Set Up a Logistics Business in Dubai: Process & Best Free Zones Explained

Dubai isn’t just a glamorous travel destination — it’s a global logistics powerhouse. Thanks to its strategic location between Asia, Europe, and Africa, this Emirate has become a magnet for trade and transport.

If you’re an entrepreneur looking to break into the logistics space, Dubai gives you a unique edge: world-class infrastructure, zero income tax, and seamless access to international markets.

But setting up a logistics business in Dubai isn’t just about location. It’s about tapping into a market that supports innovation, offers 100% foreign ownership in many zones, and opens doors to booming sectors like e-commerce, freight forwarding, and cold chain logistics.

In this guide, we’ll walk you through everything you need to know — from why Dubai is the go-to logistics hub to how to get your business up and running legally, efficiently, and profitably.

About the Logistics Industry in Dubai

The logistics and transportation sector is one of the backbones of the UAE economy. According to the Dubai Chamber of Commerce, logistics contributes over 14% to the UAE’s GDP, and it continues to grow as the city becomes a hub for global trade and digital commerce.

Here are a few quick facts about Dubai’s logistics infrastructure:

• Jebel Ali Port is the largest man-made port in the world and the busiest in the Middle East.
• Dubai International Airport (DXB) and Al Maktoum International Airport (DWC) are key players in air cargo movement.
• Dubai Logistics Corridor connects Jebel Ali Port, Al Maktoum Airport, and various free zones — a multimodal marvel.
• The UAE National Rail Network (Etihad Rail) is expanding, promising smoother domestic and GCC-wide cargo movement.

From cargo handling to last-mile delivery, from cold storage to freight forwarding — Dubai has created a world-class logistics ecosystem that supports every niche of the supply chain.

Benefits of Starting a Logistics Business in Dubai

So, why are so many entrepreneurs choosing Dubai to launch their logistics operations? Here are the key advantages:

1. Strategic Location

Dubai sits at the crossroads of East and West. This gives logistics companies in the UAE a natural advantage in reducing transit times and accessing major global markets within 4–8 hours by air.

2. World-Class Infrastructure

Whether you need ports, airports, highways, or warehouses — Dubai delivers. The government has invested billions in infrastructure upgrades, including the expansion of Jebel Ali Port and AI-powered warehouse zones.

3. 100% Foreign Ownership

4. No Personal or Corporate Income Tax

Dubai’s business-friendly tax regime means more profits stay in your pocket. Free zones also offer exemptions on import/export duties.

5. High Demand from E-commerce & Global Trade

The growth of e-commerce in the MENA region, combined with strong re-export activity, makes logistics services in demand year-round.

6. Access to Free Zones and Mainland Options

You can tailor your business structure based on your target market — whether it’s B2B international shipping or local warehousing and delivery.

Can Foreigners Open a Logistics Business in Dubai?

Yes — and it’s easier than ever before.

Thanks to recent reforms under the UAE Commercial Companies Law and free zone policies, foreigners can own 100% of a logistics company without requiring a UAE national partner — especially when setting up in designated free zones.

Here’s what you should know:

Foreign investors are also eligible for long-term residence visas depending on investment size, making it even more attractive to relocate and build a business in Dubai.

How to Set Up a Logistics Business in Dubai?

Setting up a logistics business involves several legal and administrative steps. To help you get started, below is a detailed guide:

1. Choose the Right Jurisdiction

You can set up in:

• Mainland – for companies targeting the local UAE market.
• Free Zones – for international operations and 100% foreign ownership.

2. Define Your Business Activities

Common activities include:

• Freight forwarding
• Cargo transport (land, sea, or air)
• Warehousing & storage
• Courier services
• Cold chain logistics

Ensure your activity is listed in the official activity list by the Department of Economic Development (DED) or your chosen free zone.

3. Finalize the Legal Structure

Popular options include:

• Limited Liability Company (LLC) for mainland
• Free Zone Company (FZCO or FZE) for free zones

4. Reserve a Business Name

Your trade name must follow UAE naming guidelines and reflect your logistics activity.

5. Obtain Initial Approval

Submit your documentation and get pre-approval from:

• DED (for mainland)
• Relevant Free Zone Authority (for free zone businesses)

6. Lease Warehouse or Office Space

Free zones often include smart warehouses and logistic parks. Leasing space is essential to obtain your license.

7. Apply for a Trade License

This is your official operating permit. Submit your final documents, tenancy contract and pay fees.

8. Register with Dubai Customs and RTA (if needed)

This is mandatory for businesses involved in freight and transport.

9. Open a Corporate Bank Account

You’ll need your trade license and legal documents to open a business bank account in Dubai.

Best Free Zones in Dubai for Logistics Companies

Here are some of the top-rated free zones specifically designed for logistics and supply chain businesses:

1. Jebel Ali Free Zone (JAFZA)

• Direct access to Jebel Ali Port
• Home to over 8,000 global companies
• Ideal for international trade, cargo, and supply chain services

2. Dubai South (DWC)

• Built around Al Maktoum Airport
• Designed as a logistics and e-commerce hub
• Offers ready-to-move warehouses and last-mile delivery zones

3. Dubai Airport Freezone (DAFZA)

• Premium free zone adjacent to DXB airport
• Ideal for air cargo businesses and re-export services

4. Dubai Industrial City (DIC)

• Great for large-scale warehousing and manufacturing logistics
• Low-cost setup with road and rail access

5. Dubai Multi Commodities Centre (DMCC)

• While not logistics-exclusive, it provides great access to trade licenses and international business networks

Top Logistics Business Ideas to Start in Dubai

Looking for inspiration? Here are high-potential logistics business models to consider in Dubai’s fast-moving market:

1. Freight Forwarding Company: Coordinate air, sea, and land shipments for B2B clients and global traders.

2. E-commerce Fulfillment & Last-Mile Delivery: Partner with online stores to handle picking, packing, and doorstep delivery.

3. Cold Chain Logistics: Specialize in transporting perishable goods like food, flowers, and pharma.

4. Customs Brokerage Services: Help companies navigate Dubai’s import/export regulations and documentation.

5. Third-Party Logistics Services: Offer warehousing, order fulfillment, and supply chain management for SMEs.

6. Courier and Express Parcel Services: Start a hyperlocal or regional courier company catering to individuals and retailers.

7. Fleet Management Services: Own and lease cargo vans, refrigerated trucks, or heavy vehicles with driver support.

Conclusion

Dubai is not just “open for business” — it’s investing aggressively in being the logistics hub of the future. With infrastructure backed by innovation, liberal business laws, and tax-friendly policies, there has never been a better time to set up a logistics business here.

Whether you want to run freight across continents, build a cold chain for medical goods, or power Dubai’s booming e-commerce space with last-mile delivery, the market is ready.

So if you’re an entrepreneur with vision, now is the moment. Dubai isn’t just the gateway to the Middle East — it’s your launchpad for global logistics success.