Starting a logistics business in Dubai is a lucrative opportunity, as Dubai serves as a major hub connecting Asia, Europe, and the West. The city’s strategic location, world-class infrastructure, and strong trade networks make the logistics sector one of the most profitable industries in the UAE. Entrepreneurs looking to enter the logistics industry can leverage these advantages to build successful operations.
Key factors contributing to the growth of the logistics industry in Dubai include:
- Diversified Industry: The UAE logistics sector caters to a wide range of industries, allowing businesses to tap into various market segments.
- Streamlined Trade Regulations: The harmonization of regional trade and export laws simplifies processes and reduces barriers for businesses.
- Modernized Services: Continuous expansion and modernization of logistics services keep the UAE at the forefront of global trade.
With its well-established shipping routes and seamless operations, starting a logistics business in Dubai provides a strong foundation for growth and success in the global market.
What is a logistics license in Dubai?
A logistics license in Dubai allows companies the legal authority to operate within the logistics and supply chain sectors. This includes key activities such as warehousing, freight forwarding, transportation, and distribution of goods. It is a crucial requirement for businesses involved in the handling, storage, and movement of products both locally and internationally.
By obtaining a logistics license, companies ensure compliance with Dubai’s regulatory standards and legal framework. This certification enables them to offer logistics services while meeting the necessary operational guidelines. Additionally, securing a logistics license opens significant opportunities, allowing businesses to capitalize on Dubai’s strategic position as a global trade hub.
The Logistics Industry in the UAE
The UAE logistics market is expected to grow by USD 11.31 billion with a compound annual growth rate (CAGR) of 7.44% between 2023 and 2028.
This growth is driven by several key factors, including the rapid expansion of the e-commerce industry, the increasing use of multimodal transport and the growing trend of outsourcing logistics services to specialized providers.
These elements are making the logistics industry a critical and fast-evolving sector in the UAE, offering significant opportunities for businesses and investors alike.
Benefits of a Logistics Business Setup in Dubai
Dubai’s strategic location and advanced infrastructure make it an ideal hub for logistics companies. Key benefits include:
1. World-Class Infrastructure
State-of-the-art ports and airports ensure efficient global connectivity, reducing transportation time and costs.
2. Lenient Taxation Policies
No income tax allows higher profit retention and reinvestment, giving businesses a competitive edge in the market.
3. No Trading Location Restrictions
Freedom to trade globally without location-based limitations makes Dubai a flexible and advantageous base for international operations.
4. No Minimum Capital Requirement
Low entry barriers for investors allow businesses of all sizes to start operations and scale up as needed.
5. Government Support
Streamlined licensing and customs processes, with substantial government backing, make establishing and expanding logistics operations easy.
6. Low Import Duty
Typically, 5%, with possible exemptions, significantly reduces costs, especially for businesses involved in import-export activities.
7. Diverse Business Activities
Combining multiple logistics services under one license enhances efficiency and maximises business potential.
These factors collectively make Dubai a prime location for a successful logistics business setup.
Setting up Your Logistics Business in UAE Mainland
Entrepreneurs looking to open a company in the UAE also enjoy several benefits depending on the region where they set up their business. Logistics business setup in UAE mainland enjoy numerous benefits the country has to offer.
Dubai mainland offers opportunities for all types of markets, thus leading to high profitability and easy distribution across the UAE.
Setting up Your Logistics Business in UAE Free Zones
Free zones in the UAE are the regions which offer maximum profits for logistics companies. This is because there are specific free zones assigned to conduct & promote logistics businesses only.
Additionally, some of the most popular free zones for logistics businesses which offer maximum profits for logistics companies are:
- Dubai Logistics City or Dubai World Central
- Jebel Ali Free Zone
- Dubai South Free Zone
- Dubai Airport Free Zone
How to Start a Logistics Company in Dubai?
If you’re looking to start a logistics business in Dubai, follow these essential steps. Partnering with an experienced business setup consultant like Shuraa can streamline the process and eliminate hassles:
Step 1: Choose Your Business Activity
Identify the logistics services you plan to offer, such as freight forwarding, warehousing, or transportation. Ensure your activities align with those approved by the Department of Economic Development (DED).
