The delivery service business in Dubai has quickly changed over recent years with added momentum provided by the worldwide COVID-19 pandemic. As customers increasingly turned to online platforms for shopping, the demand for efficient and fast delivery services increased in Dubai.
The delivery market in Dubai is expected to grow 17.84% from US$23.21 billion in 2025 to US$52.76 billion by 2030. The growing market trends show new business owners a promising future in Dubai delivery services while serving modern tech-using customers who want convenient shopping options. Discover our complete guide on how to start a delivery business in Dubai to transform your business setup journey with convenience.
Benefits of Starting a Delivery Business in Dubai
Starting a delivery service business in Dubai opens up a universe of advantages. Some of them are mentioned below:
- Thriving Market: Dubai’s delivery market reaches billions of dollars each year while also offering excellent business expansion prospects.
- Steady Growth: Deliveries grow more popular as Dubai gains people and shifts to online shopping plus new consumer tastes.
- Flexible Jurisdiction Options: Entrepreneurs have two options to launch their delivery business either in Mainland or Freezone regions based on their business direction.
- Streamlined Setup Process: Setting up a delivery business in Dubai requires easy procedures and allows minimal legal paperwork to move forward quickly.
- Low Initial Investment: A modest budget lets entrepreneurs start their delivery company services without needing high startup funds.
- Cost-Efficient: Running a delivery service is lucrative and cost-effective in Dubai as it involves low startup costs so investors can easily join the booming delivery market.
Steps to Start a Delivery Service Business in Dubai
Starting a delivery service company is an easy task, but you need to make a proper business plan or consult Xpert Advisory to make the business setup process smooth and efficient. Here is the simple process of how to start a delivery business in Dubai:
Choose the Legal Structure
When establishing a delivery service in Dubai, selecting the appropriate business structure is crucial. You can choose between a Limited Liability Company (LLC) or a professional license, each offering distinct advantages. An LLC allows for a broader range of business activities and can be beneficial if you plan to expand services in the future. A professional license, on the other hand, is typically suited for service-oriented businesses and may offer simpler setup procedures.
Choose Business Location
Choose whether to operate in the Dubai Mainland or within a Free Zone. Mainland companies in the UAE can conduct business without any restriction but need to partner with a native entity to run their business. A Free Zone company allows foreign entrepreneurs or investors to benefit from 100% foreign ownership, tax exemptions but are generally limited to operating within the Free Zone and may need a local agent to conduct business in other parts of the UAE.
Register A Company Name
Choose a unique name of your delivery service company and get it registered with the relevant authority. Ensure that the name you select is not offensive or similar to any existing company’s name. Select a name that is simple, relevant, concise, and memorable to draw attention to your business.
Apply for Delivery Service Trade License
Complete the application form for your delivery service company in Dubai and submit it to the relevant authority to obtain initial approval for your business. Additionally, you will need to get ready for the MOA and obtain your DED payment voucher. Upon submitting your payment, you will be granted a delivery service license. A delivery service license in Dubai is granted by the appropriate government authority to the potential investors.
Find Potential Partners
To get your company up and operating, you will have to find suitable partners. Your possible delivery partners may be anybody. Here is a list of companies you may collaborate with as a delivery service provider:
- Restaurants, cafes, and parlours
- Online stores
- Grocery Shops
- Home businesses
- Flower shops
- Corporations
Hire Staff
The effectiveness of your team will significantly influence the success and growth of your delivery business. It is essential to guarantee that your delivery team is properly trained, well-spoken, and proficient in their tasks.
Apple for Visa
Apply for visas for yourself and your family. Submit the visa applications to the relevant department. Additionally, as an employer, you might find it necessary to sponsor visas for employees when bringing them in from abroad.
Open Bank Accounts and Set Up Payment Gateways
To receive payments for your delivery services, you’ll need to set up payment gateways in your app and establish bank accounts. To proceed, you’ll need to open a corporate bank account.
Documents Required to Obtain a Delivery License in Dubai
To start a delivery business in Dubai, you need to provide the following documents to the appropriate authority:
- Preliminary approval of the licensing authorities (Dubai Economy – Free Zones)
- Copies of the partners’ passports
- Emirates ID of citizen partners
- Valid visit or residence visa for partners
- NOC from the sponsor in case the partner is a non-GCC citizen
Once the above documents are cleared, the RTA will issue an NOC, allowing you to move forward to the DED for the completion of the license. You can also consult professional business setup consultants like Xpert Advisory to ensure accurate documentation and smooth business setup without any delays.
