Other BriefingsAbu Dhabi Provides Tax Incentives For AI Investors and Start Ups
100% Foreign Ownership and Income Tax breaks permitted in this crucial hi-tech sector
Abu Dhabi is looking to attract AI start-ups with a new licence package and special offers. The Masdar City Free Zone has introduced a new licensing package for start-ups and businesses focused on artificial intelligence (AI). The package is part of a collaboration between Masdar City and Mohamed bin Zayed University of Artificial Intelligence (MBZUAI), and is designed to accelerate the region’s AI growth.
AI business incentives in Abu Dhabi
AI-focused businesses of any size will be able to begin operations in Masdar City with a tailored package that includes licensing and office space starting at AED12,000 (US$3,268) per year. Students and faculty of MBZUAI who wish to open an AI company within the Masdar City Free Zone will receive a 50% discount against corporate income tax for the first two years of operations.
The programme is an outcome of a Memorandum of Understanding signed at Abu Dhabi Sustainability Week between the Masdar City-based university, Masdar City, and The Catalyst, Masdar City’s venture arm, which invests in clean tech start-ups.
Amier Al Awadhi, a Director of the Masdar City Free Zone, said: “The Masdar City Free Zone is dedicated to innovation. This new package will help us harness the potential of AI to transform the tech industry through automation, adaptation, and personalisation.
“We’re working with Mohamed bin Zayed University of Artificial Intelligence to grow and scale even more leading-edge businesses and projects that will further position the UAE as a global technology hub.”
Sultan Al Hajji, Vice President of Public Affairs and Alumni Relations at MBZUAI, said: “In line with MBZUAI’s visionary mission to support Abu Dhabi’s efforts in becoming a hub for AI start-ups and towards a knowledge-based economy, our commitment is to nurture a talent pipeline rich in advanced AI expertise.
“We aim to cultivate a vibrant ecosystem where cutting-edge research fuels start-ups with the potential to transform industries and shape a brighter future for society”.
In addition to permitting 100% foreign ownership, and 100% income tax exemptions, the Masdar City Free Zone offers an environment designed to help AI and other tech companies thrive.
The Masdar City Free Zone currently hosts more than 1,000 businesses, from start-ups to multinationals, in dozens of sectors, including Technology, Healthcare, Sustainability, Mobility, Clean Energy and Space technologies.
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