Guide on Starting a Logistics Business in Dubai
Out of the many contributory factors, a stable economy is one of the leading reasons responsible for attracting investors to Dubai. A budding entrepreneur will find their feet in Dubai in no time, as the process of business setup in Dubai has become effortless, owing to the incessant policy amendments and initiatives being introduced by the UAE govt.
Like any business, logistics and supply chain management in the UAE plays a crucial part in the functioning of the UAE’s economy. Logistics in the UAE caters to shipment, warehousing, and distribution.
Dubai’s geographical position gives it an upper hand over its environs when it comes to ease of access. The ports of Dubai are built to facilitate easy shipment and transport to European and Asian countries. As a consequence, Dubai controls almost 50% of the total share in logistics in the UAE.
If you’re an entrepreneur who’s perspicacious enough to construct a foolproof plan, then you can easily maximize on the gains from your logistics business in Dubai. However, you may also require a sizeable investment to gain a stronghold in that domain.
Logistics Business Hubs in Dubai
Generally, all the seven Emirates are prosperous and apposite for business setup. However, the success in the logistics business also depends on how well the ports are connected to the inland of the Emirate. This is why, choosing the right Emirate for logistics business is of paramount importance.
Most free zones in the Emirates offer you a logistic business license. However, choosing the right free zone is the key to a successful logistics business setup.
Out of all the free zones, there are three free zones that stand out as the most ideal places to setup logistics business in the UAE.
Dubai South Free Zone
The most commendable aspects of the Dubai South Free Zone (DSFZ) happen to be its extensive infrastructure and unfaltering governmental support. It sprawls over an area of 145 sq. km. and is in close proximity to Al-Maktoum Airport.
Not to mention that the govt. has invested heavily in this free zone for the future, Dubai South Free Zone also has easy access to Downtown Dubai and the adjacent Emirates, making it an exceptional choice for logistic business in Dubai. Currently, it is the free zone with the highest success rate of attracting logistic businesses in the UAE.
Dubai Airport Free Zone
DAFZA is a common acronym thrown around when talking about logistic business in the UAE. Short for Dubai Airport Free Zone, DAFZA lies very close to one of the busiest airports in the world. This enables it to form a direct line of communication and transport to Europe, Middle East, India, and the rest of the world.
DAFZA is home to more than 1,800 companies and over 15,000 professionals. The world-class infrastructure and the ease of access to facilities make it one of the best free zones for not just logistics business, but also any business in general. Unsurprisingly, some of the biggest names in the logistic business are headquartered in DAFZA.
Jebel Ali Free Zone
Established in 1985, three and a half decades has given Jebel Ali Free Zone (JAFZA) enough time to grow enormously. With more than 8000 entities, JAFZA rose to fame in the early 1990s as one of the top free zones to setup business in UAE. JAFZA is responsible for 24% of Dubai’s FDI, hence making it ideal for Dubai business setup.
Procedure for Setting up a Logistics Company in UAE
The procedure and documents that entail a logistics company setup in UAE are fairly similar to that of any other Dubai business setup. It basically involves four steps:
- Initial Approval: To obtain the initial approval, you must submit an application to the respective free zone authority. Along with the application must be attached the required documents.
- Registration of the Business: The logistics company that you want to establish must be registered with the relevant authority. This step also requires the submission of the required documents.
- Submission of Business Plan: The legal structure of the business, the business plan, and other applicable documents have to be submitted for assessment.
- Company Incorporation: In the last step, you will have to pay a specified amount to obtain an incorporation certificate from the registrar of companies, and only then proceed to start your business activities.
Get Started Here
If you are dreaming of starting your own company and carrying it forward with a team of employees under your wing, then consider that dream accomplished. We, Cross Link International, will start your company for you, so you don’t have to!
Cross Link International is one of the best business setup consultants in Dubai and will assist you in company formation, PRO Services, Visa Services, Business License renewal, Trade Licenses, free zone company formation, LLC company formation, Dubai Business Setup, and many more services that entail business formation. Reach out to us through + 971 4321 6631 / + 971 55 744 6445 or fill-in this form to get a free consultation from us.
