Imagine a city where packages move faster than ever, where businesses can ship goods across continents in hours, and where logistics is not just an industry but the backbone of global trade. That city is Dubai. With its world-class ports, cutting-edge airports, and strategically located free zones, Dubai has transformed into a logistics powerhouse, connecting over 3 billion consumers across Asia, Europe, and Africa.
In fact, Dubai’s logistics sector is growing fast, contributing around $30 billion to the UAE’s GDP and handling over 15.5 million TEUs (twenty-foot equivalent units) of cargo at Jebel Ali Port annually. Dubai International Airport (DXB) also processes more than 2.5 million tonnes of freight every year, making it one of the busiest cargo hubs in the world.
The logistics industry plays a major role in keeping Dubai’s economy strong. From e-commerce and retail to manufacturing and construction, almost every industry depends on smooth and efficient logistics. The UAE government continues to invest heavily in infrastructure and technology to improve supply chain operations.
Starting a logistics business in Dubai is a great opportunity, thanks to its business-friendly environment, 100% foreign ownership options, and tax advantages. Therefore, we’ll take you through everything you need to know to successfully launch your logistics business in Dubai.
What is a logistics license in Dubai?
A logistics license in Dubai is a legal permit that allows businesses to operate in the logistics and supply chain sector, including freight forwarding, transportation, warehousing, and distribution services. This license is essential for companies involved in the movement, storage, and management of goods within Dubai and internationally.
The Department of Economic Development (DED) issues logistics licenses for mainland businesses in Dubai. However, if you want to set up in a free zone, the respective Free Zone Authority will issue the license.
Logistics Industry in the UAE
The logistics industry in the UAE is a cornerstone of the nation’s economy, leveraging its strategic location to serve as a global trade nexus. In 2024, the UAE logistics market generated a revenue of USD 169.7 billion and is projected to reach USD 241.6 billion by 2030, growing at a Compound Annual Growth Rate (CAGR) of 6.1% from 2025 to 2030.
Transportation services emerged as the largest revenue-generating segment in 2024; while warehousing and distribution services are anticipated to experience the fastest growth during the forecast period.
The UAE’s strategic investments in infrastructure have significantly bolstered its logistics capabilities. For instance, in 2023, Dubai International Airport (DXB) managed 2,112,336 tonnes of freight, reflecting a robust air cargo sector.
Despite challenges, including geopolitical tensions affecting maritime routes, the UAE’s logistics sector remains resilient. Companies like DP World have experienced fluctuations due to increased financing costs and regional instabilities, yet the overall industry outlook remains positive.
Types of Logistics Businesses in Dubai
Here are the key types of logistics businesses you can start in Dubai:
1. Freight Forwarding
These companies specialise in arranging the shipment of goods on behalf of shippers. Their services include organising cargo transportation, handling customs clearance, managing documentation, and ensuring timely delivery by coordinating with multiple carriers.
2. Warehousing and Storage
Businesses that provide storage facilities for goods. This category includes traditional warehousing, cold storage for perishables, and specialized storage solutions like bonded warehouses for imported goods pending customs clearance.
3. Transportation and Distribution
Companies are focusing on the physical movement of goods, including road, air, and sea transport. These firms may operate fleets of trucks, vans, or even specialised vehicles, managing both local distribution and international shipments.
4. Courier and Express Delivery Services
Firms offering rapid and reliable delivery for smaller packages. This segment caters primarily to e-commerce and retail sectors, focusing on last-mile delivery, time-sensitive shipments, and same-day services.
5. Supply Chain Management and 3PL Services
Third-party logistics (3PL) providers manage a client’s entire supply chain operations. This includes everything from procurement and inventory management to order fulfilment and reverse logistics, often leveraging technology for real-time tracking and analytics.
6. E-commerce Fulfilment
With the boom in online shopping, specialized fulfilment centres offer integrated services including inventory management, order processing, packaging, and shipping directly to customers.
How to Start a Logistics Business in Dubai?
If you’re looking to start a logistics business in Dubai, here’s a detailed step-by-step process:
1. Define Your Logistics Business Activity
The logistics industry in Dubai includes several specialised sectors. Before registering your business, determine the type of logistics services you want to offer:
- Freight Forwarding
- Warehousing & Storage
- Transportation & Distribution
- Courier & Last-Mile Delivery
- Third-Party Logistics (3PL) & Supply Chain Management
Choosing the right business activity is crucial as it determines the required licenses, permits, and approvals.
2. Choose Mainland or Free Zone Setup
Dubai allows you to set up a logistics business in either the mainland or a free zone. Each option has its pros and cons:
Mainland Logistics Business
- Approval from the Department of Economic Development (DED) and the Roads and Transport Authority (RTA) is required, particularly if the business involves transportation.
- Can operate across the UAE without restrictions.
- Businesses engaged in freight transportation are required to partner with a local service agent.
- The business is eligible to bid for government contracts and can serve both businesses and individuals.
Free Zone Logistics Business
- Dubai’s free zones are ideal for international logistics operations due to their strategic location and business-friendly policies.
- The free zone allows 100% foreign ownership of businesses.
- Businesses benefit from zero corporate or personal income tax.
- Businesses can only operate within the free zone unless they partner with a mainland entity to conduct activities outside the zone.
Popular Free Zones for Logistics Business in Dubai:
- International Free Zone Authority (IFZA)
- Jebel Ali Free Zone (JAFZA)
- Dubai South Free Zone
- Dubai Airport Free Zone (DAFZA)
- Dubai Logistics City (DLC)
3. Register the Company Name
Choose a unique company name that follows UAE naming guidelines. Apply for initial approval from the relevant authority (DED for mainland or free zone authorities for free zone setup).
