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How to Start a Transport Business in Dubai

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  • By Robin Sebastian
  • October 15, 2025
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Dubai’s rapid growth as a global trade and logistics hub has opened the door to exciting opportunities in the transport sector. With its advanced infrastructure, expanding e-commerce market, and strong government support, starting a transport business in Dubai can be both profitable and future-ready. Whether it’s cargo trucking, passenger transport, or vehicle rentals, the demand continues to rise, making this the perfect time to begin.

If you’re planning to start your transport business in the UAE, Raes Associates can guide you through every step, from licensing to setup.

Why Start a Transport Business in Dubai?

Dubai’s transportation and logistics industry is one of the strongest in the region, contributing significantly to the UAE’s economy. Let’s look at why entrepreneurs are drawn to this sector:

  1. Strategic Global Location – Dubai connects Asia, Africa, and Europe, making it a natural hub for trade and freight movement.
  2. Tax-Free Benefits – With no personal income tax and minimal corporate taxes, your profit margins stay healthy.
  3. Top-Class Infrastructure – The city’s modern highways, ports, and airports ensure seamless operations for transport companies.
  4. Government Support – Dubai’s Roads and Transport Authority (RTA) and National Transport Authority (NTA) streamline licensing and ensure safety standards.
  5. High Market Demand – Growing trade, tourism, and e-commerce fuel continuous demand for logistics and transport services.

If you’re exploring similar business opportunities, read our guide on starting an e-commerce business for handmade products in UAE.

Understanding the Transport Business in UAE

The UAE’s logistics and transportation market is projected to grow steadily over the next few years, driven by both local demand and international trade. Entrepreneurs can choose from several business models, including:

  • Cargo & Freight Transport – For goods movement between emirates or internationally.
  • Passenger Transport – Including taxis, tour buses, or luxury car rentals.
  • Courier & Delivery Services – A fast-growing niche due to the e-commerce boom.
  • Specialized Transport – For refrigerated goods, hazardous materials, or construction equipment.

Each category has specific licensing requirements, so working with an expert business consultant like Raes Associates helps ensure you stay compliant from the start.

How to Start a Transport Business in Dubai

Setting up a transport company in Dubai involves a series of structured steps. Here’s a simplified breakdown:

Step 1: Research and Create a Business Plan

Identify your target market, competition, and services — whether you want to offer goods delivery, passenger transport, or vehicle rentals. A clear business plan helps secure approvals and funding.

Step 2: Choose Your Jurisdiction

Decide where to register your company:

  • Mainland – For operating across Dubai and the UAE.
  • Free Zone – For international logistics or limited local operations with full ownership.

Step 3: Select a Business Structure

The most common option is a Limited Liability Company (LLC), which protects personal assets while allowing flexibility in operations.

Step 4: Get Approvals and Licenses

You’ll need:

  • Commercial License from the Dubai Department of Economy and Tourism (DET)
  • Transport License (Operation Card) from the Roads and Transport Authority (RTA)
    Additional approvals may apply based on your vehicle type and services.

Step 5: Register Your Fleet and Hire Staff

All vehicles must be registered under your company name. Hire licensed drivers and provide insurance for your fleet and passengers.

Step 6: Set Up Your Office and Operations

Lease an office or warehouse for operations. Open a corporate bank account, and implement technology like fleet management and GPS systems for efficiency.

Need expert help setting up your license and approvals? Connect with Raes Associates today for end-to-end support.

Cost of Starting a Transport Business in Dubai

Starting a transport business in Dubai typically costs between AED 20,000 and AED 50,000, depending on your business model and fleet size.
Your major expenses include:

  • Trade license and RTA permits
  • Office or warehouse lease
  • Fleet registration and insurance
  • Staff recruitment and training

While initial investment may seem significant, the high and consistent demand for logistics and transport services in the UAE ensures strong long-term profitability.

Documents Required to Start a Transport Business

You’ll need to prepare the following essential documents to ensure smooth approval:

  • Passport copies and Emirates IDs of partners
  • Trade name reservation certificate
  • Initial approval from the DET or Free Zone authority
  • Memorandum of Association (if LLC)
  • RTA transport license application
  • Vehicle registration documents and insurance coverage
  • Tenancy contract for office or warehouse space

Having all documentation in order avoids delays and ensures a faster license approval process.

Activities Covered Under a Transport License

Once you receive your transport license in Dubai, you can legally operate activities such as:

  • Cargo transport (light or heavy vehicles)
  • Passenger transport (bus, taxi, or limousine services)
  • Vehicle rental (cars, bikes, or luxury vehicles)
  • Refrigerated and specialized transport
  • Equipment or goods storage and distribution

You can also explore our guide on how to sell on Amazon UAE — another fast-growing logistics-driven business opportunity.

Why Work with Raes Associates?

Starting a transport business in Dubai can seem complicated due to multiple approvals and legal steps, but that’s where Raes Associates can help.
We provide complete support, including:

  • Assistance with trade and transport licenses
  • Guidance on RTA approvals and compliance
  • Help with corporate bank accounts and documentation
  • Expert consultation on cost-effective business setup

Ready to start your transport business in Dubai?

Contact Raes Associates today for a free consultation and get your transport license approved smoothly.

Robin Sebastian

Chartered Accountant | Certified Management Accountant (UAE, India & United States) | Business Setup Consultant | 17 Years of Industry Expertise
Robin Sebastian is the Director of RAES Associates and a qualified Chartered Accountant & Certified Management Accountant with credentials in the UAE, India, and the United States. With over 17 years of industry experience, he specializes in audit, taxation, compliance, strategic financial advisory, and business setup solutions. Robin has helped numerous entrepreneurs and corporations establish and expand their operations in the UAE, offering end-to-end support with company formation, regulatory requirements, and financial structuring. Through his expertise and insights, he empowers businesses to navigate complex financial regulations, optimize resources, and achieve sustainable growth.
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