Dubai is not only a global tourism hub but also a strategic gateway for international trade and transport. Located between Europe, Asia, and Africa, Dubai has become a central player in the global logistics and supply chain industry. With advanced infrastructure, free zones, seaports, airports, and investor-friendly policies, there’s never been a better time to start a logistics business in Dubai.
In this guide, we break down the entire process—licensing, setup, costs, benefits, and everything else you need to launch a successful logistics company in the UAE.
What is a Logistics License in Dubai?
A logistics license in Dubai is a legal permit issued by the Department of Economic Development (DED) or a Dubai Free Zone Authority that allows businesses to operate in the transport, warehousing, cargo handling, freight forwarding, and supply chain sectors.
Depending on your business model and operational scope, you can apply for different types of logistics and transport-related activities, including:
- Freight forwarding license
- Customs clearance license
- Warehousing and storage license
- 3PL (Third-party logistics) license
- E-commerce delivery service license
The license allows companies to engage in domestic and international logistics services while complying with Dubai Customs, RTA, and international freight regulations.
Logistics Industry in the UAE
The UAE logistics market is one of the fastest-growing in the region, projected to reach USD 31.4 billion by 2026. Dubai’s geographic location, political stability, and world-class infrastructure have made it a leading player in GCC logistics and global trade routes.
Key Highlights:
- Jebel Ali Port is one of the largest container ports in the world.
- Dubai International Airport (DXB) and Al Maktoum International Airport (DWC) are major cargo hubs.
- Free zones like JAFZA, DWC Free Zone, and Dubai Logistics City offer specialized facilities for freight and logistics companies.
- Expo 2020 and continuous investments in smart logistics tech have further boosted demand.
- Dubai’s vision to become a global logistics hub supports SMEs and multinational companies alike.
Types of Logistics Businesses in Dubai
Before starting, it’s crucial to decide what type of logistics service you want to offer. Each type may require a different operational setup and regulatory approvals.
Freight Forwarding Company
Offers transportation of goods on behalf of importers/exporters via air, sea, or land.
Courier and Express Delivery Services
Focuses on last-mile delivery for e-commerce, B2B, or B2C clients.
Warehouse & Distribution Services
Provides inventory storage, order fulfillment, and distribution support for companies.
Third-Party Logistics (3PL)
Handles complete logistics operations for clients, including transportation, warehousing, and inventory management.
Cold Chain Logistics
Specializes in temperature-controlled logistics, crucial for pharmaceutical, F&B, and healthcare products.
Customs Clearance Agents
Helps companies clear goods through Dubai Customs, ensuring legal compliance and documentation.
How to Start a Logistics Business in Dubai?
Here’s a step-by-step guide to setting up a logistics company in Dubai:
Step 1 – Choose Jurisdiction: Mainland or Free Zone
You can set up your business in the Dubai Mainland (regulated by the DED) or a Free Zone such as:
- JAFZA (Jebel Ali Free Zone)
- Dubai South Free Zone
- Dubai Airport Free Zone (DAFZA)
- Dubai Logistics City
Free Zones offer 100% foreign ownership, customs exemptions, and specialized logistics infrastructure. Mainland offers more flexibility for onshore operations and direct dealings in the UAE market.
Step 2 – Define Business Activity
Select your specific logistics-related activity such as:
- Freight brokerage
- Cargo transport by land or sea
- E-commerce delivery
- Warehousing
- Third-party logistics (3PL)
The right activity code ensures compliance and operational ease.
Step 3 – Choose Legal Structure
Common structures include:
- LLC (Limited Liability Company)
- Branch of a foreign company
- Free Zone Company (FZCO or FZE)
LLCs are ideal for local operations, while FZCOs are great for global and regional trade.
Step 4 – Register Trade Name
Reserve a unique and relevant trade name with DED or your chosen Free Zone. Avoid using restricted terms or offensive words.
Step 5 – Apply for Logistics License
Submit your application along with:
- Initial approval
- Business plan
- Required documents (see next section)
Step 6 – Lease Office or Warehouse
Depending on your activity, you’ll need a physical office or warehouse space. Free Zones like Dubai South and JAFZA offer pre-built logistics spaces.
