Dubai has rapidly transformed into a global logistics powerhouse, connecting Asia, Europe, and Africa through world-class infrastructure, free trade zones, and investor-friendly regulations. The emirate’s modern ports, advanced road network, and innovative air cargo facilities make it one of the best destinations for entrepreneurs planning to start a logistics company in Dubai.
This comprehensive guide explains everything — from how to obtain a logistics license in Dubai to the cost, benefits, and step-by-step setup process — for anyone looking to tap into the UAE’s booming supply chain and logistics sector.
What is a Logistics Company
A logistics company handles the storage, movement, and transportation of goods from manufacturers to end users. It involves various operations, including freight forwarding, warehousing, inventory management, and customs clearance.
In Dubai, logistics companies play a critical role in connecting global markets through sea, air, and land routes. The logistics sector supports industries like retail, e-commerce, construction, and oil & gas by ensuring the timely and efficient delivery of goods across borders.
Key Functions of a Logistics Business
- Freight Forwarding: Managing international cargo movement through air or sea freight.
- Warehousing: Providing safe storage for goods with advanced inventory management systems.
- Transportation: Handling domestic and regional distribution through trucks or vans.
- Customs Brokerage: Managing import/export documentation and customs procedures.
- Supply Chain Management: Streamlining logistics operations for cost-efficiency and speed.
Types of Logistics Services Offered in Dubai
Dubai’s logistics companies often specialise in one or more of the following services:
- Air Freight Services – Fast and efficient cargo transport through airports like Dubai International (DXB) and Al Maktoum International (DWC).
- Sea Freight Services – Bulk shipment operations through Jebel Ali Port, one of the world’s largest ports.
- Land Transport – Trucking and delivery services within the UAE and across the GCC.
- E-commerce Logistics – Handling fulfilment and last-mile delivery for online stores.
- Cold Chain Logistics – Temperature-controlled storage and transportation for food, pharmaceuticals, and perishable goods.
By understanding these segments, entrepreneurs can decide whether to specialise or offer integrated logistics solutions.
Why Start a Logistics Business in Dubai
Dubai’s economy is built on trade and connectivity. The emirate’s strategic geographic location between Asia, Europe, and Africa makes it a global logistics hub. Starting a logistics business in Dubai opens the door to a thriving market supported by advanced infrastructure and business-friendly policies.
Strategic Location and Infrastructure
Dubai sits at the crossroads of major global trade routes. The presence of Jebel Ali Port, Dubai International Airport, and Dubai South Logistics District allows seamless international connectivity. This strategic position makes it easier to handle imports, exports, and transshipments across continents.
Government Support and Policies
The UAE government has introduced several initiatives, like the Dubai Logistics Corridor and National Logistics Strategy 2050, aiming to make the UAE one of the world’s top logistics hubs. Investors enjoy simplified business setup procedures, zero import/export duties in free zones, and world-class infrastructure.
Access to Global Markets
Setting up a logistics business in Dubai allows access to the GCC, African, and Asian markets, covering over 2 billion consumers. The city’s trade agreements and regional connectivity make it an ideal base for logistics entrepreneurs targeting international expansion.
Growing Demand for Logistics Services
The rise of e-commerce, manufacturing, and re-export industries has driven strong demand for logistics and delivery solutions. Businesses seek reliable logistics partners to manage supply chain complexities, creating vast opportunities for new entrants.
Stable Economy and Tax Benefits
Dubai offers a tax-friendly environment, with 0% personal income tax and competitive corporate tax rates. Investors also benefit from 100% profit repatriation, no currency restrictions, and simple company ownership laws, making logistics ventures profitable and sustainable.
Step-by-Step Process to Obtain a Logistics License in Dubai
Starting a logistics company in Dubai involves several essential steps. The process varies slightly depending on whether you set up on the mainland or in a free zone, but the core requirements remain similar.
Step 1 – Define Your Business Activity
The first step is to determine your logistics activities. You can register under categories such as:
- Freight forwarding
- Cargo transportation
- Warehousing services
- Supply chain management
- Customs clearance
Clearly defining your business activity ensures that the correct license type is issued for your operations.
