Dubai Logistics City (DLC): 2026 Business Setup Guide
Dubai Logistics City, universally known as DLC, is the world’s first purpose-built, multi-modal integrated logistics platform. Located within the Dubai South district in south-west Dubai and directly adjacent to Al Maktoum International Airport, DLC was conceived to become the global benchmark for logistics infrastructure – a single bonded free zone environment in which every mode of transport, every logistics function, and every value-adding supply chain service operates under one regulatory roof.
If you are planning to set up a freight forwarding, warehousing, contract logistics, or e-commerce fulfilment business in the UAE, DLC should be at the top of your list. Its co-location with Al Maktoum International Airport, its dedicated bonded corridor to Jebel Ali Port, and its status as a designated VAT free zone make it uniquely suited to businesses that live and die by the speed and cost of cargo movement.
DLC is a free zone regulated by Dubai South, the master developer and authority for the entire Dubai South district. That is the same authority overseeing the broader 145-square-kilometre development that includes residential, commercial, aviation, exhibition, and logistics districts – a city-scale project designed to give Dubai a second economic centre anchored around the world’s largest airport when Al Maktoum International Airport reaches its eventual capacity.
This guide covers everything a logistics investor, freight operator, or corporate decision-maker needs to know: the zone’s background and structure, permitted activities, licence types, the step-by-step setup process, required documents, fees and costs, visa entitlements, available facilities, and how DLC compares to other logistics-focused options in the UAE. All information in this article is sourced from official Dubai South, UAE government, and Federal Tax Authority guidance current as of June 2026.
What is Dubai Logistics City and who regulates it?
The origin and purpose of Dubai Logistics City
Dubai Logistics City was launched as part of what was originally called Dubai World Central (DWC) – a master-planned urban development project initiated by the Dubai Government around Al Maktoum International Airport in south-west Dubai. The broader development was subsequently rebranded as Dubai South, a name reflecting its ambition to become Dubai’s second urban and economic centre.
The Logistics District within Dubai South covers approximately 21 square kilometres and is a fully bonded, single-window free zone environment. Its defining characteristic is multi-modal connectivity: companies operating in DLC have direct access to Al Maktoum International Airport for air cargo, a dedicated bonded road corridor linking the zone to Jebel Ali Port for sea freight, and direct connections to Dubai’s road and highway network for overland distribution. This combination of air, sea, and road access within a single bonded environment is what makes DLC unique among logistics zones globally.
Who is the regulatory authority for DLC?
Dubai South is the regulatory authority for Dubai Logistics City. Established as a government authority overseeing the entire Dubai South master development, Dubai South manages all matters relating to business licensing, land and facility allocation, construction approvals, and the ongoing governance of DLC and the other districts within its jurisdiction.
Every investor seeking to establish a business in DLC will interact primarily with Dubai South throughout the setup process and for annual licence renewals and regulatory compliance. Dubai South’s official portal is dubaisouth.ae, where the business setup process can be initiated and ongoing government service requests submitted.
Where exactly is Dubai Logistics City located?
DLC is situated within the Dubai South district in south-west Dubai, approximately 37 kilometres from Dubai International Airport (DXB) and located directly adjacent to Al Maktoum International Airport (DWC). The zone is accessible via Sheikh Mohammed bin Zayed Road (E311) and Emirates Road (E611), placing it within approximately 35 to 45 minutes of Dubai city centre under normal traffic conditions.
Its proximity to Jebel Ali Port – connected via a dedicated bonded road corridor – means that cargo can move between DLC and one of the world’s busiest container ports without clearing UAE customs in transit. Abu Dhabi International Airport and the Abu Dhabi highway network are also accessible from DLC, broadening the logistics operator’s transport options still further.
What types of business activities are allowed in Dubai Logistics City?
