Uploaded on Aug 22, 2022
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.
How to Start a Logistics Company in Free Zone, Dubai, UAE
How to Start a
Logistics Company in
Free Zone, Dubai, UAE
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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.
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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:
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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]
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