At a Glance — UAE Free Zones for Logistics Companies
| Detail | Range / Info |
|---|---|
| Typical licence cost | AED 12,000–50,000+ per year |
| Government fees | AED 2,000–8,000 (varies by zone) |
| Visa eligibility | 2–10+ visas (package and warehouse size dependent) |
| Setup timeline | 5–15 business days |
| Facility options | Office, warehouse, land plot, light industrial unit |
| Company structures | FZE (1 shareholder), FZC (2–50), Branch |
| Foreign ownership | 100% (all UAE free zones) |
| Corporate tax | 0% on qualifying income (free zone regime, conditions apply) |
| Best suited for | Freight forwarding, 3PL, shipping, customs clearance, supply chain, cold chain |
Key Free Zones for Logistics Businesses
| Free Zone | Location | Approx. Entry Cost | Notable Feature |
|---|---|---|---|
| JAFZA (Jebel Ali) | Dubai | AED 15,000–60,000+ | Adjacent to Jebel Ali Port; largest free zone in MENA; global logistics hub |
| Dubai South (DWTC / DWC) | Dubai | AED 12,000–40,000+ | Integrated with Al Maktoum International Airport; Expo 2020 legacy district |
| DAFZA (Dubai Airport) | Dubai | AED 15,000–45,000+ | On-airport at Dubai International; air cargo and time-sensitive freight focus |
| ADAFZ (Abu Dhabi Airports) | Abu Dhabi | AED 12,000–35,000+ | At Abu Dhabi International Airport; ideal for air cargo to Abu Dhabi markets |
| Hamriyah Free Zone | Sharjah | AED 10,000–30,000+ | Port access; industrial logistics, heavy cargo, and manufacturing |
| Fujairah Free Zone Authority | Fujairah | AED 15,000–35,000+ | Gulf of Oman access; oil & gas supply chain; maritime and bunker services |
| RAKEZ | Ras Al Khaimah | AED 8,000–20,000 | Affordable; good for regional distribution and light logistics operations |
Suitable Logistics Activities
UAE logistics free zones support activities including: freight forwarding, third-party logistics (3PL) and fourth-party logistics (4PL), sea and air cargo clearance, customs brokerage, warehousing and distribution, cold chain logistics, courier and express services, shipping agency and ship management, supply chain management, project cargo, bulk and break-bulk handling, container logistics, and hazardous materials handling (with specific approvals).
Verify permitted activities with your chosen zone — warehouse sizes, port access, and specific cargo types are subject to zone-specific rules.
Company Structures Available
Free Zone Establishment (FZE): Single-shareholder structure with full limited liability. Common for owner-operated freight businesses and solo logistics operators.
Free Zone Company (FZC): Multi-shareholder entity (2–50 shareholders). Suited to partnership arrangements or logistics firms with multiple investors.
Branch of a Foreign Company: Extends an existing overseas logistics business into the UAE without forming a new legal entity. The parent company bears full liability.
Step-by-Step Setup Process
- Define your activities and facility needs — office-only, warehouse, or land plot; confirm port or airport access requirements.
- Select your free zone — match to your cargo type, trade route, and client geography.
- Reserve a company name — submit 2–3 options meeting zone naming rules.
- Submit the application — provide activity list, shareholder details, and intended facility type.
- Provide required documents — passport copies, proof of address, corporate documents if applicable.
- Obtain initial approval — typically 3–10 business days for standard licences.
- Select facility package — office, warehouse unit, or land (JAFZA and Hamriyah offer large warehouse and plot options).
- Sign lease and pay fees — finalise facility and licence agreements.
- Receive trade licence — legal authorisation to operate.
- Apply for residency visas — Emirates ID, medical fitness, and biometrics for founders and staff.
- Open a corporate bank account — present licence, MOA, and shareholder documents to your bank.
Required Documents
Individual shareholders require: a valid passport copy, recent passport-size photograph, and proof of residential address. Logistics businesses with warehouse facilities may also need a proposed business plan or cargo type description. Corporate shareholders additionally provide: certificate of incorporation, memorandum and articles of association (notarised and attested), and a board resolution authorising the UAE entity. Customs clearance activities may require additional approvals from UAE Customs.
