Dubai handles 30% of the Middle East's freight and logistics activity. Starting a logistics company here gives you access to Jebel Ali Port (9th largest globally), two international airports, and road networks connecting the entire GCC. The regulatory setup involves RTA, Dubai Customs, and free zone authorities.
RTA Transport Permits
Any company operating commercial vehicles in Dubai needs RTA permits. Categories: Light Transport (up to 3.5 tonnes), Heavy Transport (over 3.5 tonnes), and Freight Brokerage (arranging transport without owning vehicles). Each vehicle needs an RTA commercial vehicle permit (AED 1,500-4,000/vehicle/year). Drivers need UAE heavy vehicle licences — converting a foreign licence requires an RTA test. Insurance is mandatory: comprehensive for owned vehicles, third-party liability minimum. Fleet management system (GPS tracking) is required for 5+ vehicles.
Warehouse Zones and Costs
Best warehouse locations: JAFZA (direct port access, from AED 25/sqft/year), Dubai South Logistics District (near Al Maktoum Airport, from AED 15/sqft/year), Dubai Industrial City (manufacturing and storage, from AED 12/sqft/year), DAFZA (air cargo focus, premium rates from AED 35/sqft/year), National Industries Park (budget option from AED 10/sqft/year). Lease terms are typically 1-5 years. A 5,000 sqft warehouse runs AED 60,000-175,000/year depending on zone and facilities. Temperature-controlled storage costs 2-3x standard rates.
Customs Broker Licence
To clear goods through UAE customs on behalf of clients, you need a Dubai Customs broker licence. Requirements: pass the Dubai Customs Broker Exam (covers tariff classification, valuation, customs law), provide a bank guarantee of AED 100,000-200,000, employ at least one licensed customs broker, and register on Dubai Trade portal. The exam is challenging — study the UAE Customs Law (Federal Law No. 1 of 2003) and the Harmonised System classification. Many logistics companies partner with established customs brokers rather than getting their own licence initially.
First-Year Investment
Small freight brokerage (no owned fleet): DED licence AED 15,000, office AED 20,000, staff visas AED 14,000, insurance AED 5,000, software AED 10,000 = AED 64,000. Mid-size logistics with 3 vehicles: licence AED 15,000, RTA permits AED 12,000, vehicle leases AED 108,000/year, warehouse AED 75,000/year, staff AED 70,000, insurance AED 25,000 = AED 305,000. Full 3PL operation with warehouse: AED 500,000-2,000,000+ depending on warehouse size and fleet.
E-Commerce Fulfilment: The Growth Opportunity
E-commerce fulfilment is the fastest-growing logistics segment in Dubai. Companies like Fetchr, Aramex, and iMile dominate last-mile delivery, but there is strong demand for mid-mile and warehousing services. Dubai CommerCity offers plug-and-play fulfilment infrastructure. Dubai South has designated e-commerce logistics zones. Setting up a fulfilment operation requires: warehouse management system (WMS), pick-and-pack stations, and integration with platforms like Shopify, Noon, and Amazon. Entry cost: AED 200,000-500,000 for a small operation.
Relevant Free Zones
Dubai South
dubai
Setup: 2-3 business days
RAKEZ
ras al-khaimah
Setup: 2-3 business days
UAQ Industrial
umm al-quwain
Setup: 5-7 business days
SAIF Zone
sharjah
Setup: 3-5 business days
CommerCity
dubai
Setup: 3-5 business days
RAK Maritime
ras al-khaimah
Setup: 5-7 business days
ZonesCorp
abu dhabi
Setup: 7-10 business days
KEZAD
abu dhabi
Setup: 7-14 business days
Frequently Asked Questions
Can I run a logistics company from a free zone?
Yes, for international freight forwarding and customs brokerage. JAFZA and Dubai South are the top free zone choices with direct access to port and airport. For local delivery within Dubai, you need RTA permits regardless of where your company is registered. Some operators hold a free zone licence for international business and a separate mainland licence for local transport.
How do I get a customs broker licence in Dubai?
Pass the Dubai Customs Broker Exam, submit a bank guarantee (AED 100,000-200,000), register on Dubai Trade portal, and employ at least one licensed broker. The exam covers tariff classification, customs valuation, origin rules, and UAE customs law. Study time: 2-3 months. Pass rate: approximately 40-50% on first attempt.
What is the cheapest way to start in logistics?
Freight brokerage — arranging transport without owning vehicles. You connect shippers with carriers and earn a margin. Requires only a DED licence (AED 15,000), office, and a good network. No fleet, no warehouse, no customs licence needed initially. Total investment: AED 50,000-80,000.
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