Dubai is ideally located as an international business hub. Importing and exporting are significant economic development drivers for the United Arab Emirates. A trucking business puts the wheels of the economy into motion, and a trucking company in Dubai can prove to be a very lucrative enterprise.
This article provides information for anyone thinking of starting a trucking business in Dubai, covering the following subjects:
- Trucking business in Dubai and the UAE – an overview
- Advantages of starting a trucking business in Dubai
- Key players in the trucking business in Dubai
- Overview of major trucking companies in Dubai
- Characteristics of successful trucking companies in Dubai
- Comparison of local and international trucking companies in Dubai
- Steps to start a trucking business in Dubai
- Cost of starting a trucking business in Dubai
- Best practices for trucking business owners in Dubai
- Building a strong brand identity
- Developing strong relationships with suppliers and customers
- Investing in technology and innovation
- Business setup in Dubai with Trade License Zone
Trucking business in Dubai and the UAE – an overview
Continued economic development in Dubai and across the United Arab Emirates has resulted in outstanding transport infrastructure. With one of the world’s most highly developed road networks, Dubai is a transport hub second to none. Transportation services and the transportation industry grow with the economy and connect Dubai to the rest of the Middle East, Africa, and further afield in Europe and beyond.
A transport business in Dubai, such as heavy trucks cargo transport, freight forwarding companies, and all the basic services, are at the heart of the UAE’s logistical value chains. The three most significant trucking business sectors are construction, cargo and logistics, making transport one of the biggest economic development boosters.
Advantages of starting a trucking business in Dubai
Dubai’s central location makes it an ideal transportation services hub. The UAE’s National Transport Authority ensures the road links are in excellent operational condition, enabling Dubai’s transportation industry to grow from strength to strength.
Importing and exporting companies in Dubai can trade with the GCC (Gulf Cooperation Council) countries and 18 other Arab countries, making Dubai’s location strategic for transport and logistics companies.
No matter how many trucks your company operates, your business will be busy. There is always something to transport in and around the UAE, and as long as you provide a quality service, your company will grow.
Key players in the trucking business in Dubai
Trucking businesses play a vital role in Dubai’s economy’s supply chain and growth. These are aspects of the trucking industry you need to understand better to provide the best services to customers:
Overview of major trucking companies in Dubai
The major trucking companies in Dubai have fleets that focus on the construction industry, heavy equipment transportation, heavy cargo, and cargo transport. Tanker trucks, courier services, freight-forwarding trucks, and bulk carriers are Dubai’s most popular types of trucking companies.
Characteristics of successful trucking companies in Dubai
The most successful trucking companies in Dubai have the following characteristics:
- Excellent customer service
- Multiple service offerings
- Competitive pricing
Comparison of local and international trucking companies in Dubai
Many international businesses have invested in Dubai’s development, which has resulted in many international trucking companies operating in the emirate. These companies have machinery that focuses on heavy cargo and heavy construction equipment transportation. The local trucking companies focus on bulk carrying of cargo and household services, including freight-forwarding.
Steps to start a trucking business in Dubai
Step 1: Partner with Trade License Zone
Your first step to starting a trucking business in Dubai is to partner with Trade License Zone. Our business consultant specialists will help to manage all aspects of your transport company license application and business structure, and liaise with all the relevant Dubai government authorities and municipality agencies on your behalf.
Step 2: Choose a business name
Choosing a company name for your trucking business in Dubai is all-important. Trade name reservation follows strict rules in the UAE: a business name may not contain any offensive or blasphemous language, or references to Allah or Islam. Names must avoid well-known brand associations; if you’re using your own name, it must be in full, with no abbreviations. Trade License Zone can help you with this process and register your chosen name with the UAE’s Registry Office on your behalf.
Step 3: Selecting a company structure and business activities
Dubai is world-famous for its innovative Free Zones. Free Zones are special economic zones set up for dedicated industries. These offer tax benefits and business support services specific to each industry for foreign investors. Each Free Zone also offers licenses to foreign investors – and of course, access to stunning infrastructure, logistics business clients, skilled workers, and a high volume of customers requiring transportation services.
