Why Dubai Logistics City is the Right Choice for Your Business?

The UAE has developed itself as a significant global logistics hub. The country’s strategic location and vast investment in infrastructure are defining factors of this reality. In fact, the transport and storage sector was a major driver of Dubai’s economy in 2024, showing impressive growth. At the centre of this success is Dubai Logistics City. 

This is not just a place with warehouses. It is a purpose-built free zone within Dubai South. It is designed purely to help logistics and supply chain businesses operate as smoothly as possible. This guide covers all the perks of setting up a business here, the costs, and the simple steps to get your business started in Dubai Logistics City.

Why Choose Dubai Logistics City?

Setting up your business in Dubai Logistics City offers some very real advantages. Here is why it is such a smart move for logistics companies.

• You get direct access to Al Maktoum International Airport, one of the world’s largest cargo hubs.
• You are very close to Jebel Ali Port, a major seaport connecting global trade routes.
• You benefit from streamlined customs processes designed specifically for fast cargo movement.
• You can have 100% foreign ownership of your company without needing a local sponsor.
• You pay zero corporate and personal income tax, maximizing your profits.
• You become part of a huge community focused purely on logistics and supply chain services.

Costs Involved in Setting Up

The investment required to establish a business in Dubai Logistics City depends on your enterprise’s specific requirements. The estimated starting cost may range from AED 25000 to AED 70000, or more, for license and registration in some cases.

Here are the main factors that affect the total price:

• License Type: The specific logistics activities you plan to undertake will determine your license category and its associated fees.
• Warehouse or Land: Renting warehouse space or leasing land for custom building is a major cost. Dubai Logistics City offers various sizes and options.
• Office Space: You will need office space within the zone, ranging from flexi-desks to dedicated offices, impacting your setup budget.
• Visas: The number of employee visas required for your operation will add to the overall cost of your business setup.

A Simple Path to Your Setup

Getting your business established in Dubai Logistics City follows a clear and organized process. Here is how you can get started.

• Define Your Activities – First, clearly list the logistics services your business will offer. This is key for choosing the right license.
• Choose Your Company Name – Select a unique name for your business and get it approved by the Dubai South authority, the governing body for Dubai Logistics City.
• Submit Your Application – Prepare and submit your initial application form along with shareholder documents to the free zone authority. A business consultant in Dubai can help ensure accuracy.
• Pay the Required Fees – After application approval is granted, you will get an invoice. Pay the registration and license fees promptly.
• Sign the Lease and Get the License – Finalize your lease agreement for warehouse or office space. After payment and lease signing, your official license for Dubai Logistics City will be issued. Arnifi handles this entire process smoothly.

Documents You Will Need

To complete your setup in Dubai Logistics City, you will need to provide a standard set of documents. Having these ready makes things faster.

• Completed the application form from Dubai South.
• Passport copies for all shareholders and managers.
• A brief business plan outlining your logistics operations.
• A No Objection Certificate (NOC) if shareholders have existing UAE residence visas.
• A Board Resolution Registration in Dubai if a company is a shareholder.

Built for Efficiency | The Infrastructure Advantage

Dubai Logistics City has been created to deliver speed and efficiency. Linked directly to Al Maktoum International Airport, the airport-to-seaport and seaport-to-airport transhipment of goods is possible without delay. The zone has a strong logistics channel and the most modern facilities. The UAE is ranked amongst the world’s best for logistics infrastructure, according to the Logistics Performance Index by the World Bank.

This is an investment which local businesses in Dubai Logistics City will benefit from with faster turnaround times, lower handling costs, and more efficient supply chains. If you are in freight forwarding, warehousing, distribution, or value-added logistics, you will find this infrastructure a significant competitive advantage. It is one of the central components for company registration in the UAE for logistics companies.

Types of Businesses Thriving Here

Dubai Logistics City is also, of course, home to a vast array of logistics-centric entities. These are some examples of the type of businesses that work so well here.

• Freight Forwarders: Organizations handling the movement of goods internationally by air, sea, or road are attracted to this location as it has transport links.
• Warehousing & Distribution: For companies with a requirement for huge storage space and an effective distribution network, these facilities and infrastructure prove to be a great advantage.
• E-commerce Fulfillment: Thanks to the rise of the online retail sector, those providing a home for storage, packing, and shipping of all those e-commerce brands would feel right at home in Dubai Logistics City.
• Value-Added Services: Businesses that provide services such as packaging, labelling, assembly, or light manufacturing in relation to logistics do well in this specialized environment.

Frequently Asked Questions (FAQs)

What is Dubai Logistics City? 

It is a dedicated free zone within Dubai South, built specifically for companies in the logistics, supply chain, and transportation sectors. It offers unique infrastructure benefits.

Can I conduct business outside Dubai Logistics City? 

As a free zone company, your direct operations might be limited. However, you can easily serve international markets and work with mainland companies through specific legal arrangements.

Do I need a physical warehouse in Dubai Logistics City? 

It depends on your license activity. While many businesses here require warehousing, some service providers might operate from office spaces within the zone.

Is it expensive to set up in Dubai Logistics City? 

Costs are competitive given the specialized infrastructure. While potentially higher than some general free zones, the operational benefits often provide significant long-term value for logistics businesses.

Conclusion

For any business involved in moving goods, Dubai Logistics City offers an unmatched advantage. It has a strategic location, top-notch infrastructure, and pro-business regulations, making it a great logistics hub with regional and global reach. Establishing a presence here puts your firm at the centre of international trade. It is an intelligent investment in efficiency and growth.

Ready to position your logistics business for success? Talk to Arnifi. We specialize in company setups in Dubai Logistics City and can handle your entire registration process seamlessly. Let’s get your business moving.