Dubai’s logistics and transportation sector is growing faster than ever. In 2024, the UAE logistics market was valued at around USD 54.5 billion and is expected to reach USD 95 billion by 2033, thanks to its strong infrastructure and global trade links. In Dubai, demand for logistics and industrial spaces jumped by 225% in 2024, while vacancy rates dropped to just 3%, which implies just how active and competitive the market has become.
This rapid growth has attracted many Indian entrepreneurs and investors. In fact, there are already over 40,000 Indian-owned SMEs in the UAE, with investments worth more than USD 37 billion. With full support from the government, like the Dubai Logistics Master Plan 2040, free zone benefits, 100% foreign ownership, and tax-free environments - Dubai is now a global hub for logistics businesses.
If you're looking to tap into Dubai's logistics market, starting a logistics company in Dubai can be a smart move. So, here's everything you need to know about the logistics business setup in Dubai.
Professionals from Shuraa India can help you determine the exact cost based on your logistics business activities. They will also ensure that you do not spend more than required.
Why Start a Logistics Business in Dubai in 2025?
Dubai continues to be one of the world’s most attractive destinations for logistics businesses, and 2025 is shaping up to be a great time to enter the market. Here's why:1. Booming Logistics Sector
Dubai is at the heart of global trade, connecting Asia, Europe, and Africa. With the rise of e-commerce, re-exports, and digital trade, the demand for logistics services is only going up.2. World-Class Infrastructure
From Jebel Ali Port to Dubai International Airport, the city offers some of the best logistics infrastructure in the world. Plus, you get access to high-tech free zones like JAFZA, DAFZA, and Dubai South, all designed to support logistics and trade businesses.3. Easy to Form Partnerships and B2B Contracts
Dubai has a strong B2B culture. Many Indian business owners find it easier to strike logistics partnerships with retailers, manufacturers, exporters, and even government contracts, especially when operating from free zones like JAFZA or Dubai South.4. Transparent Legal System and Reliable Payment Cycles
Compared to some other regions, Dubai offers a relatively transparent legal and commercial system. This means fewer chances of delayed payments or legal disputes. It’s a safer, more predictable environment for new entrepreneurs.5. Simple Setup with Custom Business Models
Dubai offers flexible licensing and structuring options, whether you're starting small as a freight broker or launching a large-scale distribution network. With Shuraa India, the process is quick and hassle-free.6. Room to Grow, Even for Small Startups
Unlike saturated markets, Dubai still offers room for new logistics players, especially those offering reliability, innovation, or regional know-how. Whether you're looking to start with 2 trucks or build a tech-first warehouse operation, there's space for all sizes.Types of Logistics Services You Can Offer in Dubai, UAE
Depending on your business goals and resources, here are the most in-demand logistics services you can consider offering:1. Freight Forwarding
Freight forwarding involves organising shipments for clients, whether by air, sea, or land. You act as a middleman between the shipper and carriers, handling everything from booking cargo space to preparing customs documentation.2. Warehousing & Storage Solutions
Offer storage facilities for goods before they are distributed. Services can include inventory management, packing, and climate-controlled spaces, especially useful for e-commerce and retail clients.3. Transportation & Distribution
Providing ground transport for goods is a core part of logistics. As a transport provider, you can operate a fleet that delivers goods locally or across the GCC. Services may include full truckload (FTL), less-than-truckload (LTL), or express deliveries.4. Last-Mile Delivery
Last-mile delivery refers to getting goods from a warehouse or distribution centre directly to the customer’s doorstep. With the rise in online shopping across the UAE, this service has become essential for retailers and e-commerce companies.5. Cold Chain Logistics
Specialising in transporting and storing temperature-sensitive items like food, flowers, or medicines. This niche service is essential for industries that require strict climate control.6. Reverse Logistics
Manage the return, repair, or recycling of goods. It's a key add-on for e-commerce and electronics businesses looking to improve customer service and sustainability.7. Cargo Handling Services
Cargo handling involves managing the physical movement of goods at ports, airports, and warehouses. This includes loading, unloading, packing, labelling, and securing cargo.8. Third-Party Logistics (3PL)
3PL providers offer complete logistics solutions - handling storage, transport, order fulfilment, and even inventory management for other companies. Many businesses in Dubai, especially small and mid-sized ones, prefer outsourcing logistics to 3PL partners to cut operational costs and focus on their core activities.9. Air & Sea Cargo Services
Focus on shipping goods internationally through Dubai’s airports and seaports. Ideal for companies involved in global trade needing fast and reliable shipping solutions.Which License is Required to Start a Logistics Company in Dubai?
To operate a logistics company legally in Dubai, you need a logistics or transportation license based on the specific services you plan to offer, such as freight forwarding, warehousing, or cargo transportation. This license allows you to store, manage, and transport goods within the UAE or internationally, depending on your business scope.Types of Dubai Logistics Licenses:
Depending on your activities, you may require one or more of the following licenses:- Freight Forwarding License: For managing air, sea, or land cargo on behalf of clients.
