The KIZAD Free Economic Zone is a logistics and industrial hub with opportunities to open a business. It is located in Abu Dhabi. The scope of frison’s activities includes industries that are related to engineering metal, aluminum, packaging and others. Let’s consider why it is profitable to open a business in this zone.
Overview of the free zone “KIZAD”
The date of foundation of KIZAD is considered to be the end of 2010. The frison occupies a large area. It enables businessmen and investors to trade freely.
Goals and purpose
According to the project, money is allocated for the development of the port, the construction of a park.
KIZAD is designed to build an industrial zone that will meet the conditions of investors, partners, and international standards.
Management tools are innovative technologies, as well as advanced industry experience. Thanks to the cluster system and the support of government agencies in the form of consultations, the process of building a business becomes comfortable.
Thanks to the system of industry clusters, an efficient supply chain of raw materials and processing is possible. This makes it possible to offer FEZ investors prices for renting real estate (commercial and residential type) lower than competitors, as well as reduced tariffs for utilities and energy.
The main clusters of industries in this zone include such areas as:
- chemical industry;
- production of aluminum, steel, technical components from metal;
- professional equipment for medicine, pharmaceuticals;
- food production;
- international trade;
- paper production;
- packaging, packaging of goods and others.
Structure and location of the frieze
The frison is divided into 1 large sectors:
- A – industrial. Companies of engineering, petrochemical and other industries are located here.
- B is a zone for consolidation of firms. We are talking about enterprises in the field of communications and IT. The sector also includes residential neighborhoods.
KIZAD is equally distant from Abu Dhabi and Dubai. It is located along the E11 motorway, which connects these cities. The frizone has access to Al Ain.
KIZAD Logistics Park
Partners and customers can use the capabilities of the logistics park. It consists of extensive warehouses, service structures for the shipment and storage of goods.
Frison is connected with the Port of Khalifa. The latter is considered the deepest object in the whole world, as well as the first regional semi-automatic marine structure.
The range of Port and frison services includes many long-lasting competitive advantages, for example, exceptional efficiency of the supply chain.
The port is served by 20 shipping lines that are connected to 50 ports. Thanks to this solution, it is possible to comfortably transport products, both domestically and internationally – to and from Abu Dhabi to anywhere in the world.
It is advantageous to open an enterprise in this zone, since there are 4 international airports located here:
- Abu Dhabi – 35 km;
- Al Maktoum – 52 km;
- Dubai – 85 km;
- Al Ain.
They have all the necessary equipment to carry out air cargo transportation.
Organization of simple highway delivery
By opening a business in KIZAD, you will be able to use the international road network in and around the industrial zone. Such a solution allows transport to move efficiently, to transport goods.
Highways connect Frizon with the markets of the Emirates, the territories of the Middle East.
Railway in “KIZAD”
The prospects of the zone are to provide the possibility of transporting goods by train at the expense of Etihad Rail. It is designed to connect with the Emirates and the rest of the GCC countries. It will be possible to take advantage of such an offer after the project is fully prepared.
Advantages of business in “KIZAD”
Advantages of starting a business:
- no taxes;
- competitive environment;
- dual licensing regime without a separate physical space and a local service agent;
- advantageous location;
- access to international markets;
- availability of global infrastructure;
- digitalization of services – a convenient process of registration, obtaining a license.
Since the frison includes several industrial clusters at once, certain industries and service providers are grouped on the territory. They benefit each other. For example, some investors may use products produced by others within this frison.
Among the industry innovations, we can single out those that give businesses a significant advantage:
- A track for molten metal. Provides energy efficient and economically profitable transportation of molten aluminum.
- Installation for cooling and desalination of seawater. Supports heavy industry from the tenant “EMAL”. The system guarantees the return of water to the sea, its cooling and the absence of harm to marine flora and fauna.
- Wide road. The large-sized equipment of the plant is transported along the eight-lane highway from the Port to the investor facilities and back.
Today, a project is being developed in the zone that will allow the deployment of operational personnel according to international standards specified in the labor regulations.
In the future, services will be replenished with housing within 5-10 minutes from the area.
Constant support for companies
What is the support of KIZAD for business:
- Support from the very beginning at every stage of the construction of the work.
- Ensuring competitive operating costs.
- Providing an opportunity to use favorable tariffs for water and electricity.
- The opportunity to rent land, warehouses, offices on attractive terms.
- Quick and easy registration process, license renewal, visa issuance.
There is no need to pay taxes in the zone:
- on income – both individuals and companies;
- on dividends and royalties;
- customs duties on import and export.
The withdrawal of profit and capital is also not limited.
Individual approach for companies in “KIZAD”
If you decide to create a business in this area, you will be able to choose land, ready-made warehouses, offices for rent.
Land lease for industry and logistics
The plots of land in KIZAD are planned for business flexibility. They can be divided or combined as you wish. Each plot is provided under a long-term contract, which is backed by mutually beneficial conditions.
Each warehouse has convenient loading docks for trucks and raised docking floor levels. Well-designed warehouse units also differ in design, thanks to which it is possible to create a mezzanine office.
The logistics park includes warehouses of the frizone (32 units) and warehouses that do not belong to it. The latter consist of 105 units with an area for rent of 118,965 m2.
Office premises include modern, ready-to-move administrative units and dedicated stations for workers. On the 1st floor there are the headquarters of the frison, where you can quickly renew or obtain a license, as well as issue a visa to employees.
