How to open a logistics company in the UAE


Business in the field of logistics is a very profitable and promising investment of capital. In the current market, cargo transportation is in high demand. Experts note the constantly increasing consumer demand, which is steadily leading to a rapid growth of domestic and international freight traffic. This can be attributed both to large international cargo transportation, and to small-scale domestic deliveries of various goods.

So, the opportunity to open a logistics company in the UAE, is one of the best investments. Active development of the national economy of the Emirates creates a constant demand for the services of logistics companies.

The development of the logistics direction in the UAE is explained by 3 factors:

  • Powerful modern logistical capacities of the country.
  • The profitable geographical position of the UAE.
  • There is a favorable legal framework for the Emirates in terms of taxing companies.

It is possible to start logistic business both: opening a real office in Dubai, or opening the virtual office.

Of all the alternative opportunities to open a logistics company abroad, the Emirates have most unique advantages. Moreover, the country has a large number of banks that specialize in providing services to companies engaged in a variety of business areas including logistics.

How to open a logistics company in the UAE?

The key question here is to open a logistic company in the free zone, or setting up a local company. Often, the work of a logistics company in the free zone is done through a virtual office that does not have real employees – only a warehouse is a prerequisite for work. But it’s not so simple. The area of free zones is physically limited and in practice it is not always possible to register a company in them. It is important to note that a company that is open in the free zone can not freely operate in the UAE’s domestic market – so it’s only relevant to create it if it comes to handling transit cargo or out of the country. To work with the domestic market, with the emirates themselves, it is already necessary to open a local company that receives a license. This requires coordination with the regulatory authorities.

Favorable conditions for international business and a variety of advanced technologies allow logistics companies to focus on the organization of efficient and optimized supply chains.

At the same time, foreign investors are more attracted by the loyal state policy and corporate benefits for business.