DLC is designed exclusively for logistics, supply chain, and directly related activities. Unlike general-purpose free zones that accommodate a wide range of commercial, professional, and industrial activities, DLC’s permitted activity list is deliberately focused. According to Dubai South’s official guidance, the primary categories of permitted activity within DLC include:
- Contract logistics and 3PL (third-party logistics) operations: warehousing, inventory management, order fulfilment, and distribution services
- Freight forwarding and cargo handling: air freight, sea freight, and multimodal freight forwarding and brokerage
- Express courier and postal services
- E-commerce fulfilment: receiving, processing, packaging, and dispatching orders for online retailers and marketplaces
- Cold chain and temperature-controlled logistics: storage and distribution of pharmaceuticals, food, and other temperature-sensitive goods
- General warehousing: bonded and non-bonded storage
- Airside operations: ground handling, cargo terminal operations, and aviation support services (for airside-connected operators)
- Light assembly and value-added logistics services: kitting, labelling, re-packaging, and minor assembly activities that support outbound logistics
- Logistics technology and consulting: businesses providing software, systems integration, or advisory services specifically to the logistics industry
Activities that fall outside the logistics and supply chain spectrum – such as general trading, professional services, media production, or financial services – are not suited to DLC and should be directed to other Dubai free zones such as DMCC, DIFC, or Dubai Internet City. Investors with mixed-activity requirements should seek specific guidance from Dubai South before applying.
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What licence types are available in Dubai Logistics City?
Dubai South issues the following licence categories within DLC:
Logistics Licence
The Logistics Licence is the core licence for businesses engaged in the movement, storage, handling, and management of goods. It covers contract logistics, freight forwarding, warehousing, distribution, inventory management, order management, courier services, and cargo clearance activities. Holders of a Logistics Licence operate as supply chain service providers – they manage goods on behalf of their clients but do not sell the goods themselves.
Trading Licence
A Trading Licence authorises the holder to import, store, and export goods listed on the licence. Goods may be sold to overseas buyers or to licensed distributors and agents within the UAE mainland, but direct retail sales to UAE end consumers require a separate mainland distribution arrangement. The Trading Licence is suited to businesses that use DLC’s logistics infrastructure as an import-export hub rather than a pure service operation.
Industrial Licence
An Industrial Licence permits light manufacturing and assembly activities, including blending, purifying, repacking, mixing, kitting, and assembling components using standard machinery. This licence is suited to businesses whose logistics operation has a light manufacturing or value-added processing component. Large-scale heavy manufacturing is not within DLC’s scope; businesses requiring heavy industrial facilities should consider Dubai Industrial City or KEZAD.
Service Licence
A Service Licence covers businesses providing professional and support services that directly serve the logistics industry. Examples include logistics technology companies, insurance providers serving freight operators, training organisations, and business advisory consultancies focused on supply chain and logistics.
Education Licence
An Education Licence permits businesses engaged in educational services, training programmes, and educational consulting. This licence category is relevant for organisations operating logistics academies, professional certification bodies, or vocational training programmes serving the logistics workforce.
What legal structures are available for DLC companies?
Free Zone Limited Liability Company (FZ-LLC)
The FZ-LLC is the most common legal structure chosen by investors establishing a new business in DLC. It is a separate legal entity with its own legal identity, distinct from the shareholders’ personal assets. Shareholder liability is limited to the value of shares held. An FZ-LLC requires at least one shareholder, one director, and a general manager. According to Dubai South’s published requirements, the minimum share capital for an FZ-LLC in DLC is AED 300,000, with a minimum share value of AED 1. 100% foreign ownership is permitted with no requirement for a UAE national partner.
Branch of a Foreign Company
A foreign company may establish a branch in DLC without incorporating a separate UAE legal entity. The branch operates under the parent company’s name and legal identity and extends the parent’s liability to its UAE operations. DLC branch offices do not require a board of directors or company secretary; a general manager responsible for local operations is required. The branch name must match the parent company’s name and must include the descriptor “Branch.” Parent company documents – including certificate of incorporation, memorandum and articles of association, and a board resolution authorising the branch – must be provided as part of the registration.
Branch of a UAE Company
A UAE-incorporated company (from Dubai mainland or another UAE free zone) may also open a branch in DLC. This structure is particularly useful for UAE businesses seeking to extend their logistics or trading operations into DLC’s bonded free zone environment without creating a fully separate entity. The same requirements regarding general manager appointment and parent company documentation apply.
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What are the steps to set up a company in Dubai Logistics City?