Activities Under Delivery Service Business License
- Home and Office Deliveries: Transporting items such as documents, packages, and goods between homes and working locations.
- Online Food Delivery: Collaborating with local restaurants and cafes to deliver food and drink orders to customers.
- E-commerce Order Fulfillment: Assisting online stores by moving purchased products from merchants to buyers.
- Courier and Parcel Services: Transporting the pickup and drop-off of parcels and packages for customers and businesses between their offices and residences.
- Specialized Deliveries: Transporting particular items including flowers, package items, and medical products at right time according to the requirements of the client.
Cost of Delivery Service License in Dubai
The cost of a delivery license in Dubai can vary based on various factors related to your business. The type, size, business model and structure, legal requirements, and jurisdiction in which you establish a delivery service company can significantly influence the overall cost. The business setup consultants you choose to assist with your company formation in Dubai can also influence the overall cost of obtaining the license.
The estimated delivery license cost in Dubai typically falls between AED 6,500* and AED 10,000*. Additionally, obtaining a permit from the RTA is necessary, with an estimated cost of around AED 1000* and a processing time of 3-5 days.
Tips to Market a Delivery Service Business in the UAE
The purpose of delivery service is to fill the gap between the provider and the consumers. If you need to know how to start a delivery business that grows in the competitive delivery service industry of UAE, follow these tips:
Craft a Unique Brand Identity
Building a solid brand identity is essential for making your mark in the market. The logo, business cards, flyers, website, and all graphics should harmonize to showcase your corporate colors, distinguishing you in the marketplace. This enhances your visibility and enables you to create greater awareness for your brand and delivery services business.
Leverage the Power of Social Media
Social media platforms like Twitter Facebook, WhatsApp, Instagram, and TikTok create effective platforms to advertise your startup business. These platforms enable you to reach many potential customers through content that engages them successfully. Your new business needs a social media marketing campaign to strengthen its overall marketing strategy.
Entice Customers with Attractive Promotions
Special promotions help customers discover your business while discounts bring new customers to your company. Consider implementing promotions such as free delivery offers, exciting competitions where customers can win their orders at no cost, and initiatives that recognize and reward loyal customers for their ongoing support.
Amplify Trust Through Customer Reviews
Share customer reviews on social media channels to boost your brand and highlight satisfied customers. This feedback helps build credibility and trust in new brands.
Connect Through Community Events
Dubai hosts many local celebrations and events for local people to attend. Attend all local festivals, trade shows, and community events to promote the services you are offering in Dubai. Connecting with new people at these events helps you build relationships and attract more clients.
Adopt Cutting-Edge Technology
Investing in technology such as delivery monitoring tools, custom management software, and other mobile applications for live order tracking can enhance efficiency and improve customer satisfaction. Digital platforms for customers to place orders and monitor their shipments help your business outperform competitors.
Build Strategic Partnerships
Collaborate with online stores, local restaurants for food delivery services in Dubai, and other local businesses that complement your delivery operations in Dubai. When you work with local businesses they will give you new customers and help you discover useful business opportunities.
Conclusion
Starting a delivery business in the United Arab Emirates is an exciting opportunity to tap into a booming market with endless growth potential. The city offers ideal market conditions for success by providing a business-friendly environment, advanced infrastructure, and a high demand for delivery services. With proper planning, acquiring the necessary licenses, and effective marketing and branding, you can create a successful delivery business in the thriving business hub.
FAQs
How to start a delivery business in Dubai?
To start your delivery business in Dubai, choose the business structure and location and register your company with DED or relevant authority. Obtain the necessary licenses and partner with a reputable logistics provider to ensure reliable delivery services in Dubai.
Which documents are required to get a delivery license in Dubai?
You need to submit preliminary approval of the licensing authorities, copies of the partners’ passports, Emirates ID of citizen partners, valid visit or residence visa for partners, and NOC of the sponsor for delivery business setup in Dubai. The proof of address such as electricity bills or tenancy contracts of the sponsors are also required for company registration.
What is the cost of delivery business license in Dubai?
The cost of a delivery license in Dubai can vary based on various factors such as business type, size, business model and structure, legal requirements, and jurisdiction. The estimated delivery license cost in Dubai typically falls between AED 6,500* and AED 10,000*.
What are the requirements to start a food delivery service in Dubai?
To start a food delivery service in the booming food delivery industry of Dubai, you need to obtain necessary licenses and ensure compliance with food safety and handling regulations.
