How to Start a Cargo Business in Dubai

If there’s one industry that never slows down in Dubai, it’s logistics. Every day, thousands of shipments pass through the city’s ports and airports, connecting businesses across Asia, Europe, and Africa. With the rise of e-commerce, a booming re-export market, and the government’s ambitious D33 Economic Agenda, the cargo business in Dubai has become a primary engine of the UAE’s non-oil economy. In fact, the local logistics market is projected to reach nearly $31 billion by 2031.

But what does this mean for you? Simply put, the demand for reliable cargo, freight, and logistics services in Dubai has never been higher. Businesses of all sizes – from global retail giants to local SMEs – are constantly in need of partners who can move their goods safely, efficiently, and on time. That gap in the market represents a genuine opportunity for those willing to step in and build something.

If you’re considering entering the logistics space, starting a cargo business in Dubai could be a smart and profitable move.

Why Start a Cargo Business in Dubai?

If you’re thinking about stepping into the logistics industry, Dubai offers more than opportunity; it offers a strategic advantage.

1. The Geographic Advantage

Dubai is perfectly positioned at the centre of the East-West Corridor. Within an 8-hour flight, you can reach two-thirds of the world’s population. This makes it the ultimate re-export hub. You can receive goods from factories in Asia and distribute them to markets in Europe and Africa faster than almost any other location.

2. Strong Import-Export Economy

The UAE has a thriving import-export market covering electronics, automotive parts, food products, textiles, machinery, and more. With thousands of trading companies operating in Dubai, the demand for reliable freight forwarding and cargo services remains consistent throughout the year.

3. Growing E-Commerce & Re-Export Market

The rise of e-commerce in the Middle East has significantly increased the need for warehousing, last-mile delivery, and cross-border shipping. Additionally, Dubai acts as a re-export hub, where goods are imported and then shipped to neighbouring GCC, African, and Asian markets, creating continuous cargo movement.

4. The D33 Economic Power-Up

The Dubai Government is currently executing the D33 Agenda, a massive economic roadmap to double Dubai’s GDP by 2033. Billions are being poured into digitalising customs and expanding the Dubai Silk Road. Unlike many global markets facing stagnation, Dubai’s logistics sector is projected to reach over $31 billion by 2031.

5. Massive Tax & Ownership Incentives

Dubai’s Free Zones (like DAFZA, JAFZA or Dubai South) are designed specifically for the cargo industry.

• 100% Ownership: You don’t need a local partner to own your business.
• Tax Efficiency: You enjoy 0% Corporate and Personal Income Tax (provided you meet certain criteria), plus no customs duties on goods stored within free zones for re-export.
• Capital Freedom: There are zero restrictions on repatriating 100% of your profits and capital back to your home country.

6. High Scalability Potential

A cargo business in Dubai can start small (perhaps with freight forwarding) and gradually expand into warehousing, transport fleets, customs clearance, or even international branches. The market allows room for steady growth if managed strategically.

What are the Different Types of Cargo Businesses You Can Start in Dubai?

Depending on your budget, expertise, and target market, you can choose from several business models within the cargo and freight sector.

1. Air Cargo Services

Air cargo is ideal for time-sensitive shipments such as electronics, pharmaceuticals, and high-value goods. With Dubai International Airport (DXB) and Al Maktoum International Airport (DWC) handling massive volumes of global freight, starting an air cargo business can be highly profitable if you focus on speed and reliability.

2. Freight Forwarding Services

This is the most popular entry-level model because it is asset-light. You don’t necessarily need to own ships or planes. You act as a travel agent for cargo, you coordinate with shipping lines, airlines, and trucking companies to move goods from point A to point B. The model is best for those with strong networking skills and knowledge of international trade routes.

3. Sea Freight Services

Sea freight is one of the most common and cost-effective methods for transporting large volumes of goods internationally. With Jebel Ali Port being one of the busiest ports in the world, sea cargo businesses in Dubai benefit from strong global shipping connectivity and steady trade flow.

4. Land Transport Cargo

Land freight services involve transporting goods across the UAE and GCC countries via trucks and trailers. This type of business is essential for regional distribution, especially for construction materials, FMCG products, and retail supplies.

5. Third-Party Logistics (3PL) & Fulfilment

With the explosion of e-commerce in the Middle East, 3PL providers are in high demand. You provide end-to-end services, including warehousing, inventory management, and pick-and-pack services. When a customer buys an item online, you are the one who gets it off the shelf and ready for shipping.

