How to Setup a Growing Logistics Business in Dubai
Dubai's logistics sector is growing, contributing over 14% to the UAE's GDP and positioning itself as a global trade hub. With the UAE's logistics market expected to reach USD 31.4 billion by the upcoming year, now is the perfect time to invest. However, a common challenge for entrepreneurs is guiding the legal and operational setup. This guide on how to start a logistics company in Dubai will walk you through the important steps, ensuring a smooth business launch.
Logistics Business in Dubai
A logistics business in the UAE helps companies transport goods and materials both locally and internationally. These businesses handle various tasks, including storage, transportation, and delivery, ensuring that products reach customers safely and on time. Logistics companies offer different services such as freight transportation by road, sea, or air, warehousing for storing goods before distribution, and courier or delivery services for quick customer shipments. To start a logistics business in the UAE, a logistics license is required. The cost of the license depends on whether the business setup in a Free Zone or on the Mainland.
Growth of the Logistics Industry in Dubai
Dubai's logistics sector is rapidly growing due to its strategic location between Asia, Europe, and Africa. The city ranks among the top 10 global logistics hubs, driven by continuous infrastructure investments.
Strategic Location and Business-Friendly Policies
Dubai's world-class ports, such as Jebel Ali Port, and major airports facilitate seamless trade and transportation. The government also offers business-friendly policies, tax benefits, and free zone options to attract investors.
Advanced Digitalization and Smart Logistics
Dubai is adopting AI-driven logistics, blockchain technology, and automated warehousing to improve efficiency, reduce costs, and streamline operations.
Expansion of E-Commerce and Last-Mile Delivery
The rise of e-commerce giants and online shopping trends has significantly increased the demand for logistics, warehousing, and last-mile delivery solutions.
Investments in Infrastructure
The UAE government continues to invest in roads, ports, airports, and free zones, improving Dubai’s position as a global logistics hub.
How to Start a Logistics Business in UAE Successfully?
Starting a logistics business in Dubai requires careful planning and compliance with local regulations. By following these steps, you will gain clarity on how to start logistics business in Dubai.
Choose Your Logistics Business Activity
Decide the type of logistics services you want to offer:
- Freight Forwarding (air, sea, and land transportation)
- Warehousing and Storage
- Courier and Delivery Services
- Customs Clearance
- Supply Chain Management
Select a Business Jurisdiction
You can set up your logistics business in UAE in either a free zone or the mainland:
- Free Zone: 100% foreign ownership, tax benefits, but restricted business within the UAE.
- Mainland: Approval from DED and RTA is required. Businesses can operate UAE-wide, partner for freight, and bid for government contracts
To register your company, you need to:
- Choose a unique trade name.
- Submit a business plan.
- Obtain approval from the Department of Economic Development (DED) or free zone authority.
Obtain Necessary Licenses
A Dubai logistics license is mandatory for operations. The main types include:
- Freight Forwarding License
- Warehousing License
- Transport and Courier License
- Customs Clearance License
Secure Business Premises and Infrastructure
Having the right infrastructure is important
- Office space: Required for legal registration.
- Warehouse: Essential for storage and inventory management.
- Fleet: Vehicles for transportation and delivery services.
Open a Business Bank Account
To manage finances efficiently, open a Bank account in UAE bank. Required documents include:
- Trade license
- Memorandum of Association (MOA)
- Passport and visa copies of shareholders
Dhanguard will assist you in opening your business bank account easily.
To set up your business in the UAE, READ HERE to get more information about business setup. Dhanguard will guide you every step of the way. Start Your Logistics Business in Dubai with Dhanguard At Dhanguard, we provide expert assistance in every step of how to start a logistics company in Dubai. setting up your logistics business. From business registration and trade license approvals to choosing the right jurisdiction.
Our services also include setting up bank accounts, securing office space, obtaining visas, and workforce planning. With Dhanguard's end-to-end support and how to start a logistics company in Dubai, starting a logistics business in the UAE has never been easier.
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