The business license process has been simplified, but a commercial license is required for trucking and transportation business owners to trade legally in the UAE. Free Zones make this process easier to apply for and get a license for your business in Dubai.
Another business structure to consider is a Mainland Company. This type of setup allows you to trade directly within the local market. For this, you must partner with a local sponsor – an Emirati national – who will hold 51% shares of the company but have no direct, executive control of the company.
One more step to consider is the transportation company’s legal structure, such as an LLC or another.
Your transport company license enables you to trade and operate a trucking company. However, you will need to specify the business activities you wish to conduct. These will determine what type of trading license you can apply for.
The business activities you select will be the only business activities you can conduct in the UAE. If caught engaging in other business activities, you may face severe penalties from Dubai’s authorities.
For any help with this crucial step, contact Trade License Zone’s experienced staff to help you navigate this somewhat tricky process.
Step 4: Documents and applications
You’ll need to apply for a commercial license before applying for your transportation license for your trucking company in Dubai. You’ll need to apply to two government agencies: the Free Zone application with the Dubai Department of Economic Development (DED) and the transportation license with the National Transport Authority grants transport company license approvals.
Here is a list of the documents required for your transport company license:
- Proof of ID and address of directors and shareholders
- Passport copies for shareholders and directors
- Copy of trade name reservation proof from the Registry Office
- Copy of commercial license application
- Business plan
- Proof of initial activity approval from cities management agencies
- Notarised Memorandum of Association (MOA)
- Notarised Articles of Association (AOA)
- Copy of the lease agreement
Step 5: Payment for trucking license
Once the trucking business license application has been approved, you can pay for your trade license. The National Transport Authority and DED will issue your two licenses to begin trading.
Cost of starting a trucking business in Dubai
The cost of starting a trucking business in Dubai is between AED 30,000 to AED 40,000. The cost varies depending on several factors, such as transport business license costs, business setup, rent of warehouse and truck depot space, machinery, staff, visas, government approvals, and more.
For an accurate quote, please contact the expert team at Trade License Zone. We’ll help you with a detailed guide on what costs to expect regarding your business needs and help you to get started as soon as possible.
Best practices for trucking business owners in Dubai
To build a successful trucking business in Dubai, you will need to observe these three important steps:
- Build a strong brand identity
- Develop strong relationships with suppliers and customers
- Invest in technology and innovation
Building a strong brand identity
Developing a strong brand identity in the trucking business is integral to your company’s success. Complete branding of your fleet raises awareness of your business, but that’s not all you should do. You will also need to advertise and network within your sector and industry to enable people searching for your services to find your company more easily. Always maintain a single voice across your media channels and marketing to create a strong brand identity.
Developing strong relationships with suppliers and customers
Clear communication is one of the best ways to develop strong relationships with suppliers and customers in the trucking industry in Dubai. Trucking – and any logistics company in Dubai – relies upon time-efficient services.
The transportation industry is also created on the back of strong partnerships. Hence, forming partnerships with your customers and suppliers, and even other companies within your sector, is essential.
Always remain professional and offer the highest possible levels of service delivery, and treat your suppliers and customers with the customer service you would expect yourself.
Investing in technology and innovation
Investing in technology and innovation always pay dividends in business. Trucking companies can make significant savings and increases in profitability with updated and enhanced software programmes and fleet management platforms.
Business setup in Dubai with Trade License Zone
Business setup in the UAE is straightforward when you partner with Trade License Zone. While the UAE government streamlined the trade license application and company registration processes, our experts will save you time and money and eliminate the frustration of unnecessary delays or rejections.
The specialists at Trade License Zone can get you started with your trucking business in Dubai as soon as you provide us with some basic documentation and information. Our team will then take care of the rest for you: we’ll manage your business setup, communicate with all relevant government departments and authorities, visa amendments and applications, and corporate bank accounts, and report back to you when you’re ready to start trading. It really is that simple.