Dubai’s logistics sector isn’t just propelling the emirate’s economy forward – it’s a game-changer for investors seeking a strategic edge. With a projected Compound Annual Growth Rate (CAGR) of 8.41% between 2020 and 2026 (source: MOEC), this industry presents golden opportunities for investors, entrepreneurs, and businesses of all sizes.
Are you a logistics pro or a startup yearning for a fresh, promising market to propel your business venture? This article dives into a few compelling reasons why opening a logistics company in Dubai, UAE, can be your game-changer. We’ll also explore Dubai’s key logistics freezones and how Corporate Business Services (CBS) can help you navigate the business setup process on Dubai’s mainland or freezone.
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Why Invest in Dubai’s Logistics Sector?
- Flourishing E-commerce Sector: The e-commerce sector plays a role in the growth of logistics in Dubai. With a projected CAGR of 8.41% by 2026, Dubai offers an excellent environment for businesses catering to online fulfilment.
- Government Support & Free Zones: The Dubai government actively supports the logistics sector with infrastructural projects and free trade zones offering 100% foreign ownership, streamlined setup procedures, and 100% tax exemptions, among many other benefits.
- Growing Air Cargo & Land Transport: Dubai is a significant player in air cargo, with Emirates SkyCargo being a world leader. Additionally, the Etihad Rail project underway, the first national railway network, is expected to serve 50 million tonnes of freight.
- Strategic Location: The unparalleled connectivity by air, sea, and land perfectly positioned Dubai, UAE, to serve as a global trade hub, connecting emerging markets in Europe, Asia, and Africa.
- World Logistics Passport & Silk Road Strategy: Dubai’s initiatives like the World Logistics Passport and Silk Road Strategy streamline trade flows and enhance global connectivity, making Dubai a strategic logistics hub.
Key Logistics Freezones in Dubai, UAE
- Dubai South Freezone: Created in 2006 by the government of Dubai, the Dubai South freezone is located closer to the Al Maktoum International Airport and covers an area of about 45 square km. This freezone jurisdiction in Dubai is equipped with high-tech warehousing facilities and provides easy access to downtown Dubai, UAE.
- Dubai Airport Freezone (DAFZA): The DAFZA freezone is situated closer to one of the world’s busiest airports (The Dubai International Airport (DXB)). This freezone is a sought-after destination for most startup logistics companies in Dubai as it currently boasts over 2000+ logistic companies under its jurisdiction.
- Jebel Ali Freezone (JAFZA): Created in 1985, JAFZA is one of the oldest freezone authorities and the 11th largest container port in the world. JAFZA has over 8000+ business entities operating under its jurisdiction and attracts over 24% of Dubai’s Direct Foreign Investment (FDI).
- Dubai Logistics City (DLC): This freezone covers an estimated area of about 140 Sq.Km. DLC is the world’s first platform built to promote logistics and trade facilities in Dubai, UAE, it also holds the record as the current most ambitious project taken by the Dubai government.
Types of Activities for Logistics Business Setup in Dubai
The logistics industry can be very complex, but in Dubai, UAE, there’s a solution for businesses of all sizes. While large companies with complete facilities and equipment like DP World, DHL, and Aramex offer comprehensive solutions, many companies specialize in providing specific logistic services to meet your unique needs.
Here’s a quick list of some of the most common logistics activities in Dubai:
- Freight Brokerage
- Shipping line agents
- Third-party logistics or 3PL
- Air, Sea, and Land Cargo Transportation
- Warehouse management
- Customs Brokerage
How to Start a Logistics Business in Dubai, UAE?
Starting a logistics business in Dubai, UAE, is as simple as launching any business in Dubai. The first step is to strictly define your company goal, business structure, and under which jurisdiction in Dubai you want to register your business then apply for a trade license from the Department of Economy and Tourism (DET).
Dubai offers two main options for company formation – Company formation in Dubai Mainland and Company Formation in Dubai Freezones. Our service for getting a business license in Dubai explains both in detail, which you can find here.
How CBS can help Setup your logistics company in Dubai, UAE?
Ready to tap into the thriving Dubai logistic market? Here at Corporate Business Services (CBS), we are an Emirati-owned business setup and consultancy firm with 17+ years of experience assisting investors, entrepreneurs, and business owners like you in simplifying the process of acquiring a business license with 100% foreign ownership in Dubai, UAE.
At CBS, we always go beyond company registration. We offer free consultations to understand your goals and ensure you select the best setup for long-term success. Our team of experienced business advisors in Dubai will guide you through every step, from choosing the ideal business license, company structure, and jurisdiction (mainland or freezone) based on your goal to handling all the paperwork remotely.