Step 1: Define your business activity and licence type
The first step is to identify precisely what your business will do within DLC and which licence category it falls under. Dubai South’s activity list is logistics-specific, so this step is usually straightforward for logistics operators. Being clear about your activity at the outset ensures you are directed to the correct application form, the right facility type, and any external approvals that may be required.
Step 2: Choose your legal structure
Select whether your DLC entity will be a Free Zone LLC, a branch of a foreign company, or a branch of an existing UAE company. For most new foreign investors, an FZ-LLC offers the cleanest and most flexible structure. Confirm share capital requirements and shareholder arrangements at this stage.
Step 3: Reserve a trade name
Submit your proposed trade name to Dubai South for review and reservation. UAE naming conventions apply: names must not reference religion, the UAE Government, or public figures without appropriate permissions. Names should reflect the business activity, and acronyms are generally permitted. Once approved, the name is reserved while the application is progressing.
Step 4: Submit your application and obtain initial approval
Submit your completed application form to Dubai South, along with the required supporting documents and your proposed facility requirements. Dubai South reviews the application and, if satisfied, issues an initial approval. This approval authorises you to proceed to facility selection and lease signing.
Step 5: Select and lease your facility
Based on your business activity and operational requirements, select your preferred facility type within DLC: warehouse, land plot for bespoke construction, or shared office space for service or holding entities. Once a facility is agreed, you enter into a lease agreement with Dubai South. The lease agreement is a prerequisite for the final licence issuance.
Step 6: Pay fees and obtain your licence
Once all documentation is in order, the lease is signed, and any required external approvals are obtained, you submit your final licence application to Dubai South together with the applicable fees. Dubai South issues your free zone licence, which formally authorises your business to operate within DLC. The licence must be renewed annually.
What documents are required to register a company in Dubai Logistics City?
The following documents are required for DLC company registration, based on Dubai South’s published guidance. Requirements may vary slightly depending on legal structure and activity. Investors should confirm current requirements directly with Dubai South before submission.
- Completed Dubai South application form (available at dubaisouth.ae)
- Passport copies of all shareholders and the proposed general manager (certified copies may be required)
- Curriculum vitae (CV) of the proposed general manager
- Business plan or project summary outlining the proposed activity, investment level, expected workforce, and operational overview
- Signed facility lease or pre-lease agreement for DLC premises
- Notarised power of attorney, if a UAE-based representative is submitting on behalf of shareholders
- No-objection letter from current UAE sponsor (required for UAE residents already on a different visa)
- For branches of foreign companies: notarised and apostilled parent company documents including certificate of incorporation, memorandum and articles of association, board resolution authorising the branch, and evidence of registered address
Documents in a language other than Arabic require a certified Arabic translation. Documents originating outside the UAE must be notarised in the country of origin and either apostilled (for Hague Convention countries) or attested through the UAE embassy in that country and legalised by the UAE Ministry of Foreign Affairs.
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What are the government fees and setup costs at Dubai Logistics City?
Setup costs in DLC vary depending on licence type, facility size, number of visas, and whether a bespoke facility is being constructed on a land plot or a pre-built unit is taken. Dubai South does not publish a single fixed fee schedule, and costs are confirmed on application. The indicative figures below are drawn from publicly available guidance from business setup advisers who work regularly with Dubai South and are provided for general orientation only. Investors must verify all fees directly with Dubai South before making financial decisions.
| Cost Component | Indicative Range (AED) | Indicative Range (USD) | Notes |
| Company registration / incorporation fee | AED 5,000–10,000 | USD 1,360–2,720 | Paid once on formation |
| Annual licence fee | AED 12,000–30,000+ | USD 3,270–8,170+ | Varies by activity and licence type |
| Warehouse/facility lease (per sq m/year) | AED 150–400+ | USD 41–109+ | Varies by size, type, and airside access |
| Land plot lease (per sq m/year) | Varies | Contact Dubai South | Depends on plot size and location |
| Visa application (per employee) | AED 3,000–5,000 | USD 820–1,360 | Includes medical and Emirates ID |
| Total indicative setup cost (excl. facility) | From AED 40,000–100,000+ | From USD 10,900–27,200+ | Registration + licence + initial visas |
UAE Value Added Tax (VAT) implications for transactions within DLC depend on the specific nature of those transactions and whether DLC qualifies as a Designated Zone under the UAE VAT legislation (Federal Decree-Law No. 8 of 2017 on VAT). Investors should obtain specific UAE VAT advice from a qualified adviser before commencing operations.
