How to Start a Transport Business in Dubai and the UAE in 2025? 

Dubai is a buzzing hub of commerce and tourism, where expats, residents, investors, and tourists navigate through its lively streets. The transportation network plays a very important role in how the city functions. In fact, the role of transport is more than just mobility, it also paves a path to city’s economic growth and prosperity. 

The growing demands from rising e-commerce, needs of individuals, and government’s undivided attention to the industry together have made Dubai’s transportation and logistics sector a key contributor to the city’s GDP. Thus, there lies evident opportunities for those looking to start their transport business in Dubai. Let us understand the nuances of starting a transport company in Dubai in detail.  

Overview of Transportation Sector in Dubai, UAE 

Dubai’s intricate transportation network stands proudly alongside its shopping malls, skyscrapers, and dazzling attractions that make it a true global hub. Dubai itself is known to be a smart and tech-driven city, and this feature has also been inherited by its various sectors, including transportation.  

What makes the transportation sector a significant chunk of the nation’s GDP income is its foresight, which is completely built around technology and innovation. It is not far from reach that we will witness world’s first ever flying taxis, adorning the skies of the city. From the busy metros, to the detailed network of taxis, buses, and cabs, Dubai’s transportation promises reliable and safe commute. 

Key points related to Dubai transportation sector: 

• Roads and Transport Authority (RTA): Manages and regulates the sector and all transportation businesses in Dubai. 
• Value of the market: UAE’s transport and logistics market size reached AED 21.63 billion in 2025. 
• Government support programs: Programs such as Dubai Commercial Transport Strategy 2030 and UAE transport 2030 plan, aim to increase the competitiveness of the sector. 
• Transportation business opportunities: Cargo and freight trucking, passenger services, car rental, limousine, repairs and spare parts, car wash, and many other possibilities. 
• Growing demand: The consistent growth of ecommerce, tourism, and population in Dubai has created a strong demand and consistent demand for efficient transport and logistics.

Legal requirements for Starting a Transportation Business in Dubai 

There are particular legal requirements in Dubai for starting a transportation business. Here are the main ones listed below: 

1. Trade license: You must get appropriate trade license from Department of Economy and Tourism (DET) in mainland or respective freezone for your transport business in Dubai. 
2. RTA permit: NOC from the RTA is required to get the trade license. 
3. Transportation company license: The transport company license in Dubai, also called as operation card, is issued by the RTA. 
4. Fleet registration: All your vehicles in Dubai transport business must be registered with the RTA for business use. 
5. Licensed drivers: If you plan to hire drivers, they must hold valid UAE license. 
6. Insurance coverage: Comprehensive insurance coverage for the vehicles, drivers, passengers, etc., may be needed as per the RTA regulations. 

Activities covered under Transport License in Dubai 

There are many diverse business activities that can be conducted under a transport company license in Dubai, including: 

• Water transport 
• Luxury vehicles 
• Vehicle fleet management 
• Petroleum transport 
• Passenger transport 
• Vehicle rental 
• Vehicle licensing activities  
• Driver licensing activities  
• Vehicle towing or transport 
• Cargo Transport 

Please note that the list is quite extensive. To get more information, you can contact our experts or visit the official portal of RTA. 

How to Start Transport Business in Dubai? 

The steps to start a transport business in Dubai are as follows: 

Step 1 – Conduct market research: 

Start the process of your business journey by understanding the local transportation business sector. Study the competition, the current pricing structures, and the demand trends. This will help you clearly understand what type of transportation business in Dubai you want to start, who your target market will be, and what marketing strategies to implement. 

Step 2 – Develop business plan:

Based on the research, devise a plan for your business. In that plan, mention your business objectives, your services, and your financial and sales projections. This business plan acts as your roadmap, clearly defining the steps you should follow in your business. 

Step 3 – Choose your business location: 

Finalize the business jurisdiction for your company: mainland or freezone. Mainland in Dubai offers much greater freedom and flexibility to operate across the UAE and international markets. On the other hand, freezones offer 100% foreign ownership, tax exemptions, and a relatively simpler business setup process. Based on your business goals, you must make a decision. 

Step 4 – Decide the legal structure: 

Choose the legal structure for your transportation business: 

• Sole Establishment: A single person opens and runs the business. 
• Limited Liability Company (LLC): A very popular choice, can have a maximum of 50 shareholders. 
• Joint Stock Company: Can be a privately or publicly held joint stock company. 
• Branch: An extended branch of an existing foreign company. 
• Partnership: Two or more partners start a business and share the ownership, profits, and liabilities. 

Step 5 – Register company name: 

Choose a name for your business and get it registered with the government authority. The name must comply with UAE naming regulations. Otherwise, it will not be legally accepted. 

