Is This the Future Hub for UAE Startups?

When people talk about free zones in the UAE, the conversation usually revolves around incentives, infrastructure, and growth. But every now and then, a free zone stands out not just for numbers, but for how it’s shaping the business environment around it. Masdar City Free Zone is one such example.

Recently, Masdar City Free Zone was recognised by Business Tabloid Publications with three major awards, reflecting the progress it has made over the past year. The honours were received by Dr. Mohamed Al Breiki, Executive Director of Masdar City, on behalf of the growing business community operating within the free zone.

The first recognition named Masdar City Free Zone as the Fastest Growing Free Zone in the UAE. The award looks at operational development and workforce expansion, and the figures behind it show steady momentum rather than overnight success. In 2025 alone, around 1,000 new companies joined the free zone. Overall, the number of attracted companies grew by 36 percent, with a year-on-year increase of 172 percent.

Today, more than 2,000 businesses are registered at Masdar City Free Zone, and over half of them are startups. Alongside company growth, job creation has followed a similar path. The free zone recorded a 33 percent expansion in employment opportunities, marking a 71 percent year-on-year rise.

Another award recognised Masdar City Free Zone as the Best Free Zone for SMEs. For small and medium businesses, location is not just about address — it’s about flexibility, cost, and access to the right support.

Masdar City Free Zone has built its SME offering around these practical needs. It provides tailored company formation packages, flexible lease options, and shared facilities such as meeting rooms and event spaces. One of the notable additions is its flexi R&D lab, which allows companies of different sizes to carry out research and testing without having to invest heavily in their own infrastructure.

Support for startups also extends beyond space and licensing. Through its venture arm, The Catalyst, businesses can access incubation and early-stage funding opportunities, helping founders move from concept to market with fewer barriers.

The third award, Best Free Zone for Innovation and Technology, highlights the role Masdar City Free Zone plays in attracting research-driven and technology-focused companies.

Tenants operate across six core clusters: Artificial Intelligence, Agritech, Life Sciences, Energy, Smart Mobility, and Space Technology. The ecosystem includes institutions such as IRENA, the UAE Space Agency, and the Mohamed bin Zayed University of Artificial Intelligence, creating an environment where research, policy, and commercial activity overlap in practical ways.

Speaking about the growth, Dr. Mohamed Al Breiki noted that Masdar City Free Zone’s performance reflects its role as an economic enabler rather than just a licensing hub. The focus, he said, is on helping businesses scale within a system that supports innovation while contributing to Abu Dhabi’s wider economic diversification goals.

This approach aligns with the UAE’s broader strategy. The country is positioning startups and entrepreneurs as key drivers of long-term economic development, with a national goal of reaching more than two million registered companies by 2031 under the Falcon Economy vision. Free zones are expected to do more than process registrations — they are meant to encourage collaboration, technology transfer, and sustainable growth.

Masdar City’s model fits into that shift. With a 99 percent occupancy rate and businesses representing over 90 countries, the free zone hosts a mix ranging from Fortune 500 firms to early-stage ventures. Companies and institutions such as Siemens Energy, G42, the Advanced Technology Research Council, and The Catalyst form part of a community where partnerships are often built around real-world applications and market access.

Over the past year, Masdar City has also seen growing international interest. Hundreds of delegations have visited to understand how the free zone operates and to explore partnership opportunities. For many, the appeal is not only commercial, but also linked to sustainability and Abu Dhabi’s strategic location as a gateway to regional and global markets.

As Masdar City Free Zone continues to expand, its focus remains on attracting businesses that balance commercial goals with long-term impact. For SMEs, startups, and technology-driven firms, the free zone is positioning itself as a practical base — one that offers infrastructure, regulatory support, and a connected ecosystem to support steady growth rather than short-term wins.