How to Start a Logistics Company in Free Zone, Dubai, UAE


Dubaisouth

Uploaded on Aug 22, 2022

Category Business

Dubai is the epicenter of trade and commerce in the UAE, and industries of all kinds are flourishing in this region due to its favorable business environment. Dubai's geographic location and infrastructure, in particular, make it an ideal supply and distribution gateway, with revenue expected to exceed USD 30 billion by 2035. The logistics industry in Dubai is also fiercely competitive. This means that if you want to gain a strong foothold in this market and thrive in the future, you will need to invest significantly in the capital.

Category Business

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How to Start a Logistics Company in Free Zone, Dubai, UAE

How to Start a Logistics Company in Free Zone, Dubai, UAE “ Last year’s pandemic revealed several flaws in the global logistics industry, as well as having serious consequences. The UAE, on the other hand, is one of the few countries to have emerged from the bad situation as soon as possible. It is the only country that has experienced sustained growth in the logistics industry following the pandemic. UAE acknowledges that the virus was present, is present, and will remain, but it must stabilise its logistics industry regardless, and in this regard, UAE has performed admirably thus far. We believe that there has never been a better time to start a logistics company in Free Zone, Dubai, UAE. 2 Important information to consider before establishing a logistics company in Dubai, UAE: Given the perks and benefits, there is no better place for a logistics business on a global scale. However, there are a few things you should be certain of before establishing a logistics business setup in UAE: 3 Customs, documentation, and paperwork processes: You must be aware of all customs procedures, paperwork, and documentation requirements. Before entering the logistics industry, you should be well-versed in customs and the clearance process. 4 In-person meeting with your client: A one-on-one meeting with a logistics supplier is extremely beneficial because it ensures clear communication between all involved parties and reduces the likelihood of any mishaps. Credit terms with a signed agreement are also essential. This makes it easier to resolve any future conflicts. 5 Understanding the logistics market: The logistics market in Dubai is quite fragmented, with many suppliers spread across the UAE. This means that hiring an experienced company is the best option. It will help you save money, avoid clearance failures, and are usually well-versed in all customs rules. 6 Logistics in Dubai is certain to thrive, thanks to the presence of some of the world’s busiest seaports and airports. It also has excellent road connections to the neighbouring Emirates and countries surrounding the UAE. So, whether you want to start a logistics business to sell locally, internationally, or domestically, you can do so. Setting up a logistics business in Dubai has certain advantages, such as tax benefits, where businesses pay extremely low taxes. This business has no minimum capital requirement, no currency restrictions, and no visa restrictions. Dubai provides a free cargo and freight connection, as well as free- zone benefits, which boosts additional business activities and opportunities. 7 Dubai’s four major logistics business hubs are: Dubai South Free Zone: Established in 2006 by the government of Dubai, the Dubai South Free Zone provides world-class infrastructure as well as exceptional government support. The Dubai South Free Zone is 145 square kilometres in size and is located near Al Maktoum Airport. This free zone is well-planned, with high-tech warehousing and easy access to downtown Dubai. The government has made additional investments in light of the free zone’s prospects as it emerges as a highly flourishing zone of Dubai. This is currently the most popular jurisdiction for logistics firms in the UAE. 9 Dubai Airport Free Zone (DAFZA): Another popular location for a logistics business setup in Dubai is the Dubai Airport Free Zone (DAFZA). Dubai airport is one of the busiest in the world, with a trading route to Europe and connected geographies, providing significant benefits to companies formed in DAFZA. DAFZA is home to over 1800 businesses and 15000+ professionals. Some of the world’s largest logistic conglomerates have their headquarters here. 10 Jebel Ali Free Zone (JFZA): The Jebel Ali Free Zone (JFZA) was founded in 1985. It currently has over 8000 entities operating in the jurisdiction, making it one of the top free zone jurisdictions in Dubai. JAFZA receives approximately 24 percent of Dubai’s FDI. 11 Dubai Logistics City (DLC): Dubai Logistics City (DLC), also known as Dubai World Central, is the world’s first platform designed to promote logistics and trade facilities in the United Arab Emirates. It has a total area of 140 square kilometres. This free zone is Dubai’s largest and most ambitious government project. The DLC’s companies are spread across a large area, with an annual air cargo turnover of nearly 12 million tonnes. 12 Transportation of Cargo: Air Cargo Transportation: Air cargo transportation can include air freight, airport packing and sorting, air fleet management (including leasing and freight forwarding), and freight forwarding. Sea Cargo Transportation: Sea cargo transportation includes containers, RORO, and bulk sea freight, packing and sorting at seaports, and vessel and container leasing. 13 Land Cargo Transportation: Overland freight by road and rail, shipment expediting, and dispatch support for groupage cargo. Third-party logistics, also known as 3PL: 3P applies to any service contract involving commodity storage and shipping. This includes client warehousing and transportation services. A 3PL company may provide a single service such as warehousing, transportation, or inventory management. They may, however, provide system-wide bundling of services and management of a client’s entire supply chain. More info visit here: https://www.articlevibe.com/how-to-start-a-logistics-company-in-fr ee-zone-dubai-uae/ 14 Contact Us Dubai South Address: Dubai South Headquarters: P.O. Box 282228, https://www.dubaisouth.ae/ Dubai South, UAE Contacts: Within UAE (toll free): 800-SOUTH / 800-76884 International: +971-800-76884 Email: [email protected] 15