When establishing a logistics business in the UAE, one of the first decisions to make is whether to set up in a free zone or on the mainland. Both options offer distinct advantages, and the right choice depends on your business model and growth plans.
Free zones are highly attractive for many logistics companies due to their numerous benefits, including tax exemptions, customs duties relief, and 100% foreign ownership. These zones are designed to attract international businesses, offering streamlined procedures and specialised infrastructure. However, businesses operating in free zones face restrictions on trading directly with the local UAE market, limiting their scope of operations.
On the other hand, mainland businesses benefit from unrestricted access to the local market, which can be a significant advantage for logistics companies aiming to cater to domestic clients. Mainland companies also have more flexibility in terms of business activities and geographical reach. However, they are subject to local regulations and require a local sponsor for foreign ownership.
SLA Logistics offers expert guidance to help businesses weigh the pros and cons of each option. By considering operational needs and long-term growth strategies, you can make an informed decision that supports your logistics business’s success in the UAE.