Abu Dhabi, UAE – 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) designed to accelerate AI growth in the region.

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 12,000 AED per year. Students and faculty of MBZUAI who wish to open an AI company within the Masdar City Free Zone will receive a 50 percent discount for the first two years of operations. The program 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.

“The Masdar City Free Zone is dedicated to innovation,” said Amier Al Awadhi, the acting director of the Masdar City Free Zone. “This new package will help us harness the potential of AI to transform the tech industry through automation, adaptation, and personalization. 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.”

“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,” said Sultan Al Hajji, the vice president of public affairs and alumni relations at MBZUAI. 

In addition to 100 percent foreign ownership, 100 percent income tax exemptions, comprehensive set-up support through the One-Stop Shop, and other perks, the Masdar City Free Zone offers an environment designed to help AI and other tech companies thrive. 

“Masdar City was created to foster tech and AI innovation,” said Steve Severance, Masdar City’s director of growth. “Companies can benefit from state-of-the-art, highly sustainable office, research, and educational facilities. They also have access to a thriving tech ecosystem and investors as well as top-tier talent. We’re already seeing AI support some ground-breaking work in Masdar City, and we’re excited to see the solutions our new companies will create.”

MBZUAI is only one of many entities within Masdar City’s growing AI cluster: Insilico Medicine, headquartered in the IRENA building, is using AI to create a new drug-discovery pipeline. Core42, a G42 company, in collaboration with MBZUAI and Cerebras Systems, recently released Jais, the world’s highest-quality Arabic large language model (LLM). Additionally, the Technology Innovation Institute, is home to Falcon180, an open-access LLM recognized recently by The Economist as a competitor to other leading generative AI tools.

The Masdar City Free Zone currently hosts over 1,000 businesses, from start-ups to multinationals, in dozens of sectors, including technology, health care, sustainability, mobility, clean energy, and space. Key tenants include Siemens Energy, Masdar, the International Renewable Energy Agency (IRENA), the Technological Innovation Institute, the UAE Space Agency, Insilico Medicine, and G42.

The Masdar City Free Zone is offering 50 percent off on registration, licensing, and leasing fees in honor of COP28. For more information on this and other business opportunities, visit the new masdarcity.ae. 

About Masdar City   
Masdar City is a pioneering sustainable urban community, a world-class business and technology hub, and a “green-print” for cities that want to be part of the solution to climate change. With one of the largest clusters of LEED Platinum buildings in the world, we are dedicated to creating a new kind of city, a new way of working and living, and a more sustainable future for everyone.

The Masdar City Free Zone is a diverse, innovative, and ambitious group of over 1,000 organizations that benefit from comprehensive business support as well as the city’s rich ecosystem. Tenants include the International Renewable Energy Agency (IRENA), the UAE Space Agency, Siemens Energy, G42 Healthcare, the Advanced Technology Research Council, several Fortune 500 companies, and the Mohamed bin Zayed University of Artificial Intelligence. The Masdar City Free Zone also includes The Catalyst, a clean-tech startup accelerator program powered by both Masdar City and BP.

Masdar City hosts a growing residential community and two generations of autonomous vehicles. It also manages the Masdar Green REIT, a real estate investment trust dedicated to investing in sustainable real estate assets. Currently the Masdar Green REIT is worth nearly AED 2.8 billion.
About Mohamed bin Zayed University of Artificial Intelligence (MBZUAI)
MBZUAI is a graduate, research university focused on artificial intelligence, computer science, and digital technologies across industrial sectors. The university aims to empower students, businesses, and governments to advance artificial intelligence as a global force for positive progress. MBZUAI offers various graduate programs designed to pursue advanced, specialized knowledge and skills in artificial intelligence, including computer science, computer vision, machine learning, natural language processing, and robotics. For more information, please visit www.mbzuai.ac.ae