Indicative Costs (2026)
| Cost Item | Approximate Range |
|---|---|
| Trade licence fee | AED 12,000–45,000/year |
| Government / registration fees | AED 2,000–8,000 |
| Office / warehouse facility | AED 10,000–100,000+/year (size-dependent) |
| Visa (per person) | AED 3,500–5,500 |
| Estimated Year 1 total (office-only) | AED 18,000–65,000+ |
Costs are indicative only and subject to change. Warehouse and plot costs vary widely by size and zone. Verify current fees directly with the free zone authority before applying.
Renewal and Ongoing Costs
Licences renew annually. Warehouse and facility leases are typically annual or multi-year contracts with their own renewal terms. Visa renewals are due every 2–3 years. JAFZA and larger zones offer dedicated account managers to assist with renewals.
Banking and Tax Considerations
Logistics free zone companies may qualify for the UAE’s 0% free zone corporate tax rate on qualifying income, subject to meeting the qualifying activities test and substance requirements. Import and re-export of goods through free zones benefits from UAE customs duty deferral — duties apply only when goods enter the UAE mainland. VAT (5%) applies to certain domestic transactions. Corporate bank accounts for logistics businesses typically require documentation of the business model, supplier and client contracts, and cargo flow information. Engage a UAE-registered accountant to structure your entity correctly from the outset.
Tax and customs rules are complex and subject to change. Seek advice from a qualified UAE adviser for your specific situation.
Our advisers help logistics and freight businesses identify the right free zone, warehouse facility, and licence structure for their supply chain requirements.
Related Guides
- UAE Free Zone for Trading Company
- JAFZA (Jebel Ali Free Zone) — Complete Guide
- UAE Free Zone Licence Cost Guide
- Compare All UAE Free Zones
- Best Free Zones in UAE — By Business Type
- UAE Free Zone Business Setup — Complete Guide
Frequently Asked Questions
Which UAE free zone is best for a freight forwarding company?
JAFZA is widely recognised as the UAE’s premier logistics free zone, directly integrated with Jebel Ali Port — one of the world’s largest container ports — and offering purpose-built warehouses, land plots, and customs facilities. Dubai South suits air cargo and express logistics businesses. DAFZA provides on-airport access at Dubai International Airport for time-sensitive shipments. The optimal choice depends on your cargo type, trade corridors, and facility requirements.
Do I need a warehouse to get a logistics licence in a UAE free zone?
Not necessarily. Many logistics licences — including freight forwarding, customs brokerage, and supply chain management — can be obtained with an office-only arrangement, particularly in zones like RAKEZ or IFZA. Warehousing, 3PL, and physical cargo handling activities typically require a physical facility. Confirm facility requirements for your specific activities with the free zone at the enquiry stage.
Can a UAE free zone logistics company import and re-export goods duty-free?
Goods entering and remaining within a UAE free zone are generally not subject to UAE customs duties. When goods are transferred from the free zone to the UAE mainland, standard UAE customs duty applies. Re-export to third countries from the free zone typically proceeds duty-free. Always verify the specific customs treatment for your cargo type and origin country, as bilateral agreements and commodity-specific rules apply.
How much does a JAFZA logistics licence cost?
JAFZA licence fees for logistics and trading activities typically start from approximately AED 15,000–20,000 per year for office-based operations, with facility lease costs adding significantly for warehouse or plot allocations. Exact pricing depends on the specific licence category, facility size, and current JAFZA rates — contact JAFZA or a registered agent for a current quotation.
Can a UAE logistics free zone company provide services to mainland UAE businesses?
Free zone logistics companies commonly provide freight forwarding, customs clearance, and supply chain services to mainland UAE clients on a B2B basis. For direct retail or certain regulated activities within the mainland, additional approvals may be required. Many logistics firms operate across both zones using an agent or distribution network. Seek professional advice for your specific operational model.
Reviewed: June 2026. This guide is for general informational purposes only and does not constitute legal, tax, or customs advice. Regulations and fees change frequently. Always verify current requirements with the relevant free zone authority or a licensed UAE business setup adviser before proceeding.