E-commerce growth in the UAE has been one of the most consistent commercial stories of the past five years, and the logistics infrastructure that supports it has had to grow alongside. Last-mile delivery, fulfilment operations, and warehousing services are no longer a secondary concern for UAE businesses. They are a core competitive differentiator in a market where same-day and next-day delivery expectations are now standard. For entrepreneurs and logistics businesses looking to enter this space, Dubai's geographic position, port infrastructure, and density of commercial and residential addresses make it one of the most commercially attractive last-mile markets in the region. This guide covers the setup costs, activity codes, and license structure at Dubai South. 

What Does a Last-Mile Delivery and Warehousing License Cover? 

A last-mile delivery and warehousing license at Dubai South Business Hub Free Zone covers the provision of courier and delivery services, warehousing and storage facilities management, fulfilment operations, inventory management, and logistics consultancy. This spans B2C parcel delivery, B2B commercial delivery, e-commerce fulfilment, cold chain logistics, and specialist freight handling. For businesses combining logistics with trading activities, the trading hub page covers how those license types can be combined. 

Last-Mile Delivery and Warehousing License Requirements 

Requirements depend on the scope of operations: 

• Courier and delivery vehicles, commercial vehicle registration and road transport permits from the Roads and Transport Authority apply to physical delivery fleets 

• Warehousing, physical warehouse space appropriate to your storage and handling requirements is needed for operational warehousing 

• Cold chain operations, temperature-controlled storage and transport requires specialist facility confirmation 

• Standard free zone documents: passport copy, proof of address, proposed company name 

Dubai South Business Hub Free Zone's location adjacent to Al Maktoum International Airport and near Jebel Ali Port makes it exceptionally well-placed for logistics businesses that handle significant inbound freight volumes. 

Relevant Activity Codes 

Activity codes for last-mile delivery and warehousing businesses at Dubai South Business Hub Free Zone: 

• 7020.15, Logistics Consultancy 

• 8299.11, Other Support Activities Typically Provided to Businesses 

• 7740.99, Intellectual Property Rights Management 

• 7810.00, Employment Placement Agencies 

For specialist logistics and warehousing codes, browse the full list on the business activities page and confirm the most applicable codes with the Dubai South Business Hub Free Zone team. 

Cost of a Last-Mile Delivery and Warehousing License 

A license at Dubai South Business Hub Free Zone starts from AED 12,500 per year for the company license and flexi-desk. Operational costs for a delivery business, including vehicle acquisition, fuel, driver staffing, and warehousing, are significant additional investments. Use the cost calculator to generate an itemised estimate for your license and staffing costs. 

Setting Up Your Delivery and Warehousing Business 

Confirm your company name with the name check tool before applying. The free zone registration is digital and your license is issued within one business day. With your license in place, you have 100% foreign ownership, no personal income tax, and full profit repatriation, with no UAE national sponsor required. For logistics businesses scaling their staffing, Dubai South Business Hub Free Zone supports multiple visa allocations based on your workspace arrangement. 

Why Dubai South for Logistics? 

Dubai South is the UAE's most strategically connected location for logistics businesses. Direct access to Al Maktoum International Airport, 20-minute proximity to Jebel Ali Port, and the Etihad Rail connection provide unmatched multimodal freight access. For a last-mile delivery business that handles inbound international freight before distributing locally, having your registered address and operational base at Dubai South removes a material logistics cost and complexity from your model. 

Frequently Asked Questions 

What license do I need for a last-mile delivery business in Dubai? 

You need a free zone trade or services license with relevant logistics and delivery activity codes at Dubai South Business Hub Free Zone, plus RTA permits for commercial delivery vehicles. 

Do I need a warehouse to register a logistics company in Dubai? 

A warehouse is not required for license registration. For businesses that physically handle and store goods, appropriate warehouse space is a practical operational requirement. 

Can a foreigner own 100% of a delivery and logistics company in Dubai? 

Yes. Dubai South Business Hub Free Zone permits full foreign ownership with no UAE national partner required. 

What is the minimum cost for a logistics business license in Dubai? 

A license at Dubai South Business Hub Free Zone starts from AED 12,500 per year for the company registration. 

Can a free zone logistics company deliver to UAE mainland addresses? 

Yes. Free zone logistics companies with appropriate vehicle permits can deliver to addresses across the UAE mainland. For regular last-mile delivery operations across Dubai, RTA commercial vehicle registration and road transport permits are required. 

How many staff can a logistics company hire through Dubai South Business Hub Free Zone? 

Visa allocations depend on your workspace arrangement. For logistics businesses with larger teams, workspace upgrades supporting higher visa allocations are available. 

Can I operate a cold chain logistics business from Dubai South? 

Yes. Cold chain logistics is operationally well suited to Dubai South given its proximity to the airport and port. Temperature-controlled storage and vehicle requirements apply and should be confirmed with the Dubai South Business Hub Free Zone team. 

Is VAT applicable to logistics and delivery services in the UAE? 

Local delivery and logistics services within the UAE are generally subject to 5% VAT. International freight forwarding and export-related logistics may have different VAT treatment. Confirm your specific position with a qualified adviser. 

Can I combine warehousing with e-commerce fulfilment under one license? 

Yes. Warehousing, fulfilment, and delivery activity codes can be combined under one license at Dubai South Business Hub Free Zone. 

What technology platforms do logistics businesses in Dubai typically use? 

Route optimisation software, warehouse management systems, last-mile delivery platforms, and transport management systems are commonly used by logistics operators in the UAE. Your software and technology infrastructure is separate from your business license and does not affect your registration requirements.