Dubai has always been a top choice for forwarding and a logistics company due to its strategic location, international land transportation, world-class infrastructure, and business-friendly policies. But as we approach 2025, is Dubai still the best place to set up or expand your forwarding company? Let’s explore the key factors that make Dubai a strong contender and the challenges you should consider.
Dubai: The Perfect Logistics Hub
Dubai is not just a city; it’s a gateway to global trade. Sitting at the crossroads of Europe, Asia, and Africa, the emirate provides unparalleled access to major international markets. The logistics sector in Dubai contributes significantly to the UAE’s GDP, and this trend is expected to continue in 2025.
According to the Dubai Chamber of Commerce, the logistics industry is projected to grow at an annual rate of 4.3%, driven by increased e-commerce, international trade, and investment in innovative logistics solutions. Dubai’s Jebel Ali Port, the largest seaport in the Middle East, handles over 19.3 million TEUs (twenty-foot equivalent units) annually, making it a powerhouse for global shipping and forwarding companies.
Cutting-Edge Infrastructure and Innovation
A key reason why Dubai is an attractive choice for a forwarding company is its world-class infrastructure. Dubai International Airport is one of the busiest cargo airports globally, handling approximately 1.81 million tonnes of cargo in 2023. With the upcoming expansions in the Al Maktoum International Airport, this number is expected to rise, further strengthening Dubai’s position as a logistics leader.
Dubai is also embracing technology to enhance logistics operations. The Dubai Logistics Corridor integrates sea, land, and air transport, allowing faster and more efficient movement of goods. Moreover, the Dubai Silk Road strategy aims to enhance connectivity between global markets through innovative logistics solutions.
Government Support and Business-Friendly Policies
The Dubai government continuously introduces initiatives to support logistics companies. One such initiative is the Commercial and Logistics Land Transport Strategy 2030, which aims to double the sector’s economic contribution from AED 8.5 billion to AED 16.8 billion. Policies such as 100% foreign ownership, tax incentives, and free zones like Dubai South and JAFZA make it easier for businesses to thrive.
The UAE Golden Visa program also attracts top logistics professionals and investors, ensuring a skilled workforce for companies looking to expand in the region.
Challenges to Consider
Despite its advantages, there are challenges that businesses must consider before setting up a forwarding company in Dubai. One key issue is the rising cost of industrial real estate. Demand for logistics and warehousing space has surged, increasing rental prices.
Moreover, global economic uncertainties and geopolitical risks, such as disruptions in the Red Sea and higher financing costs, can impact business operations. Due to these challenges, DP World, one of Dubai’s major logistics players, reported a 28% decline in annual profit in early 2025.
Conclusion
Dubai’s strategic location, cutting-edge infrastructure, and supportive government policies make it one of the best places for a forwarding company in 2025. While challenges like high rental costs and global uncertainties exist, the city’s ongoing investment in logistics, commitment to innovation, and strong trade networks make it a lucrative destination for companies looking to scale their operations in the global logistics market.
If you’re considering starting or expanding your forwarding company in Dubai, now is the time to leverage its world-class logistics ecosystem and position your business for long-term success.