Step 6 – Get the Preliminary approval: 

After your name is registered, proceed with the initial approval application. This is the first and important permission needed for your business setup in Dubai. For some transport businesses, additional permits may be required from the Dubai Municipality or other authorities. Also, NOC from RTA is required for new trade license. 

Step 7 – Finalize office space: 

Find and rent a suitable office space for your transportation business. Make sure the lease agreement is registered on the Ejari portal. 

Step 8 – Apply for the trade license: 

Next, apply for the business license. If you chose mainland, apply with the Department of Economy and Tourism (DET). If you chose a freezone, apply with the relevant freezone authority. 

Step 9 – Apply for the Transport License: 

Along with the trade license from the Dubai government, you also need to obtain a transport license from the RTA to operate your transportation business legally in Dubai. Additionally, the fleet must be registered with the RTA, and all drivers must be properly licensed. 

Step 10 – Get the Visa: 

Acquire the residency visa to stay and operate in Dubai legally. The visa processing involves going through some medical tests and registering the Emirates ID. You can get necessary visas for foreign staff as well.  

Step 11 – Open Business Bank Account: 

Your transport business in Dubai must have a bank account in its own name. Corporate bank account helps you manage your business transactions, payroll, payments, and receipts effectively.  

Step 12 – Post licensing: 

Once your business is licensed successfully, you can start operating. Do not forget to invest in the following: 

• Marketing: Develop marketing strategies to reach target audience, use digital marketing, partnerships and advertising campaigns. Strong marketing helps your brand to outshine competitors.  
• Technology: Implement latest and quality software solutions for fleet management, customer support, invoicing and bookings. 
• Customer service: There should be a reliable support system that will handle all your clients’ queries on time and efficiently.  
• Staff training: Your drivers, administrative and other logistics personnel must be properly trained. 
• Law compliance: Stay updated with RTA regulations, labour laws and business guidelines. Renew your licenses and visas on time. 

Cost of Transportation License in Dubai 

The transport license cost in Dubai starts from AED 12,500*. However, the cost can vary significantly based on your business needs, visa and office requirements, and other factors. 

The cost usually includes initial application fees, trade name fees, RTA permit fees, trade name reservation fees, and other related expenses. To get an accurate quote, we recommend speaking to our experts at Dubiz Business Setup. 

Documents required for Transport Business in Dubai

These are the documents required to start a transport business in Dubai: 

• Business plan 
• Passport copy of owner and shareholder 
• Passport sized photographs 
• Visa copy of the owner and shareholder (if applicable) 
• Company name reservation 
• Lease agreement for office space 
• Initial approval certificate 
• NOC from RTA 
• Notarized MOA and AOA 
• Commercial license 
• RTA transport license 
• Vehicle registration and permits  
• Comprehensive insurance coverage 
• Valid UAE driving license (for drivers) 

Please note there may be additional document requirements. Please contact our Dubiz experts so that they can guide you as per your business needs and specifications.  

Benefits of starting a Transport Business in Dubai 

Here are the advantages of starting a transportation company in Dubai: 

• High market demand: The growing e-commerce, tourism, and local demand in Dubai make the transport business highly profitable. 
• Government support: Dubai’s government is keenly interested in the transport sector and has various programs aimed at taking this sector to the next level. 
• Strategic location: Dubai’s location makes it a global trade hub with international market access through highly advanced logistics and infrastructure. 
• Tax benefits: Dubai offers low corporate tax and certain exemptions, along with lower import and export duties compared to other regions. 
• Free zone benefits: In free zones, you can enjoy 100% ownership with no requirement for a local sponsor. 
• Visa application: There are minimal restrictions on visas, and the process is also simple. 

How Dubiz can help with starting a freight company in UAE? 

Starting a transport company in Dubai can be one of the most profitable ventures in 2025. Dubai’s growing economy, expanding e-commerce, continuous flow of tourists, and abundance of resources make it a perfect place to start a reliable transport service business. Entrepreneurs have a high chance of building a sustainable and high-income business in this sector. 

For starting a transportation business in Dubai successfully, you will need expert guidance. Dubiz Business Setup is ready to offer you all the help you need to navigate through this journey. We will assist you with the necessary permits, licenses, documents, and other steps required. For your efficient and speedy setup, contact us at your earliest convenience. 

• 8+ years of experience in industry 
• 7000 plus company formed successfully 
• Reliable ties with the government authorities 
• Multi-lingual experts from various fields 
• Business ongoing compliance support 

Contact Dubiz: 

📞 Call: ‪+971 56 369 5485       

💬 WhatsApp: ‪+971563695485       

📧 Email: info@dubiz.co

Frequently Asking Questions (FAQS)