connectivity between industrial operations and transport hubs.
Strategic Location and Connectivity
ICAD’s location is one of its most significant advantages. Situated along E11 and E30 highways, the area connects directly to:
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Abu Dhabi city (30 min)
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Abu Dhabi International Airport (20 min)
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Khalifa Port and Free Trade Zone
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Dubai and Al Ain (within 1.5 hours)
The Etihad Rail Project, which aims to link all the Emirates by rail, will further enhance ICAD’s logistics capabilities once complete. This connectivity provides businesses within ICAD fast access to domestic and international markets.
Key Sectors and Industries
The Industrial City of Abu Dhabi supports a wide range of industries, each benefiting from tailored infrastructure, support services, and government incentives. Some of the primary sectors include:
1. Metals and Steel
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Major investments from Emirates Steel and Gulf Extrusions
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Manufacturing of structural steel, pipes, and construction materials
2. Engineering and Machinery
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Fabrication plants, machinery components, and industrial tools
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ICAD provides facilities with crane capacity and reinforced flooring
3. Pharmaceuticals and Healthcare Products
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Growth in medical equipment and drug manufacturing
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Ideal for regional supply and export to GCC and MENA markets
4. Food and Beverage
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Processed foods, bottling, and packaging companies
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Access to cold storage and distribution centers
5. Plastics and Chemicals
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Facilities for packaging, PVC, insulation, and industrial chemicals
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Stringent safety and environmental compliance support
6. Automotive and Spare Parts
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Assembly, tire distribution, and component manufacturing
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Growing demand driven by GCC vehicle market
Advantages of Setting Up in ICAD
Several factors make the Industrial City of Abu Dhabi an attractive investment destination:
1. World-Class Infrastructure
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Wide roads, utility corridors, drainage systems, and power availability
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Customizable plot sizes to suit heavy and light industrial needs
2. Investor-Friendly Environment
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100% foreign ownership (depending on business activity)
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Quick licensing and land leasing procedures via ZonesCorp
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Support for project approvals, worker accommodation, and labor visas
3. Proximity to Workforce
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Nearby residential communities in Mussafah and Mohammed Bin Zayed City
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Labor cities and staff housing integrated within the zone
4. Logistics Integration
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Easy access to highways, seaports, and airports
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Availability of warehousing and third-party logistics services
5. Tax Incentives and Free Zone Benefits
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While ICAD itself is not a free zone, businesses can benefit from:
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0% corporate and personal income tax
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No restrictions on repatriation of profits
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Customs exemptions for certain goods
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Business Setup Process
Setting up a business in ICAD is made efficient through ZonesCorp, which acts as the regulatory body and facilitator. The setup process generally involves:
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Initial Consultation: Discuss project requirements and location preferences
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Land Allocation: Choose a plot based on business size and industry
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License Application: Apply for an industrial license through ADDED (Abu Dhabi Department of Economic Development)
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Construction & Development: Build or fit-out factory/warehouse
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Operations Launch: Commence business activities with full support for labor and logistics
The entire process is streamlined with dedicated account managers and government liaisons.
Living and Working Near ICAD
Many employees working within ICAD live in the nearby residential areas of Mohammed Bin Zayed City, Mussafah, or Khalifa City. These locations offer:
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Affordable housing
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Schools, clinics, mosques, and shopping malls
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Reliable public transport and taxi services
Companies also have the option to house laborers in ZonesCorp-operated labor accommodations, which meet all regulatory standards and welfare guidelines.
Sustainability and Innovation
ICAD is evolving to meet Abu Dhabi’s long-term sustainability goals. Green building regulations, waste management practices, and environmental monitoring are part of the planning process.
Future plans include:
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Smart infrastructure
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Digitized facility management
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Support for renewable energy industries
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Recycling and circular economy initiatives
Investment Opportunities and Future Outlook
Abu Dhabi’s industrial sector is set to expand rapidly under Abu Dhabi Economic Vision 2030, which seeks to reduce dependence on hydrocarbons. ICAD will continue to play a central role in this transition.
Promising areas for investment include:
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Clean manufacturing technologies
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Additive manufacturing and 3D printing
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Green construction materials
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Biotechnology and medical supplies
The government also offers funding opportunities through Abu Dhabi Investment Office (ADIO) and incentives for innovation-focused businesses.
Final Thoughts
The Industrial City of Abu Dhabi (ICAD) is more than just a manufacturing zone—it’s a cornerstone of the UAE’s industrial transformation. With its world-class infrastructure, investor-friendly policies, and strategic location, ICAD offers an unmatched opportunity for companies aiming to scale in the Middle East and beyond.
Whether you’re a multinational corporation or a regional startup, ICAD provides the tools, support, and environment to grow your industrial operations sustainably and profitably.