What is the minimum share capital requirement at Dubai Logistics City?
For a Free Zone LLC established in DLC, Dubai South requires a minimum share capital of AED 300,000, with a minimum share value per share of AED 1. This is a stated minimum requirement and differs from some other UAE free zones where no minimum is published.
For branches of foreign or UAE companies, there is no separate UAE share capital requirement for the branch itself; the branch operates under the financial standing of its parent entity. The parent company’s registered capital in its home jurisdiction is referenced in the registration documents but is not separately required to be deposited in the UAE.
Investors should note that the stated AED 300,000 minimum for an FZ-LLC is a regulatory floor, not a ceiling. Businesses should capitalise their entity in a manner that genuinely reflects the scale and nature of their planned logistics operation, as undercapitalisation relative to the scope of the activity can raise questions during the application review process and may affect banking and financing relationships.
How many visas can I get with my DLC licence?
The number of employment visas available to a DLC company is determined primarily by the type and size of the facility the company occupies. Because DLC businesses typically operate from warehouse, logistics, or industrial facilities that are substantially larger than standard free zone office space, the visa quotas available to DLC companies are generally much higher than those available to commercial free zone entities.
As a general benchmark applied across UAE free zone and industrial environments, MOHRE (the Ministry of Human Resources and Emiratisation) uses a ratio of approximately one visa per nine square metres of registered workspace as a starting point. For warehousing and logistics operations, the quota calculation is based on the total licensed floor area of the facility, not just the administrative office portion. A modest warehouse of 1,000 sq m, for example, can support a workforce visa quota appropriate for a sizeable logistics team.
According to publicly available data from business setup advisers familiar with DLC, the zone can support visa quotas of up to 200 or more for large-format logistics operators, depending on facility size and activity. For smaller units or service-licence holders in shared offices, the quota will be considerably lower and aligned with the footprint of the workspace.
UAE Emiratisation obligations under the Nafis programme and MOHRE regulations apply to logistics businesses above certain workforce thresholds. The applicable Emiratisation percentage and thresholds should be confirmed with MOHRE before hiring commences, as non-compliance fines can be significant.
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What facilities and office options are available at Dubai Logistics City?
Warehouses and ready-to-use logistics units
DLC offers a range of pre-built warehouses and logistics units available for immediate occupation. These units are equipped with essential infrastructure including power, water, telecommunications, and dock-levelling or ramp access suited to heavy goods vehicles. Units vary in size, allowing both small-scale operators and large 3PL businesses to find space appropriate to their volume. Some units include integrated office and mezzanine space, giving businesses their administrative and operational areas under one roof.
Land plots for bespoke build-to-suit facilities
Investors requiring custom-built logistics or warehousing facilities can lease dedicated land plots within DLC and construct their own facility to their operational specification. All plots benefit from DLC’s road network, engineered for heavy goods vehicles, and from the zone’s established utility infrastructure. Land lease terms provide the medium-to-long-term stability that large logistics operations require to justify significant construction investment. Construction must comply with Dubai South’s standards and the relevant Dubai municipal planning approvals.
Cold chain and temperature-controlled storage
DLC supports temperature-controlled and cold chain logistics operations, which are critical for the pharmaceutical, healthcare, food, and perishables sectors. Operators requiring temperature-controlled facilities can access purpose-built units or construct their own cold chain warehouses on leased plots. Dubai’s position as a major air freight hub makes DLC’s cold chain capabilities particularly relevant for pharmaceutical and food businesses serving the Gulf, East Africa, and South Asian markets by air.