- Transportation License: For operating a fleet of trucks, vans, or other commercial vehicles.
- Warehousing License: For offering storage or inventory management services.
- Customs Brokerage License: For businesses helping clients with customs clearance and compliance.
- Logistics Services License: A broader license covering multiple logistics activities, typically issued in free zones.
Issuing Authorities for Logistics Licenses in Dubai:
The relevant authority will depend on your chosen location:A. Mainland Logistics Company:
Dubai Department of Economic Development (DET/DED): For licenses within the Dubai mainland. May require external approvals from RTA, Dubai Customs, or Dubai Civil Aviation Authority, based on the activity.B. Free Zone Logistics Company:
- JAFZA (Jebel Ali Free Zone)
- Dubai South (Logistics District)
- DAFZA (Dubai Airport Free Zone)
- DWC (Dubai World Central)
- DMCC (Dubai Multi Commodities Centre), for logistics related to commodities
What Documents Are Required to Start a Logistic Business in Dubai?
To start a logistics company in Dubai, you’ll need to prepare and submit several key documents, including:- Passport copies of all shareholders and partners
- Visa and Emirates ID (if available)
- Passport-size photos
- Business name reservation certificate
- No Objection Certificate (NOC) from the current sponsor
- Tenancy contract or Ejari (for mainland office/warehouse space)
- Free zone lease agreement (if applicable)
- Location map and site plan for warehousing or transport facilities
- RTA Approval (for transport-related logistics services)
- Dubai Customs registration (for import/export or clearance services)
- Dubai Civil Aviation Authority (DCAA) approval (for air cargo services)
- Insurance documents (vehicle, cargo, and liability insurance)
What are the Steps to Start a Logistics Company in Dubai?
Logistics business setup in Dubai may seem complex, but with the right steps in place, you can get up and running smoothly.Step 1: Define Your Business Activity
Begin by clarifying whether you’ll focus on freight forwarding, warehousing, distribution, last-mile delivery, 3PL, or a combination. Your chosen activity directly shapes the licenses and approvals you’ll need.Step 2: Choose the Right Jurisdiction
Select between Mainland, Free Zone, or Offshore depending on your business model. For example:- Choose Mainland if you want to operate across the UAE and work with government entities.
- Choose a Free Zone like JAFZA, DAFZA, or Dubai South for 100% ownership and customs benefits near ports and airports.
Step 3: Select the Legal Structure
Decide on a suitable legal form, such as LLC, Branch Office, or Sole Establishment, based on your ownership and liability preferences.Step 4: Reserve Trade Name & Initial Approval
Reserve a business name that aligns with UAE naming conventions and apply for initial approval from the respective authority (DED or Free Zone authority).Step 5: Apply for the Dubai Logistics License
Depending on your chosen zone, apply for the relevant logistics license. For freight forwarding, warehousing, or transport, apply through DED (Mainland) or the specific Free Zone authority.Step 6: Secure Premises & Import/Export Code
Logistics companies often require physical office and/or warehouse space. Choose a location that suits your logistics network and get a tenancy contract (Ejari). Register for an import/export code with Dubai Customs to handle international shipments.Step 7: Obtain Special Approvals
Depending on your activity, you may need extra permits from:- RTA (for vehicle registration/transport operation)
- Dubai Customs (import/export)
- Dubai Civil Aviation / Maritime Authorities (air/sea freight)
- Environmental/health authorities (for cold chain, perishable goods)
Step 8: Open a Corporate Bank Account
Choose a UAE commercial bank and submit your trade license, MoA, lease contract, and key personnel passports to set up your business account.Step 9: Hire Staff & Secure Visas
Recruit drivers (with commercial RTA licenses), warehouse personnel, and admin staff. Process visas through GDRFA/MOHRE or free zone portals and complete mandatory medical tests & Emirates ID registrations.Step 10: Acquire Equipment & Vehicles
Purchase or lease commercial vehicles (vans, trucks, cold trucks) and register them with the RTA. Consider fleet tracking and warehouse technology solutions.What Is the Cost of Starting a Logistics Company in Dubai?
The Cost of starting a Logistics Company in Dubai ranges between AED 18,000 and AED 50,000, depending on the type of license you require, the number of visas, the number of vehicles for operations, and driver training costs. Below is a breakdown of key expenses:| Expense Category | Mainland | Free Zone |
| Trade License Fee | AED 18,000 – 50,000 | AED 11,900+ |
| Office/Warehouse Rent | AED 30,000 – 150,000+ | AED 5,500 – 100,000+ |
| Visa (per person) | AED 3,500 – 7,000 | AED 3,500 – 7,000 |
| Approvals (RTA, Customs, etc.) | AED 5,000 – 20,000+ | AED 3,000 – 15,000 |
| Vehicle Registration | AED 1,000 – 3,000/vehicle | AED 1,000 – 3,000/vehicle |
| Insurance and Bank Guarantee | AED 5,000 – 20,000 | AED 5,000 – 20,000 |