Starting an air cargo company in Dubai opens the door to one of the fastest-growing logistics hubs in the world. Thanks to its prime location, cutting-edge infrastructure, and business-friendly regulations, Dubai is the ideal place to build a successful cargo business. But before operating, obtaining the right license is a must.
Below is a complete guide to launching an air cargo business in Dubai, getting licensed, and growing in a highly competitive market.
Why Dubai is a Top Destination for Air Cargo Companies
Dubai stands at the crossroads of Asia, Europe, and Africa. Its airports—especially Dubai International (DXB) and Al Maktoum International (DWC)—are some of the busiest for cargo in the world. Whether transporting perishables, electronics, or eCommerce packages, Dubai offers unmatched global connectivity.
The demand for air freight is rising steadily, with increasing imports, exports, and last-mile logistics. Companies that enter now can capture a piece of this expanding market.
Choosing the Right Setup for Your Air Cargo Business in Dubai
There are two main options when setting up:
Mainland Setup
A mainland company allows full operations across the UAE and gives access to local contracts, including government tenders. This option suits businesses aiming for regional reach.
Free Zone Setup
Setting up in a free zone like Dubai South or Dubai Airport Freezone (DAFZ) offers:
- 100% foreign ownership
- Tax exemptions
- Simplified customs procedures
- Proximity to key airports
Both structures are valid, but your decision depends on business goals and budget.
Steps to Obtain an Air Cargo Company License in Dubai
Here’s how to legally launch an air cargo company in Dubai:
Step 1: Choose a Trade Name
Pick a name that matches your business and meets Dubai’s naming rules. Avoid religious, political, or offensive terms.
Step 2: Decide on Legal Structure
Common structures include:
- LLC (Limited Liability Company) for mainland businesses
- FZE (Free Zone Establishment) for solo investors in a free zone
- FZCO (Free Zone Company) for multiple shareholders
Step 3: Apply for Initial Approval
Submit your license application to:
- Department of Economic Development (DED) for mainland companies
- Free zone authority if operating inside a free zone
Initial approval confirms the business activity is permitted.
Step 4: Secure External Approvals
Air cargo businesses need additional approvals:
- Dubai Civil Aviation Authority (DCAA): For handling or transporting air freight
- General Civil Aviation Authority (GCAA): For national aviation compliance
- Dubai Customs: For clearance and cargo processing rights
Step 5: Arrange Office Space
Free zones often provide ready-to-use offices near airports. For a mainland setup, leasing office space is mandatory. The location and type of workspace will influence your final license cost.
Step 6: Submit Final Documents
These include:
- Shareholder passports and IDs
- MOA (Memorandum of Association)
- Proof of office address
- Business plan (especially for aviation-related services)
- Initial approvals and NOCs
Step 7: Pay Fees and Receive License
Once the documentation is cleared, pay the license issuance fees. Upon approval, you’ll receive your official air cargo company license in Dubai and can begin operations.
What Is the Cost of Starting an Air Cargo Business in Dubai?
The cost varies depending on the setup, location, and services offered. Here’s a general breakdown:
- Trade license: AED 15,000 to AED 40,000
- Office rent: AED 20,000 to AED 70,000+ annually
- Visa fees: AED 3,000 to AED 7,000 per employee
- External approvals: Costs depend on specific activity
It’s wise to get a custom quote based on your business plan and jurisdiction.
Types of Services an Air Cargo Company Can Offer
Businesses holding an air cargo company license can engage in a range of activities, including:
- Freight forwarding
- Cargo consolidation
- International shipping coordination
- Temperature-controlled logistics
- Aircraft ground handling
- Warehousing and customs clearance
- Express air delivery for eCommerce
Benefits of Starting an Air Cargo Business in Dubai
Here’s why entrepreneurs are flocking to launch in Dubai:
Strategic Global Reach
Dubai is within 8 hours of two-thirds of the global population, offering access to high-demand markets across Asia, Europe, and Africa.
Modern Infrastructure
Cargo terminals, smart warehousing, and efficient customs systems reduce delays and costs.
Business-Friendly Policies
Free zone incentives, tax-free earnings, and simplified visa processes make growth easier.
High Demand
With the rise in eCommerce and global trade, the need for fast, secure air cargo services continues to grow.
Common Challenges and How to Overcome Them
Starting any business has hurdles. Here’s what to watch for in the cargo sector:
Regulatory Complexity
Aviation and customs laws are strict. Working with business consultants can help navigate licensing and permits smoothly.
High Setup Costs
While the returns are high, upfront costs—especially for aviation permissions and office leases—can be significant. Planning budgets in advance is crucial.
Competition
The logistics space in Dubai is competitive. Focusing on niche markets (e.g., perishable goods or same-day delivery) can help carve out a profitable segment.
Conclusion
Starting an air cargo company in Dubai offers a powerful opportunity in a booming industry. With smart planning, the right approvals, and strategic marketing, entrepreneurs can scale fast in this competitive space.
Whether operating from a free zone or mainland, having the correct air cargo company license in Dubai is the key to unlocking international trade routes and sustainable success.