4. Obtain the Logistic License in Dubai
- The Department of Economic Development (DED) or the respective Free Zone Authority issues a logistics license in Dubai.
Additional approvals may be required from:
- Roads and Transport Authority (RTA): Required for businesses offering transportation services.
- Dubai Civil Aviation Authority: Required for businesses dealing with air cargo.
- Dubai Maritime City Authority: Required for businesses operating in sea freight.
5. Secure Office and Warehouse Space
Mainland businesses must rent a physical office space as per DED regulations. Free zone businesses can operate from a virtual office in some cases, but warehouse facilities may be required depending on the activity.
6. Open a Corporate Bank Account
Select a UAE bank that supports logistics businesses for seamless transactions. Provide required documents, including a business license, passport copies, and proof of business address.
7. Hire Staff and Register with Labour Authorities
Logistics businesses require skilled staff, including freight managers, drivers, warehouse operators, and customs clearance specialists. Provide employees with work visas and Emirates ID. If operating heavy vehicles, drivers need an RTA Commercial Driving License.
8. Acquire Vehicles and Equipment
For transport businesses, purchase delivery vans, trucks, or specialised freight vehicles. Register commercial vehicles with the RTA and obtain the necessary permits.
Start Your Logistics Company in the UAE Today!
Documents Required to Start a Logistics Business in Dubai
To start a logistics company in Dubai, you’ll need to submit the following documents:
- Passport copies of all shareholders
- Copies of the visit or residence visas of the shareholders are required.
- 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.
What is the Logistics Company License Cost in Dubai?
The license cost for a logistics company in Dubai varies based on factors like business location, license type, and operational requirements. Dubai mainland logistic license costs typically start from AED 18,000, but additional expenses such as office rent, visa fees, and government approvals can increase the total investment.
If you choose a free zone, the cost depends on the selected free zone authority, with packages covering business registration, office space, and other facilities.
On top of the license fees, logistics businesses should also consider expenses like warehouse rental, vehicle permits, insurance, custom approvals, and bank guarantee requirements for freight forwarding services.
Partner with Shuraa Business Setup to understand costs, optimise your investment, and launch your logistics company in the UAE seamlessly.
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Benefits of a Logistics Business Setup in Dubai
Setting up your logistics company in Dubai comes with several advantages, including:
1. Tax Advantages
Dubai offers a tax-friendly environment with 0% corporate tax for qualifying free zone entities, 0% customs duties on re-exported goods, and no personal income tax.
2. Diverse Market & High Demand
Dubai’s growing eCommerce, retail, and import-export sectors drive high demand for logistics services, providing abundant business opportunities.
3. 24/7 Cargo Operations
Unlike many global logistics hubs, Dubai’s ports, airports, and logistics facilities operate round the clock. This ensures faster processing and delivery times for cargo movement.
4. Low Import & Re-Export Costs
Dubai has minimal import duties (often 5% or less) and zero re-export duties, making it highly cost-effective for logistics companies managing international shipments.
5. Expanding E-Commerce Sector
With e-commerce booming in the Middle East, logistics businesses in Dubai can capitalise on increased demand for warehousing, last-mile delivery, and fulfilment services.
How Shuraa Business Setup Can Help
In today’s fast-paced world, businesses rely on efficient logistics to keep things moving. Whether it’s transporting goods, managing supply chains, or ensuring timely deliveries, the logistics industry is the backbone of global trade, and Dubai is at the heart of it all.
However, starting a logistics business in Dubai isn’t just about securing a license; it’s about making the right choices from the start. From selecting the best jurisdiction (mainland or free zone) to understanding compliance rules and operational costs, every decision matters. That’s where Shuraa Business Setup comes in. Our team of experts will guide you through business registration, licensing, visa processing, and PRO services, ensuring a smooth and cost-effective setup.
Let us handle the complexities while you focus on building a successful logistics business. Get in touch with us today, and let’s get your business moving forward.
Frequently Asked Questions
1. How can I set up a logistics company in Dubai?
To start a logistics business in Dubai:
1. Choose a location between the mainland or the free zone.
2. Apply for a logistics license through DED or a Free Zone Authority.
3. Secure office/warehouse space.
4. Register with customs (essential for import/export activities).
5. Obtain approvals from Dubai Customs, RTA, and other authorities.
6. Set up a bank account, insurance, visas, and permits.
7. Follow UAE trade, tax, and safety regulations.
2. Which free trade zone is best for a logistics business in Dubai?
Some of the top free zones for logistics businesses include Jebel Ali Free Zone (JAFZA), Dubai South Free Zone, Dubai Airport Free Zone (DAFZA), and IFZA. Each offers unique benefits such as tax exemptions, streamlined company setup processes, and access to ports and airports.
3. What should I consider before setting up a logistics business?
Key factors to consider include business structure (mainland or free zone), location, license type, warehouse and transportation needs, customs regulations, and operational costs.
4. Do I need special approvals for a logistics business in Dubai?
Yes, logistics businesses handling freight forwarding, warehousing, and customs clearance require approvals from authorities like the Dubai Customs, Roads and Transport Authority (RTA), and Free Zone Authorities (if applicable).
5. How much does a logistics company license cost in Dubai?
In Dubai Mainland, a logistics license starts from AED 18,000, but additional costs for office space, visas, customs approvals, and insurance may apply.
6. Why Start a Logistics Business in Dubai or UAE?
Strategic Location: Dubai is a gateway between East and West, ideal for global trade.
World-Class Infrastructure: State-of-the-art ports, airports, and free zones.
Tax Benefits: No corporate or personal income tax in free zones.
Growing Demand: Increasing e-commerce and trade activities boost logistics needs.
*Note: The information in this post is for general guidance only and may change due to updates in government policies or regulations.