Step 2 – Choose the Right Jurisdiction (Mainland or Free Zone)
Dubai offers two main business jurisdictions for logistics companies:
Mainland Setup
- Licensed by the Department of Economy and Tourism (DET).
- Ideal for companies serving clients across the UAE and participating in government contracts.
- Requires a local service agent (for professional license) or full ownership under updated UAE company laws.
Free Zone Setup
- Popular for international operations and re-export logistics.
- 100% foreign ownership and 0% import/export duty.
- Notable free zones include Jebel Ali Free Zone (JAFZA), Dubai South, DWC Logistics District, and Dubai Airport Free Zone (DAFZA).
Each jurisdiction offers unique benefits; choosing the right one depends on your business goals and target market.
Step 3 – Register the Company Name
Select a unique and meaningful trade name that reflects your logistics business. The name must comply with Dubai’s naming regulations — it should not include offensive words, religious references, or political terms.
Step 4 – Apply for Initial Approval
Submit your application to the Department of Economy and Tourism (DET) or the respective Free Zone Authority to obtain initial approval for your logistics activity. This confirms the government’s permission to proceed with the setup.
Step 5 – Prepare Legal Documents
Prepare the following documents for company registration:
- Passport copies of shareholders.
- Emirates ID (if applicable).
- Lease agreement for the business premises.
- Memorandum of Association (MOA).
- Business plan detailing operations and logistics services.
Step 6 – Choose Office and Warehouse Space
Depending on your logistics activity, you’ll need:
- Office space for administration and operations.
- Warehouse facilities for storage and inventory management.
Free zones like JAFZA and Dubai South offer ready-to-use logistics facilities equipped with modern storage, loading, and transportation systems.
Step 7 – Obtain a Logistics License
Once your documents are verified and fees are paid, your logistics license will be issued. This license allows you to conduct logistics and freight activities in Dubai legally.
Step 8 – Customs Registration
If your company handles imports and exports, register with the Dubai Customs Department for a customs code. This step is mandatory for clearance and trade documentation.
Step 9 – Open a Corporate Bank Account
Open a corporate bank account in Dubai to manage client payments, supplier transactions, and operational expenses. Choose a reputable local or international bank that suits your transaction volume and business size.
Step 10 – Hire Skilled Staff and Drivers
Recruit experienced logistics managers, customs officers, drivers, and warehouse personnel. Ensure all drivers possess valid UAE licenses, and logistics professionals understand customs procedures and trade documentation.
Benefits of Starting a Logistics Business in Dubai, UAE
Setting up a logistics business in Dubai offers numerous operational, financial, and strategic advantages.
Strategic Global Hub
Dubai’s position between East and West makes it a vital link for international trade. The city handles millions of tons of cargo annually through air and sea routes, making it ideal for logistics enterprises.
World-Class Infrastructure
The emirate boasts:
- Jebel Ali Port is one of the world’s largest and busiest seaports.
- Al Maktoum International Airport is designed for large cargo volumes.
- Advanced highway networks connecting GCC countries.
These facilities make transportation and storage seamless and efficient.
Free Zone Advantages
Operating from free zones offers:
- 100% foreign ownership.
- Exemption from customs duties.
- Full repatriation of profits.
- Access to modern warehouses and logistics clusters.
Zones like Dubai Logistics City and DWC are specifically designed for logistics and freight businesses.
Government Incentives and Reforms
Dubai’s authorities actively support investors through simplified registration, digital documentation, and fast-track licensing systems. The Dubai Paperless Strategy ensures quick and efficient approval processes for new logistics businesses.
Growing E-commerce and Supply Chain Market
With the rise of online shopping, the demand for last-mile delivery and warehouse logistics is booming. Companies that provide integrated e-commerce logistics can secure strong growth and long-term clients.