Airside access facilities
A subset of DLC’s logistics facilities has direct airside access to Al Maktoum International Airport’s cargo infrastructure. For air freight forwarders, express couriers, cargo terminal operators, and aviation support businesses, airside-connected premises provide a critical operational advantage: cargo can move between the bonded warehouse and the aircraft without leaving the bonded free zone environment and without incurring unnecessary customs processing time. Airside facilities are subject to additional security and regulatory requirements from the General Civil Aviation Authority (GCAA) and are available only to operators with appropriate airside permits.
Shared office and business centre options
For service-licence holders, holding companies, or businesses in the early stages of their DLC setup, Dubai South provides shared office and flexi-desk options within the zone’s business centre facilities. These options provide a legally valid DLC free zone business address and a modest working environment without committing to a full warehouse or logistics facility lease. They are particularly useful for logistics consultancies, technology companies serving the logistics sector, and businesses that intend to take a larger operational facility once operations are established.
What are the key benefits of setting up in Dubai Logistics City?
100% foreign ownership
Companies established in DLC are permitted to be 100% foreign-owned, with no requirement for a UAE national partner, sponsor, or local agent. This is consistent with the broad liberalisation of UAE company formation introduced under Federal Law No. 32 of 2021 on Commercial Companies. For international logistics operators who have historically encountered ownership restrictions in other jurisdictions, DLC’s full foreign ownership structure is one of its most commercially significant advantages.
Zero customs duties within the free zone
DLC’s status as a free zone means that businesses operating within it pay zero customs duties on the import of goods, equipment, and materials into the zone, and zero customs duties on the export of goods from the zone to international markets. This is a fundamental cost advantage for logistics operators whose business model depends on the efficient and cost-effective movement of goods across international borders.
Investors should be aware that when goods move from DLC into the UAE mainland market for sale, standard UAE import customs duties (currently 5% on most goods) may apply, depending on the origin of the goods and applicable rules of origin. The precise customs position for specific goods should be confirmed with the Federal Customs Authority before commencing mainland sales activities.
VAT Designated Zone status
DLC is treated as a VAT Designated Zone under UAE VAT law (Federal Decree-Law No. 8 of 2017), subject to specific conditions. For qualifying supplies of goods between businesses within Designated Zones, VAT is not triggered under certain conditions. This can provide meaningful cash flow and cost advantages for logistics operators managing goods in transit within the bonded zone. The precise VAT implications of DLC operations are complex and depend on the nature of the supplies, the identity of the parties, and the VAT registration status of the businesses involved. Operators should obtain specific VAT advice from a UAE-registered tax adviser before commencing operations.
UAE corporate tax considerations
The UAE introduced a federal corporate tax of 9% on taxable profits exceeding AED 375,000, effective for financial years beginning on or after 1 June 2023, under Federal Decree-Law No. 47 of 2022. Small businesses with taxable profits of AED 375,000 or below benefit from a 0% rate.
Whether DLC companies qualify as Qualifying Free Zone Persons (QFZPs) and therefore benefit from a 0% corporate tax rate on qualifying income depends on the specific nature of their activities and how Dubai South is classified under the corporate tax regulations. Investors are strongly advised to obtain guidance from a UAE-registered tax adviser before structuring their DLC entity.
Multi-modal logistics connectivity
DLC’s defining operational advantage is its multi-modal connectivity: direct co-location with Al Maktoum International Airport for air cargo, a dedicated bonded road corridor connecting the zone to Jebel Ali Port for sea freight, and direct access to Dubai’s highway network for overland distribution. No other logistics zone in the UAE offers this combination of air, sea, and road access within a single bonded environment, which is what makes DLC the platform of choice for major global logistics operators.
Purpose-built logistics infrastructure
Unlike general commercial free zones that add a logistics element to a primarily commercial or professional services environment, DLC has been designed from the ground up for logistics operations. Its road network is engineered for heavy goods vehicles. Its utility and telecommunications infrastructure meets the demands of large-scale distribution operations. Its zoning framework ensures that noisy, traffic-intensive logistics activities are not constrained by adjacency to residential or light commercial uses. For logistics operators, the quality and suitability of the physical infrastructure is not an afterthought – it is the core value proposition.
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Are there any unique advantages or special incentives at Dubai Logistics City?