6. Courier & Express Delivery Services

With the rapid growth of e-commerce in the UAE and the Middle East, courier and last-mile delivery services are in high demand. This business focuses on quick, small-package deliveries within cities or across borders.

7. Customs Clearance Services

You can also start a business that focuses specifically on handling customs documentation, compliance, and approvals for import and export shipments. This service is essential for smooth cargo movement in and out of the UAE.

8. Cold Storage & Specialised Cargo

Some industries require temperature-controlled logistics, such as food, pharmaceuticals, and chemicals. Cold chain logistics is a specialised segment that can offer strong returns due to its niche demand and technical requirements.

Licenses & Legal Requirements for a Cargo Business in Dubai

Dubai’s regulatory environment for cargo and logistics has become more digitised and streamlined, but it remains a multi-step process involving several government bodies. To operate legally, you need a dual-layered approval: one for your Business License and another for your Operational Activity.

1. The Trade License:

First, you must choose where your company lives. This dictates your ownership and where you can move goods.

• Mainland (DED): Issued by the Department of Economy and Tourism (DET). This is best if you want to handle last-mile delivery directly to Dubai customers or move goods within the UAE. It allows for 100% foreign ownership in most logistics activities as of 2026.
• Free Zone: Best for international freight and re-exports (e.g., IFZA, JAFZA, Dubai South, or DAFZA). These zones offer 0% corporate tax on qualifying income and are literally built around ports and airports.

2. Mandatory Operational Permits:

A trade license alone isn’t enough; you need No Objection Certificates (NOCs) from specific authorities based on your niche:

• Roads and Transport Authority (RTA): Mandatory if you own a fleet. In 2026, the RTA requires all commercial vehicles to have GPS tracking and an operation card for each vehicle.
• Dubai Customs: You must register to get a Customs Code. This is your digital ID for importing, exporting, and clearing goods through the Dubai Trade portal.
• General Civil Aviation Authority (GCAA): Required if you are handling air cargo.
• Dubai Maritime City Authority (DMCA): Required if you are acting as a sea freight agent.

3. Key Legal Requirements for 2026:

• Ultimate Beneficial Owner (UBO) Registration: You must declare who truly owns/controls the company during the licensing process.
• Ejari (Lease Agreement): You cannot run a cargo business from a virtual office. You must have a physical office (and usually a warehouse) with a registered lease.
• Corporate Tax Compliance: While many Free Zones enjoy 0%, you must still register for Corporate Tax (introduced in 2023) and VAT if your taxable turnover exceeds AED 375,000.
• Insurance: You are legally required to have Third-Party Liability for vehicles and, practically speaking, Marine or Cargo Insurance to protect the goods you carry.

What is the Process to Start a Cargo Business in Dubai?

Like any regulated industry, setting up a cargo company in Dubai requires proper planning, but the steps are straightforward when approached correctly.

Step 1: Decide Your Cargo Business Activity

The first and most important step is defining your exact business activity. The cargo industry has multiple segments – air freight, sea freight, land transport, freight forwarding, courier services, warehousing, cold storage, and customs clearance.

Your chosen activity will determine:

• The type of trade license required
• The approvals you must obtain
• The level of investment needed
• Whether you’ll need vehicles or storage facilities

For example, freight forwarding requires coordination and documentation expertise, while land transport requires trucks and RTA approvals. Being precise at this stage prevents licensing complications later.

Step 2: Choose the Right Jurisdiction (Mainland or Free Zone)

Next, decide where you want to register your company. You can opt for the mainland if you want to operate freely within the UAE market and work with local clients directly. Free Zone is mostly suitable for import-export and international trade, with benefits like 100% foreign ownership and simplified customs processes.

Step 3: Trade Name Reservation

Submit three potential names to the Department of Economy and Tourism (DET) or your chosen Free Zone. Avoid names already in use or terms that imply government affiliation.

Step 4: Apply for Initial Approval

Initial approval confirms that the government has no objection to you starting the business. At this stage, you submit shareholder documents and basic company details.

Step 5: Secure a Warehouse or Office

For cargo, a physical space is mandatory. You must sign a lease and register it through Ejari (for the Mainland) or the Free Zone’s leasing portal.

Note: Your warehouse must meet Dubai Municipality and Civil Defence safety standards.