Light industry modules
The project for the construction of ready-made modules is still in development, but it will start soon. The solution will provide high-quality, flexible and independent work. There will be a “Light Industry Module Park” that will be able to serve different firms and workshops.
Business Park “KIZAD” and “District Centre”
The main purpose of the business park is to support companies and employees. It will include offices, commercial exhibition halls, hotels and other related amenities.
Another interesting object “District Centre” will provide the Frison community with a mosque, a medical clinic, retail outlets, grocery stores and many others.
Opening of Khalifa Industrial Zone
The International Financial Center provides a wide range of services covering various types of activities. By opening a company here, you will be able to rent all kinds of office space and even a workplace.
What is important to know?
Features worth knowing about before opening:
- no taxes;
- the size of the authorized capital is 13698$/50 thousand dirhams;
- the duration of the license is 1 year. It is necessary to extend it before its expiration;
- audit reports must be submitted every year from the 2nd year.
What types of activities is the zone suitable for?
In the KIZAD zone, special attention is paid to such activities as:
Frison also offers services related to:
- freight forwarding support;
- travel agencies and others.
With the help of a license, you can perform 5 similar types of activities. The latter is added to the name of the organization. If they will provide services, it must be confirmed with a diploma of education.
What types of companies can I open?
You can open two types of companies in KIZAD:
- Limited liability Company (limited liability company). The minimum capital is 150 thousand dirhams. The owner can be either a natural person / legal entity, or a person who has both of these statuses.
- Branch Company (branch). It can be registered as a subsidiary in the Emirates or as a branch of a foreign company. A company with a valid registration and license outside the frison can apply for the formation of a branch.
Types of licenses
The following types of licenses are issued in the zone:
- Industrial License (industrial). Permits to import raw materials, produce, process, assemble, package and export products.
- Trading License OR General Trading License. (Trade license or General Trade License). Allows you to engage in trading activities together with the import, export, distribution, storage, warehousing of products specified in the license. A general trade license is issued when the number of products is more than 17 or the number of product groups is more than three.
- Service License. Gives the right to provide management, economic, consulting, marketing, logistics, restaurant services. It is also possible to offer catering services and transport goods.
Approximate costs of starting a company
Let’s consider what expenses will be required to organize a business.
By license type
The price of license packages depends on the number of resident visas in the Emirates and the conditions for issuing licenses. Each consists of a preliminary approval, registration, annual lease of a workstation and a company card.
License package for a year:
- 1st visa package – 11,000 dirhams;
- 2nd package – 13,000 dirhams;
- 3rd package – 15,000 dirhams;
- 4th package – 17,000 dirhams.
For each of the types of licenses, when purchasing a package for 1 year, a deposit for the safety of the station is applied – 1 thousand dirhams + additional VAT in the amount of 100 dirhams.
Only the 4th visa package is suitable for obtaining a General license, for an e-commerce or consulting license, two or more visa packages are needed.
License package for 2 years:
- 1st visa package – 22,000 dirhams;
- 2nd package – 26,000 dirhams;
- 3rd package – 30,000 dirhams;
- 4th package – 34,000 dirhams.
When buying a package for 2 years, you also need to pay a security deposit at the same price. The fee is 200 dirhams.
When buying a package for 3 years, the fee is levied in the amount of 300 dirhams:
- 1st visa package – 29700 dirhams;
- 2nd package – 35100 dirhams;
- 3rd package – 38250 dirhams;
- 4th package – 43350 dirhams.
There is also dual licensing – an option for those who already have a firm in KIZAD. It gives the right to a license for the parent part with full ownership of the company and to trade/provide services on it. There is no need for a separate office, a local service agent or a local sponsor.
- The trade name is 1215 dirhams.
- Commercial license – 900-3000 dirhams.
By type of office space
The Free zone offers many ready-made modern warehouses, the size and rental cost of which depend on the package you choose.
The maintenance fee for the common area costs 3 dirhams per square meter per year. The amount is adjusted annually. The annual escalation and the terms of the lease agreement will also be accepted. Additional collection is applied to strategic land allotments. The additional tax in the form of VAT is 5%.
Types of objects:
- Industrial sites of any area in the frison – 31 dirhams per m2 per year.
- Industrial plots of any size in a residential area – 26 dirhams per m2 per year.
- Logistics in frison – 33 per m2 per year.
- Logistics in the inner zone – 28 per m2 per year.
- The opening of a bookmark site in Zone B is 7.5 dirhams m2 per year.
The additional tax (VAT) for a resident visa is 5%. Services:
- Registration of the electronic channel – 2186.05 dirhams.
- Working visa outside the country – 2099.05 dirhams.
- A working visa within the country with a change of status is 4485.55 dirhams.
Follow-up with the company
To register a company, you need to visit an office in Dubai or Abu Dhabi only once. 60 days after the formation of the business, proof will be required that there is a minimum amount on the corporation’s account – 26 thousand dirhams in the form of equity capital.
The price for license renewal is equal to the amount of the registration fee. There is no need to conduct an audit on finances. It can be extended without the personal presence of the business owner.
Changes in the company
Only its shareholders or representatives by proxy can make any changes in the company.
Changes in the form are more common:
- change of managing director or director;
- transfer of shares;
- change of name or type of activity.
Liquidation of the company
It is possible to liquidate a company in the KIZAD free economic zone for 2625 dirhams. The procedure will take about a month. The Company appoints auditors who will act as liquidators. The latter must confirm that the company has no debts on the market. Each resident visa must be closed until the moment of liquidation. The same applies to closing a corporate bank account.