How Chinese Investment in KEZAD is Shaping Abu Dhabi's Role as a Global Business Hub

Chinese investment in the Khalifa Economic Zone Abu Dhabi (KEZAD) has become a defining feature of the Belt and Road Initiative (BRI) in the Middle East.  

Anchored by the China-UAE Industrial Capacity Cooperation Demonstration Zone (ICCDZ), this partnership is more than just capital inflows; it’s about reshaping Abu Dhabi into a hub of advanced manufacturing, sustainable industries, and global connectivity. 

For companies exploring business setup in Abu Dhabi, the momentum around KEZAD highlights why this zone is becoming a focal point of international trade and investment. 

- The ICCDZ: A Catalyst for Bilateral Growth 

The ICCDZ is a dedicated industrial platform within KEZAD, covering a planned area of 12.2 square kilometers. Its start-up area spans 2.2 square kilometers in KEZAD’s Area A, with an additional 10 square kilometers in Area B. 

Positioned adjacent to Khalifa Port, one of the region’s most advanced deep-water ports, the ICCDZ offers unparalleled access to global shipping routes. Nearly 40 Chinese firms have committed to establishing operations in the ICCDZ, contributing a total investment of US$10 billion. 

This includes industries such as equipment manufacturing, fine chemical engineering, renewable energy, and metal processing. These sectors align with Abu Dhabi’s broader economic diversification strategy while giving Chinese enterprises a launchpad to access international markets. 

- Economic Advantages of KEZAD 

For investors considering business setup in the UAE, KEZAD offers compelling advantages, the major ones being: 

• Logistics: Direct connectivity to global markets through Khalifa Port ensures efficient logistics. 

• Cost Benefits: Companies benefit from zero taxes on value-added, income, and consumption, along with competitive land lease rates. 

• Ease of Operations: KEZAD’s services are modeled on Jiangsu’s “One Stop Shop” system, ensuring fast-track licensing and streamlined administration. 

• Eco-Friendly Policies: Enterprises must meet environmental standards, creating a sustainable industrial ecosystem. 

These benefits lower barriers to entry while supporting long-term operational growth, making KEZAD one of the most attractive destinations for UAE freezone setup. 

- Industrial Growth and Showcase Events 

Since its establishment, the ICCDZ has attracted more than 30 projects, with the first wave of companies already operational. Infrastructure such as administrative centers, road networks, and custom-built workshops provide a ready environment for rapid scale-up. 

A landmark moment came in November 2024 with the Chinese Industrial Products Exhibition at JOCIC Park inside the ICCDZ. Nearly 90 Chinese and Emirati companies showcased products across advanced manufacturing, digital technologies, and environmental solutions. 

- Broader Impact on Abu Dhabi’s Economy 

Chinese investment in KEZAD goes beyond manufacturing. It creates jobs, stimulates infrastructure development, and positions Abu Dhabi as a global hub for trade and innovation. 

According to the Abu Dhabi Investment Office (ADIO), these investments are strengthening industrial capabilities while also boosting real estate and hospitality sectors. Chinese demand has supported growth in luxury property markets, tied to a rising flow of Chinese tourists. 

Bilateral trade figures also confirm the strength of this partnership. Trade reached US$95 billion in 2023, with over US$50 billion recorded in the first half of 2024 alone. These numbers illustrate the growing interdependence between China and the UAE. 

- Strategic Partnership Between China and the UAE 

Since 2018, China and the UAE have enjoyed a comprehensive strategic partnership. This extends beyond trade to cooperation in energy, finance, education, and technology. 

• Energy: Chinese firms are involved in major renewable projects, including solar, wind, and hydrogen. A US$6 billion partnership between CATL and Masdar is delivering the world’s largest solar-plus-storage system in Abu Dhabi. 

• Finance: A five-year bilateral currency swap worth 35 billion yuan was renewed in November 2023, facilitating smoother trade flows. 

• Education and Culture: The UAE has introduced Chinese language programs in over 170 public schools and expanded cultural exchanges to deepen bilateral ties. 

• Innovation: Shared modernization goals under the UAE’s Centennial 2071 plan and Digital Economy Strategy align with China’s strengths in smart manufacturing and digital transformation. 

These layers of collaboration reinforce Abu Dhabi’s position as a partner of choice for global investors, making business setup in Abu Dhabi increasingly appealing for companies across sectors. 

- KEZAD and the Future of Business Setup in the UAE 

KEZAD exemplifies the UAE freezone model at its best: zero taxes, world-class infrastructure, sustainability, and global connectivity. For Chinese companies, the ICCDZ provides a gateway into regional and international markets. 

For Abu Dhabi, it accelerates the emirate’s diversification away from hydrocarbons and strengthens its credentials as a financial and industrial hub. 

 With Chinese investment driving the next phase of industrial expansion, KEZAD is positioned to become a model of international cooperation under the BRI. 

For businesses exploring UAE freezone setup, KEZAD offers a unique combination of strategic location, policy support, and global connectivity. As China and the UAE deepen their partnership, KEZAD is set to become a cornerstone of the Gulf’s industrial and economic future.