KEZAD Business Setup Plan | Opportunities & Challenges
byIshika Bhandari Sep 15, 2025 6 MIN READ
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Planning to establish a business in the UAE? KEZAD (Khalifa Economic Zones Abu Dhabi) is most probably your best choice. This option is worth considering, especially if you’re looking into industrial growth, global logistics access, and full foreign ownership. Here is a complete guide to help you comprehend the merits, downsides, and what specific aspects make KEZAD a special option for business set up in 2025.
1. Introduction
The KEZAD has emerged as a powerful magnet for entrepreneurs and global investors as the UAE pushes forward with its economic diversification vision. Over 550 square kilometers alongside Khalifa Port, this massive industrial and free zone is engineered for high-impact businesses.
A KEZAD Business Setup offers unrivaled connectivity, advanced infrastructure, and scalable ecosystems for emerging, small, and even large corporations to operate.
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4. Types of Businesses You Can Start in KEZAD
KEZAD is highly flexible with regard to its business activities relative to sectors:
Heaviest manufacturing and industries, emerging giants such as metals, plastics, and chemicals
Logistics and warehouses catering to regional and international distribution
Agri-food and cold storage serving food processing and preservation
E-commerce and trading companies functioning in B2B and B2C
Sustainable ventures such as solar energy and recycling facilities
KEZAD aims to propel the industry-specific ecosystem by making available the right facilities and support.
5. Pros of KEZAD Business Setup
Here is a quick overview of the prime advantages of a KEZAD business setup plan:
100 percent foreign ownership without the need for a local sponsor
Tax incentives, including no personal and corporate income tax
No duty charges for imports or exports within the free zone
Scalable for small businesses and for global enterprises
Fast-tracked digitalized licensing and setup process
With these features, KEZAD becomes a future-proof destination for medium- to long-term investment.
6. Cons of KEZAD Business Setup
Indeed, while KEZAD has many strengths, it is not for everyone:
Higher setup costs and rentals than other, smaller free zones
Restrictions for businesses unrelated to logistics or manufacturing
Over-saturated market competition, especially in the logistics and industrial sectors
These considerations are necessary to guide the planning of one’s KEZAD business setup to meet strategic goals.
7. KEZAD vs Other UAE Free Zones
Here is a comparison between KEZAD and other major free zones: Here’s a quick comparison of MISA (Saudi Arabia) with JAFZA, RAKEZ, and IFZA (all UAE Free Zones), focusing on foreign business setup, ownership, and licensing ease:
MISA vs. JAFZA vs. RAKEZ vs. IFZA (Quick Comparison Table)
Feature
MISA (Saudi Arabia)
JAFZA (Dubai, UAE)
RAKEZ (Ras Al Khaimah, UAE)
IFZA (Dubai, UAE)
Jurisdiction
Mainland Saudi Arabia
Free Zone (Dubai)
Free Zone (RAK)
Free Zone (Dubai)
Ownership
Up to 100% foreign ownership in most sectors
100% foreign ownership
100% foreign ownership
100% foreign ownership
License Type
Investment license for foreign entities (MISA)
Free Zone license (trading, services, industrial)
Free Zone license (commercial, services, etc.)
Free Zone license (multiple activities)
Minimum Capital Requirement
SAR 500K–1M+ depending on sector
No minimum for most activities
AED 0–50K depending on license
AED 0–10K (low capital)
Local Sponsor Needed?
Not required in most sectors
Not required
Not required
Not required
Physical Office Requirement
Usually required (especially in industrial sectors)
Flexi desk or office options
Flexi desk to warehouses
Flexi desk options available
Time to Setup
4–8 weeks (depends on approvals)
1–2 weeks
3–10 days
3–7 days
Main Advantage
Access to Saudi market, government tenders, KSA growth
Dubai logistics hub, global connectivity
Cost-effective setup, industrial focus
Low-cost, multi-activity, Dubai address
Ideal For
Industrial, chemical, manufacturing, service companies
Trading, logistics, regional HQs
SMEs, manufacturers, consultancies
Startups, freelancers, consultancies
Select KEZAD if logistics, supply, or trade scalability are the bedrock for your business.
To help with global business expansion make sure you choose us.
Get in touch with our team to find out about our approach
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8. Step-by-Step KEZAD Business Setup Process
Starting your company in KEZAD is much more convenient than that.
Step 1: Choose Your Business Activity
Define what your planned business will do – Trading, manufacturing, or logistics.
Step 2: Select a License Type
Pick either Trading, Service, Industrial, or Logistics license.
Step 3: Submit Application and Documents
Including passports, proof of address, and a business plan if required.
Step 4: Choose Your Facility
Get a flexi-desk, warehouse, office, or custom land plot.
Step 5: Get License Approval
Upon approval, you may start operations and apply for visas.
9. How a Consultant Can Help in KEZAD Business Setup
Opening up a business in KEZAD seems simple, but the legal documentation, selection of facilities, and compliance can be tedious.
That’s where Arnifi comes in.
Why Work with Arnifi
Help in selecting the most appropriate business structure and license
Handles all documentation and government approvals
Selecting the best facility (desk, warehouse, or land)
Business bank account opening and visa processing
Tailored packages for startups, SMEs, and multinationals
The admin is under Arnifi’s expert team, having you focus on the growth aspect.
10. FAQs on KEZAD Business Setup
1. What is the cost of setting up a business in KEZAD?
The costs are variable, though, around AED 10,000 to 15,000 for licenses, and more than AED 15,000 for rental space. Cost for visas would approximately range between AED 3,500 and AED 5,000 per person.
2. Can foreign investors own 100 percent of KEZAD?
Yes, most business activities by KEZAD can be 100 percent foreign-owned.
3. What industries are best suited for KEZAD?
Industries like manufacturing, logistics, food processing, and e-commerce thrive because of the infrastructure and location provided by KEZAD.
4. How long does it take to get a license?
Usually, it takes 5 to 10 working days, depending on your activity and documentation.
11. Conclusion
KEZAD is fast becoming one of the best business zones in the UAE for industrial, logistics, and trade companies. This is due to strategic locations, full foreign ownership, advanced facilities, and business-friendly regulations that compel any company to set up.
However, it is not a one-size-fits-all solution. You need to go through the pros and cons, and if you have a serious intent to launch at KEZAD, let Arnifi guide your journey from strategy to setup and beyond.