How to Start a Last-Mile Delivery and Warehousing Business in Dubai
Topic Summary
Why Dubai South Suits Logistics Businesses
Dubai South sits adjacent to Al Maktoum International Airport and within 20 minutes of Jebel Ali Port, giving logistics operators direct access to major freight gateways. Its connection to Etihad Rail further strengthens its position as the UAE's most strategically linked logistics hub.
What Your License Actually Covers
A last-mile delivery and warehousing license at Dubai South Business Hub Free Zone includes courier services, fulfilment operations, inventory management, cold chain logistics, and logistics consultancy. This makes it broad enough to serve both B2C parcel delivery and B2B commercial freight clients.
Key Requirements Before You Apply
Physical delivery fleets require commercial vehicle registration and RTA road transport permits, while warehousing operations need appropriately sized storage facilities. Cold chain businesses must also provide specialist facility confirmation before approval.
Activity Codes to Register Under
Relevant codes include 7020.15 for Logistics Consultancy and 8299.11 for Other Support Activities Typically Provided to Businesses. The Dubai South Business Hub Free Zone team can help confirm which codes best match your specific operational scope.
License Costs Start at AED 12,500
The base annual license and flexi-desk package begins at AED 12,500, though operational costs for vehicles, drivers, fuel, and warehouse space represent significant additional investment. A cost calculator is available to generate an itemised estimate tailored to your setup.
Fast Digital Registration, One Business Day
The free zone registration process is fully digital, with licenses issued within one business day of approval. Approved businesses receive 100% foreign ownership, no personal income tax, and full profit repatriation with no UAE national sponsor required.
Scaling Staff Through Visa Allocations
Dubai South Business Hub Free Zone supports multiple visa allocations based on your chosen workspace arrangement, making it practical to grow a delivery workforce within the free zone structure. This is particularly useful for logistics businesses that need to hire drivers and warehouse staff quickly.
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
