Six UAE free zones featured in the global top 10 according to fDi Intelligence, with Masdar City Free Zone claiming tenth position in the 2024/25 assessment of economic potential, infrastructure, sustainability and innovation. Jebel Ali Free Zone ranked first overall while Hamriyah Free Zone Authority and Khalifa Economic Zones Abu Dhabi placed second and third, the report published on October 10 2024 showed. Masdar City Free Zone also gained recognition as highly commended in the innovation category for programmes supporting life sciences, cleantech and smart mobility companies.
Masdar City Free Zone’s global top 10 ranking boosts investor confidence, the developer stated in response to the fDi Intelligence findings. The free zone has partnered with Mohamed bin Zayed University of Artificial Intelligence to incubate technology spin-offs and accelerate commercialisation in advanced sectors. Recent tenants include drug discovery company Prepaire Labs and Attentive Science, a contract research organisation that utilises the zone’s dedicated business setup assistance.
A 31.8-megawatt data centre operated by Khazna within the free zone addresses digital infrastructure requirements for tenant firms, according to details submitted to the fDi survey. Climate technology initiatives gained momentum after the UAE hosted COP28 in 2023, reinforcing the zone’s founding focus on net-zero urban solutions established nearly 15 years earlier. These attributes helped distinguish Masdar City Free Zone in a competitive field that included Dubai Silicon Oasis as the runner-up for innovation.
Software, IT services and business activities comprised nearly half of foreign direct investment projects in free zones globally during 2023, fDi Markets data indicate. Masdar City Free Zone has capitalised on this trend by aligning its priorities with Abu Dhabi’s non-oil economic expansion goals. Its green building standards and sustainability credentials have drawn anchor tenants that include the International Renewable Energy Agency, Siemens Energy and G42.
More than 2,500 companies from over 90 countries had registered in the free zone by 2025, a Masdar City release reported, with new business registrations rising 36 percent that year. Over 1,000 of these entities are start-ups while more than half the total are small and medium-sized enterprises that access licensing packages from AED 7,000. The zone achieved a 99 percent occupancy rate and recorded a 33 percent expansion in employment opportunities during the same period.
Strategic location five minutes from Zayed International Airport has enhanced connectivity for international investors, according to Masdar City assessments. Joint ventures with Aldar and Mubadala have added commercial real estate capacity valued at AED 4.7 billion to accommodate continued demand. The resulting ecosystem supports cross-sector collaboration on energy transition, artificial intelligence and sustainable development projects.