Dubai’s position as the pre-eminent logistics hub of the Middle East, Africa, and South Asia region means that DLC businesses benefit from a market position that no other logistics platform can replicate. Al Maktoum International Airport is designed to eventually become the world’s largest airport with a planned cargo capacity of 12 million tonnes per annum. When fully built out, this positions DLC as the largest integrated air-logistics platform in the world.
Dubai South actively supports businesses that align with its vision of DLC as a global logistics benchmark. Large strategic investors and businesses that bring new capabilities to the zone may be eligible for tailored support, including bespoke facility design, land lease terms, and introductions to the Dubai government’s broader investment promotion network.
DLC businesses also benefit from Dubai’s AFTA (Air Freight Terminal Access) model and from Jebel Ali Port’s status as the largest container port between Rotterdam and Singapore. The bonded corridor connecting DLC to Jebel Ali effectively makes the zone a sea port extension, enabling logistics operators to manage both air and sea freight within a single regulatory environment.
Finally, Dubai South’s role as the master developer of the entire Dubai South district – which includes the Residential City, the Expo City Dubai legacy development (home of Expo 2020), the Aviation District, and commercial real estate – means that DLC sits within a rapidly developing urban ecosystem with growing consumer, commercial, and industrial demand.
How does DLC compare to other free zones and logistics options in the UAE?
Logistics Zone Comparison: DLC (Dubai South) vs JAFZA vs KEZAD vs Dubai Industrial City
| Feature | DLC (Dubai South) | JAFZA | KEZAD | Dubai Industrial City |
| Regulator | Dubai South | Jafza / DP World | AD Ports Group | TECOM Group |
| Primary focus | Multi-modal air-sea logistics | Port-based trade & logistics | Industrial & port logistics | Industrial manufacturing |
| Location | Dubai South, adj. Al Maktoum Airport | Jebel Ali, adj. Jebel Ali Port | Khalifa Industrial Zone, AD | Dubai South, Jebel Ali area |
| Foreign ownership | 100% | 100% | 100% | 100% |
| Customs duties | Zero in zone | Zero in zone | Zero in zone | Zero in zone |
| Min. capital | AED 300,000 (FZ-LLC) | Varies by structure | Not publicly stated | Varies by structure |
| Best for | Air-sea freight, 3PLs, e-comm | Port-intensive trade & storage | Heavy industrial + port logistics | Manufacturing + light logistics |
DLC is best suited to businesses for which multi-modal air and sea logistics connectivity is the core operational requirement, particularly air freight forwarders, 3PLs, e-commerce fulfilment operators, and airside cargo handlers. JAFZA is better suited to businesses for which sea-port proximity and very large-scale storage are primary concerns. KEZAD serves Abu Dhabi-based industrial and port-linked logistics operators. Dubai Industrial City serves manufacturers rather than logistics service providers.
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Tips: Five Things to Know Before Setting Up in Dubai Logistics City
- Confirm whether you need airside access before selecting your facility. Not all DLC facilities have direct airside access to Al Maktoum International Airport. If your business model requires the ability to move cargo directly between your warehouse and the aircraft – which is essential for express couriers, perishables handlers, and certain air freight forwarders – you must specifically request an airside-connected facility. Demand for these units is higher, so clarifying this requirement early in the process gives you the best chance of securing the right space.
- Understand the VAT Designated Zone rules before you start trading. DLC’s Designated Zone status is one of its most commercially valuable attributes for logistics operators, but the VAT treatment of transactions within and out of Designated Zones is complex. Get qualified UAE VAT advice before you commence operations, not after – retrospective VAT issues can be costly.
- Plan your Emiratisation obligations before you recruit. If your DLC operation will employ more than a certain number of workers, Emiratisation quotas under the Nafis programme will apply. Understanding your obligations before your first hire – and building a recruitment and training plan around them – avoids the disruption and fines that come from non-compliance.
- Factor in the minimum share capital when structuring an FZ-LLC. DLC’s AED 300,000 minimum share capital for a Free Zone LLC is higher than the requirement in many other UAE free zones. Ensure your entity is adequately capitalised and that the capital structure reflects your business plan. Banks will scrutinise this when you apply for a corporate account.