Step 6: Obtain External Approvals

Cargo businesses often require approvals from multiple authorities, depending on their services:

• Dubai Customs: Mandatory for import-export and freight forwarding businesses.
• RTA (Roads and Transport Authority): Required if operating commercial transport vehicles.
• Civil Aviation Authority: Needed for air cargo handling.
• Port Authorities (e.g., Jebel Ali): Required for sea freight operations.

Step 7: Apply for the Cargo Business License

Once all documents and approvals are in place, you can apply for your official cargo or freight forwarding trade license. After paying the required government fees, your license will be issued. This license legally authorises you to conduct cargo-related activities in Dubai.

Step 8: Register with Dubai Customs

Apply via the Dubai Trade Portal for a Customs Client Code. This is essential for clearing any goods entering or leaving the country. You will likely need to provide a bank guarantee or deposit.

Step 9: Open a Corporate Bank Account

With your trade license and Ejari, you can now open a business account. In 2026, digital banks like Wio or Zand offer faster onboarding for logistics SMEs.

Step 10: Visa Processing & Recruitment

Apply for your Establishment Card to begin sponsoring employee visas. For cargo companies, ensure your drivers have the correct UAE heavy/light vehicle licenses and RTA-issued driver permits.

Step 11: Corporate Tax & VAT Registration

Register with the Federal Tax Authority (FTA). Even if you are in a 0% Free Zone, registration is a legal requirement once you hit the mandatory threshold.

Need Expert Assistance?

Cargo business setup in Dubai involves multiple approvals, documentation, and coordination with different authorities. At Dubiz, we handle the entire process for you – from choosing the right jurisdiction and securing licenses to obtaining customs registration and visas.

Register Your Cargo Business

Documents Required to Start a Cargo Business in Dubai

For a smooth cargo business setup in Dubai, you’ll need to prepare and submit a set of standard legal and registration documents.

• Passport copies of all shareholders
• UAE visa copy (if applicable)
• Entry stamp or visit visa copy (for foreign investors)
• Passport-sized photographs
• Trade name reservation certificate
• Initial approval certificate
• Memorandum of Association (MOA) or incorporation documents
• Office or warehouse lease agreement (Ejari for mainland)
• External approval documents (Dubai Customs, RTA, Port Authority, etc., if applicable)
• No Objection Certificate (NOC), if required
• Business plan (if requested by authority or bank)

What is the Cost of Starting a Cargo Business in Dubai?

On average, the trade license fees for a cargo or freight forwarding business can start from approximately AED 15,000 to AED 25,000 in a Free Zone and may range between AED 20,000 to AED 35,000 or more for a Mainland setup. The final amount depends on the specific activity, authority fees, and facility requirements.

Additional Costs to Consider:

• RTA Approvals: If you operate a fleet, the RTA registration and Operation Cards for your vehicles can cost between AED 3,500 and AED 5,000, plus small fees for mandatory GPS tracking installations.
• Dubai Customs: Registering for your Customs Client Code via Dubai Trade is relatively inexpensive (approx. AED 120), but you should budget for a refundable bank guarantee (usually AED 5,000 to AED 50,000) if you plan to handle duty-deferred shipments.
• Municipality & Civil Defence: If you are leasing a warehouse, expect to pay between AED 2,000 and AED 7,000 for safety inspections and fire safety certifications.
• Investor/Partner Visa: Budget approximately AED 4,000 to AED 6,000 for a 3-year residency. This includes your medical fitness test and Emirates ID.
• Employee Visas: Each 2-year employment visa costs between AED 5,000 and AED 7,000. As an employer, you are also responsible for their mandatory health insurance, which starts at roughly AED 700/year for basic coverage but can go much higher for comprehensive plans.

Ready to Launch Your Cargo Business?

If you look at the bigger picture, Dubai isn’t just a good place to start a cargo business; it’s actually where global trade naturally happens. Ships dock here. Flights connect here. Goods move daily through this city to the rest of the world. When you set up in Dubai, you’re placing your business right in the middle of that movement.

And the best part? You don’t have to figure it all out alone. At Dubiz, we handle the entire setup process from start to finish – license, approvals, customs registration, visas, office space, paperwork… everything. No running around, No confusion and No juggling different authorities. Just one team managing it all while you focus on building your cargo network and getting clients onboard.

📞 Call: +971 56 369 5485

💬 WhatsApp: +971563695485

📧 Email: info@dubiz.co

Frequently Aksed Questions (FAQs)