Step 7 – Get External Approvals (if needed)
You may require permissions from:
- Dubai Customs
- Road & Transport Authority (RTA)
- Civil Aviation Authority (for air freight)
- Ports and Free Zones Authority
Step 8 – Final License Issuance
Once documents and approvals are in place, pay the final fee and receive your logistics company license in Dubai.
Documents Required to Start a Logistics Business in Dubai
For Individual Entrepreneurs:
- Copy of valid passport and visa
- Emirates ID (if applicable)
- Passport-size photos
- Trade name reservation certificate
- No Objection Certificate (if already on a visa)
For Corporate Investors:
- Memorandum of Association (MOA)
- Shareholder details
- Certificate of Incorporation (for foreign branches)
- Board Resolution
- Business Plan
For All Businesses:
- Tenancy contract for warehouse or office
- Ejari registration (if setting up in mainland)
- Approvals from authorities (Dubai Customs, RTA)
All documents must be submitted in Arabic or with official translations.
What is the Logistics Company License Cost in Dubai?
The total logistics company license cost in Dubai varies based on your chosen jurisdiction, office size, and scope of services.
Estimated Cost Breakdown:
| Expense | Approximate Cost (AED) |
| Trade Name Reservation | 620 – 1,000 |
| Initial Approval | 1,000 – 1,500 |
| License Fee (Mainland or Free Zone) | 10,000 – 25,000 |
| Office/Warehouse Lease | 15,000 – 50,000/year |
| Customs Clearance Registration | 1,000 – 2,000 |
| Visa Application (per employee) | 3,500 – 7,000 |
Total setup cost: AED 30,000 – AED 80,000+
Free Zones often offer startup packages for SMEs that include license, office space, and visa quota under one price.
Benefits of Starting a Logistics Business in Dubai
Starting a logistics business in Dubai comes with several advantages:
Strategic Location
Dubai is centrally located between Europe, Asia, and Africa—making it a top transit and re-export hub.
World-Class Infrastructure
Dubai offers global airports, deep seaports, dedicated logistics zones, and smart warehouses—perfect for supply chain businesses.
Access to Free Zones
Free zones like JAFZA and Dubai South offer 100% foreign ownership, customs exemptions, and easy repatriation of profits.
Business-Friendly Government
Dubai supports entrepreneurs with digital licensing systems, e-services, and one-stop shop portals.
No Corporate or Income Tax
Enjoy tax-free profits with 0% corporate and personal income tax in most zones.
Scalability and Growth Potential
Dubai’s growing economy, especially in e-commerce, retail, and international trade, means endless growth opportunities for logistics businesses.
Conclusion
Launching a logistics company in Dubai is a strategic and rewarding move for entrepreneurs looking to tap into the region’s booming trade and transport industry. With the right licensing, operational setup, and compliance structure, you can build a successful logistics business that serves the UAE, GCC, and global markets.
From freight forwarding and customs clearance to warehousing and e-commerce delivery, the possibilities are endless. All you need is the right guidance and support.
To make the process smooth and legally sound, work with professionals who specialize in Business Setup in Dubai. They’ll handle the documentation, licensing, approvals, and workspace setup—so you can focus on building your logistics empire.
Frequently Asked Questions
Can a foreigner start a logistics company in Dubai?
Yes. In Free Zones, foreigners can own 100% of the business. In Mainland, full ownership is now allowed in many activities under the updated UAE laws.
Do I need a warehouse to start a logistics company?
It depends on your activity. Freight forwarders and delivery services may operate with just an office. But warehousing businesses must lease or build storage facilities.
How long does it take to get a logistics license in Dubai?
If all documents are in order, it usually takes 7 to 10 working days to receive your logistics license.
Is Dubai a good place for international logistics companies?
Absolutely. Dubai’s infrastructure, trade access, and tax incentives make it ideal for logistics, cargo, and freight companies serving global markets.
What are the top Free Zones for logistics in Dubai?
- Jebel Ali Free Zone (JAFZA)
- Dubai South Logistics District
- Dubai Airport Free Zone (DAFZA)
- Dubai Multi Commodities Centre (DMCC) (for trade and distribution)