Networking and Business Opportunities
Dubai hosts major trade exhibitions like Seamless Middle East and Breakbulk Middle East, providing networking opportunities for logistics companies to build international partnerships and gain contracts.
How Much Does It Cost to Start a Logistics Company in Dubai
The cost of setting up a logistics business in Dubai varies based on jurisdiction, scale, and operations.
Mainland Logistics Company
For a mainland setup, expect costs between AED 25,000 and AED 45,000, covering:
- Trade license issuance.
- Name reservation.
- Initial approval and registration.
- Local service agent fee (if applicable).
- Office rent and utilities.
Free Zone Logistics Company
Free zone logistics companies require an investment of around AED 40,000 – AED 80,000, depending on:
- Zone location.
- Warehouse or office size.
- Activity type (import/export, storage, etc.).
- Customs and registration charges.
Additional Costs
Expense Type Estimated Cost (AED)
Trade License 10,000 – 20,000
Office or Warehouse Rent 15,000 – 50,000 annually
Staff Visa and Insurance 5,000 – 10,000 per person
Customs Registration 2,000 – 3,000
Vehicle Registration 5,000 – 15,000 per truck
Marketing and Branding 10,000 – 20,000
Overall, the total investment can range between AED 100,000 and AED 300,000, depending on the business scale.
Challenges and Solutions in Dubai’s Logistics Industry
Like any business, logistics ventures face operational challenges.
Competition
Dubai’s logistics sector is competitive due to the presence of established players.
Solution: Focus on niche markets like e-commerce delivery, refrigerated transport, or green logistics.
Regulatory Updates
Customs and trade laws may change frequently.
Solution: Partner with compliance specialists or local business setup consultants who stay updated with legal changes.
Rising Operational Costs
Fuel, labour, and rent can impact profits.
Solution: Implement route optimisation software and automate warehouse processes to reduce expenses.
Growth Prospects for the Logistics Sector in Dubai
The UAE’s logistics sector is projected to grow by over 8% annually, driven by e-commerce, technology, and international trade. Initiatives like Dubai Silk Road and Expo City Logistics Hub further strengthen Dubai’s position as a logistics powerhouse.
Companies investing in automation, digital tracking systems, and AI-based inventory solutions will dominate the next decade of growth.
Conclusion
Dubai’s logistics industry is one of the most promising investment opportunities in the Middle East. The city’s global connectivity, business-friendly environment, and advanced infrastructure make it the perfect destination for logistics startups and enterprises.
By following the proper licensing steps, maintaining compliance, and offering quality service, your logistics company in Dubai can achieve long-term growth and profitability.
For a smooth and legally compliant setup, it’s best to work with experienced Business Setup Consultants in Dubai, UAE, who can assist with documentation, licensing, customs registration, and office selection — helping you launch your business successfully.
FAQs
What license do I need to start a logistics company in Dubai?
You need a logistics or freight forwarding license issued by the Department of Economy and Tourism (DET) for mainland companies or by a free zone authority for free zone setups.
How long does it take to get a logistics license in Dubai?
On average, it takes 7 to 14 working days, depending on documentation accuracy and jurisdiction.
Can foreign investors fully own a logistics company in Dubai?
Yes. Foreign investors can own 100% of their company in Dubai’s free zones or under the UAE’s updated company ownership laws.
Is the logistics business profitable in Dubai?
Yes. With vigorous trade activity, e-commerce growth, and global connectivity, logistics businesses enjoy high demand and consistent profitability.
What are the key documents required for a logistics license?
Passport copies, shareholder information, lease agreement, Memorandum of Association (MOA), and a detailed business plan.
Which free zones are best for logistics in Dubai?
JAFZA, Dubai South, and Dubai Airport Free Zone (DAFZA) are among the top choices due to their strategic locations and modern infrastructure.
Can I provide services outside the UAE with a free zone logistics license?
Yes. Free zone companies can handle international logistics operations and re-export activities globally.
How much investment is required for a logistics company in Dubai?
Depending on your business model, initial setup costs range between AED 100,000 and AED 300,000.