- Use the Dubai South business setup portal as your primary channel. Dubai South has invested in its digital setup infrastructure, and the dubaisouth.ae portal is the primary channel for application submission, document upload, and ongoing licence management. Familiarise yourself with the portal early and use it systematically. For ongoing government services beyond Dubai South’s own scope, Dubai’s government digital channels – including the Dubai Now platform – provide a broad range of municipal and regulatory services relevant to DLC businesses.
Ready to Set Up in Dubai Logistics City? Talk to Business Setup HQ
Setting up a logistics operation in Dubai requires more than completing a form. From confirming the right licence type and facility for your operation to navigating Emiratisation obligations, structuring your entity for tax efficiency, and managing the document legalisation process, there are decisions at every stage that carry long-term implications for your business.
At businesssetuphq.com, our team brings over 22 years of combined experience in UAE company formation across free zones, mainland, and specialised economic zones, including Dubai Logistics City. We offer a free initial consultation to help you understand your options, estimate your costs, and plan your timeline.
Contact us today at businesssetuphq.com/contact to book your free consultation.
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Frequently Asked Questions About Setting Up in Dubai Logistics City
Yes. Dubai Logistics City is a free zone within the Dubai South master development, regulated by Dubai South as the free zone authority. Companies established in DLC benefit from 100% foreign ownership, zero customs duties on imports and exports within the zone, and a dedicated free zone regulatory framework separate from the UAE mainland company law.
DLC is designed exclusively for logistics, supply chain, and directly related activities. Businesses engaged in general trading, professional services, media, financial services, or other activities unrelated to logistics are not suited to DLC and should explore other Dubai free zones. Some service activities that directly support the logistics industry – such as logistics technology companies, supply chain consulting, or insurance for freight operators – may be permissible; this should be confirmed with Dubai South for the specific activity.
The setup timeline depends on the legal structure chosen, the activity, the facility type, and the completeness of the documents submitted. According to publicly available guidance, the process typically takes one to three weeks for standard applications with complete documentation. Activities requiring additional approvals – such as cold chain pharmaceutical operations requiring MOHAP approval, or airside activities requiring GCAA permits – will take longer. Facility availability can also influence the timeline.
Yes. Once your DLC free zone licence is issued, you can sponsor employment and residency visas for employees through the standard UAE process managed by the General Directorate of Residency and Foreigners Affairs (GDRFA) Dubai. The number of visas available depends on your facility size and the quota confirmed at the time of licensing. For large warehouse operators, visa quotas can be substantial. The quota can be reviewed and increased as your operation grows.
Yes. Foreign companies can establish a branch in DLC without forming a separate UAE legal entity. The branch operates under the parent company’s name and legal identity and must submit notarised parent company documentation – including certificate of incorporation, memorandum and articles of association, and a board resolution authorising the branch – as part of the registration process. A general manager must be appointed to oversee local operations.
Goods moved from DLC into the UAE mainland for sale or distribution may attract UAE customs duties of 5% on most categories of goods, depending on the origin of the goods and applicable rules of origin. The bonded status of DLC means that goods remain in a duty-suspended state while within the zone; customs duties are triggered at the point of entry into the mainland. Investors should confirm their specific duty position with the Federal Customs Authority and a UAE customs specialist before establishing mainland distribution channels.
There is no publicly stated minimum staffing requirement for initial setup in DLC. However, DLC operations are designed for substantive logistics businesses, not single-person consultancies or shell structures. Once your workforce exceeds certain thresholds, Emiratisation obligations from MOHRE will apply, and it is important to understand these before commencing hiring. Current thresholds and Emiratisation targets for free zone logistics businesses can be confirmed with MOHRE or through the Nafis programme.
DLC free zone companies can enter into contracts with mainland UAE clients for the provision of logistics services, but carrying out physical logistics activities on the UAE mainland – such as warehousing goods in a mainland facility or providing transportation services on the mainland under your DLC licence – may require a mainland business licence or a mainland branch. Investors who intend to serve both free zone and mainland clients should seek specific advice from Dubai South and a UAE legal adviser about the most appropriate structure for their operations.
