Yes, transportation businesses can be very profitable in Dubai. The city's thriving economy and status as a global hub for business and tourism create a strong demand for transportation services, making it a lucrative market for entrepreneurs.
Starting a transport company in Dubai can cost anywhere from AED 50,000 to AED 150,000, depending on the size and type of operation. For a small to mid-sized trucking company, expect costs between AED 30,000 and AED 40,000. These costs cover various factors, including licenses, vehicle purchases, marketing, and ongoing maintenance.
To start a transport company in Dubai, you need to obtain a trade license, choose a location (mainland or free zone), register your business, and secure necessary permits. This involves submitting a business plan, passport copies of shareholders, and other required documents. You'll also need to obtain a specific transportation license from the Dubai Roads and Transport Authority (RTA) or the National Transport Authority.
In the transport industry, specialized freight transportation (like refrigerated goods, hazardous materials, or oversized cargo), and last-mile delivery services are generally considered more profitable. Logistics businesses and courier services also offer significant opportunities, particularly in growing markets like Dubai.
Yes, foreigners can start and own transport businesses in Dubai. They can operate in both free zones, where they can have 100% ownership, and on the mainland, subject to certain regulations. Dubai welcomes foreign investment and has established business-friendly policies and streamlined procedures to facilitate business setup for non-residents.
Yes, the Roads and Transport Authority (RTA) approval is generally required for all transport businesses operating in Dubai. This includes businesses involved in passenger transport, freight, logistics, and any other activity that involves using vehicles on Dubai's roads.
The minimum number of vehicles required for certain activities in Dubai depends on the type of activity and contract. For example, to transport passengers in luxury vehicles, the minimum number is 10, while for regular vehicles, the minimum is 30. For other contracts, like extended vehicles or those in free zones, the minimum number is determined by the specific contract.
