How To Set Up A Logistics Or Freight Consultancy In The UAE

May 31, 2024

With the rapid growth of e-commerce and rising international trade, the logistics sector in the UAE has experienced immense growth in the past few years. The field of freight and logistics involves the planning, execution, and control of the movement of goods, both domestically and internationally, using various transportation modes such as air, rail, and road.

According to Mordor Intelligence, the UAE freight and logistics market size is estimated at USD 20.03 billion in 2024, and is expected to reach a whopping USD 27.51 billion by 2029. A key driver of economic growth, logistics has cemented the UAE’s position as a leader in the global trade hub. On a national level, the UAE has also invested significantly in the sector, enhancing infrastructure necessary for shipping, such as seaports, free zones, distribution centers, and freight terminals. 

With freight and logistics becoming a priority for most businesses, it’s no surprise that the demand for logistics consultancy, along with cargo and freight consultancy, is remarkably high. As AI, blockchain, and other cutting-edge technology become a significant part of operations, the demand for effective logistics consulting services is booming.

Below are three popular business activities you can choose from to establish your logistics or cargo and freight consultancy in the UAE. SPC Free Zone provides instant business licenses for all of these sought-after business activities, along with a guaranteed bank account within three business days and a variety of other benefits for aspiring consultants. 

With its deep-rooted ties to the logistics sector, SPC Free Zone also offers in-house warehousing. Similarly, long-term partnerships with industry giants such as Aramex and DHL have given SPC a deep understanding of logistics. 

7020.15 – Logistics consultancy

Logistics consultants act as strategic advisors, leveraging their analytical expertise to understand inefficiencies within a business’s logistics and supply chain processes. They work to develop solutions that optimize customer service, streamline warehouse and material handling operations, and ultimately refine the cost-effectiveness of the entire supply chain, from procurement to delivery.

Under this business license, which falls under the broad spectrum of Management Consultancy, aspiring consultants can provide advice, guidance, and operational assistance to businesses that operate within the field of logistics. From strategic, financial, and organizational planning to production scheduling and control planning, a consultant has multiple avenues through which they can effectively support a client. 

It’s noteworthy to mention that consultancy-related activities that do not fall under this business license include legal advice, accounting and taxes, architecture, engineering, advertising, market research, public opinion polling, computer software for accounting systems, executive placement or search consulting services, and educational consulting.
  • Third-party Approval: No third-party approvals are required for this business activity
  • Filing of Economic Substance Return: Business activity 7020.15 is exempt from this requirement
  • Anti-Money Laundering Compliance: Business activity 7020.15 is exempt from this requirement

7020.22 – Cargo freight consultancy

It’s no secret that cargo and freight consultants are in high demand in the UAE. Businesses are looking for higher investment returns, real-time monitoring, and knowledgeable consultants who know the ins and outs of the shipping world.

Under the umbrella of Management Consultancy Activities, a cargo and freight consultancy license allows field experts to provide advice, guidance, and operational assistance to clients who work in the realm of shipping. From strategy to implementation, freight consultants can help businesses with control planning, organization, efficiency and control, information management, and production scheduling.  

Note that certain consultancy-related activities do not fall under this business license, including legal advice, accounting and taxes, architecture, engineering, advertising, market research, public opinion polling, computer software for accounting systems, executive placement or search consulting services, and educational consulting.
  • Third-party Approval: No third-party approvals are required for this business activity
  • Filing of Economic Substance Return: Business activity 7020.22 is exempt from this requirement
  • Anti-Money Laundering Compliance: Business activity 7020.22 is exempt from this requirement

5229.04 – Logistics activities, i.e. planning, designing and supporting operations of transportation, warehousing and distribution

For consultants in the logistics world, planning and designing activities around transportation, warehousing, and distribution is vital. Consultants and logistics experts can plan their transport strategies and operations around rail, road, sea, or air. This opens doors to limitless possibilities. Freight forwarding, including activities of all sea-freight forwarders and air-cargo agents, are some of the transportation activities consultants can get involved in. 

Here’s a quick look at other activities consultants can participate in: all logistics activities, from planning and design to supporting transportation tasks such as warehousing and distribution, organizing both group and individual consignments from pickup to delivery, brokerage for ship and aircraft space, and involvement in transport documents and waybills—from issuing to procuring these documents. 

Consultants may also freely familiarize themselves with the work of customs agents, thus effectively guiding their clients on how to navigate areas along the supply chain that they may find challenging. Finally, this license allows consultants to work with goods-handling operations, from weighing to protection during transit. A strong knowledge of these various activities is extremely beneficial for all consultants, new or experienced.

It’s noteworthy to mention that consultants who choose this activity cannot participate in couriering, or act as travel agents, tour operators, and tourist assistants. Consultants also cannot play a hand in providing clients with motor, marine, aviation, or transport insurance.
  • Third-party Approval: No third-party approvals are required for this business activity
  • Filing of Economic Substance Return: Business activity 5229.04 is exempt from this requirement
  • Anti-Money Laundering Compliance: Business activity 5229.04 is exempt from this requirement

Did you find what you were looking for? Explore the other guides in our Activity Hub for exploring unique business ideas in Dubai and navigate the essentials of business setup with ease.

You can also calculate your business setup costs easily using our handy cost calculator and choose from our customized company setup packages to find your perfect fit.

Get your business license in the UAE today and explore a world of opportunities waiting for you.

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