Step 2: Select a Company Name
Choose a business name that complies with UAE naming regulations. Avoid using offensive words, well-known brand names, or abbreviations. Ensure that the name is unique and available for registration.
Step 3: Apply for a Trade License
Submit your trade license application based on your business location. For mainland companies, licenses are issued by the DED, while businesses in free zones must apply through the relevant free zone authority.
Step 4: Obtain Visas
Once your trade license is issued, apply for a UAE residency visa, which includes a medical check-up and biometric scan. Additionally, your license allows you to sponsor visas for family members and employees, depending on your business activity and size.
By following these steps, you can successfully start a logistics company in Dubai and take advantage of the city’s strategic position in global trade.
Documents Required for Starting a Logistics Business in Dubai
To establish a logistics business in the UAE, you’ll need to submit the following documents:
- Passport copies of all shareholders
- Visa copies of shareholders (visit or residence visa)
- Passport copy and CV of the company’s manager
- Proof of trade name reservation
- Initial activity approval from the relevant authority
- Legal agreement for a physical office or warehouse address in the UAE
- Proof of payment for the trade license
Ensuring these documents are in order will help streamline the application process and get your logistics business up and running in no time.
License Cost for Logistics Company in Dubai
The cost of setting up a logistics company in Dubai ranges between AED 18,000* and AED 50,000*, depending on several factors. These include the type of license you require, the number of vehicles for operations, driver training costs, and any additional approvals or security features needed. Marketing expenses and other logistical considerations can also impact on the total cost.
Because of these variables, it’s difficult to give an exact estimate without understanding the specifics of your business. Consulting with experts like Shuraa Business Setup can provide clarity. They will help tailor the process to your needs, ensuring that you stay within your budget while avoiding unnecessary expenses.
Types of Logistics Business Activities in Dubai, UAE
Once you open a logistics company in the UAE, you can manage operations like goods storage, supply chain management, and the transfer of goods between origin and destination. Several business activities fall under the logistics business in Dubai, including:
- Freight brokerage
- Shipping line agents
- Customs brokerage
- Warehouse management
- Cargo transportation (via air, sea & land)
- Third party logistics
Approvals for a Logistics License in Dubai
To start a logistics business in Dubai, you need approvals from several government authorities:
- Trade License: Obtain this mandatory business license from the Department of Economic Development (DED).
- Warehouse License: Needed for warehousing activities.
- Transport License: For businesses involved in transportation, obtain from the Roads and Transport Authority (RTA).
- Customs Clearance License: Required for freight forwarding, issued by Dubai Customs Authority.
These approvals are essential to secure your logistics license in Dubai.
Start a Logistics Business in Dubai with Shuraa!
Starting a logistics business in Dubai is a smart and profitable decision, thanks to the city’s strategic location that connects major global markets across Asia, Europe, and the West. With state-of-the-art infrastructure, business-friendly government policies, and a diverse range of activities in the logistics sector, Dubai serves as a key hub for global trade.
Obtaining the required approvals, such as a logistics license in Dubai, is essential for operating in this thriving industry. With the right setup, your logistics company can capitalize on Dubai’s growing market and extensive business opportunities.
Shuraa Business Setup provides expert guidance for a smooth and hassle-free setup, handling everything from licensing to documentation and approvals. Contact us via WhatsApp at +971507775554, email at [email protected], or call us at +971501304032 or +971501249534 for personalized assistance.
Frequently Asked Questions
Q1. What is a Logistics Business?
A logistics business handles the efficient movement of goods and services. This includes key operations such as transportation, warehousing, and overall supply chain management to ensure timely delivery from suppliers to consumers.
Q2. Is Logistics Profitable in Dubai?
Yes, the logistics industry is highly profitable in Dubai. Its strategic location, connecting global markets, combined with advanced infrastructure and business-friendly free zones, creates a thriving environment for logistics companies.
Q3. Is Logistics in Demand in the UAE?
Absolutely, logistics is in high demand across the UAE. The growth of e-commerce, increasing international trade, and continuous infrastructure development contribute to the rising need for logistics services.
