Vitaliy Chiryassov on Building a Winning Logistics Business in the UAE
Building a thriving logistics business in the UAE requires a deep understanding of the market’s unique dynamics. The nation’s strategic location, coupled with its robust infrastructure and business-friendly policies, has positioned it as a global hub for trade and commerce. To explore this further, we spoke with Vitaliy Chiryassov, CEO of UPPERCASE and UPPERESTUP, two innovative firms transforming how businesses are set up and managed in the UAE. Vitaliy shares his insights on opportunities, challenges, and strategies for success in the UAE logistics sector.
In this interview, we discuss the current state and future prospects of the logistics industry in the United Arab Emirates with Vitaliy Chiryassov, CEO of UPPERCASE, an international consulting firm, and UPPERSETUP, a tech-driven project simplifying business registration and management in the UAE.
Vitaliy Chiryassov , What makes the logistics sector unique in the UAE?
The UAE’s logistics sector is unique because it combines strategic location with world-class infrastructure and business-friendly policies. The UAE sits right at the intersection of global trade routes, connecting Asia, Africa, and Europe. That geographical advantage is backed by infrastructure that actually meets the demands of global logistics, like Jebel Ali Port, which handles over 19 million containers a year, or Dubai International Airport, which moves millions of tons in air freight.
The government also makes logistics a priority, cutting red tape and offering incentives, especially in free zones where companies benefit from streamlined customs and tax advantages. The World Logistics Passport, for instance, reduces fees and processing times, which speeds up operations. This balance of location, infrastructure, and supportive policy makes the UAE an unparalleled logistics hub.
Vitaliy Chiryassov , Are there good business opportunities in this field?
Absolutely. Logistics in the UAE is growing fast, and it’s not slowing down. The country’s strategic location and extensive infrastructure create consistent demand for services across various segments — shipping, warehousing, and last-mile delivery, to name a few. What’s particularly valuable here is that the UAE isn’t just a logistics hub for goods moving in and out; it’s increasingly a center for e-commerce and high-value trade, which means there’s space for innovation.
Whether it’s implementing tech solutions to optimize supply chains or offering specialized logistics for sectors like healthcare or electronics, the demand is there. And with initiatives like the Etihad Rail and other infrastructure projects coming online, the logistics landscape is expanding even further. If you’re entering this market with a clear strategy, there’s a lot of potential for growth.
What challenges should entrepreneurs expect when launching a logistics company here?
The main challenge is understanding the regulatory landscape, which can get complicated if you’re new to the UAE market. Choosing the right type of company structure — mainland versus free zone — is critical because each has specific rules that affect your ability to operate outside the UAE or in specific regions.
Another challenge is selecting the right economic activity code; if it’s not an exact match for your operations, you could face compliance issues later on. Also, logistics is a competitive field here. Large international players are already well-established, so new companies need a clear differentiator, whether it’s in speed, cost, or specialized service.
Finally, there’s the need to stay up-to-date with frequent regulatory changes. The UAE government is continuously optimizing its logistics policies, which is great in the long run but requires companies to adapt quickly. Having local expertise or a strong partner can make a big difference in navigating these challenges effectively.
What licenses do you need to operate in the UAE logistics sector?
To operate a logistics business in the UAE, the basic requirement is a Trade License. If you’re setting up in the mainland, this license comes from the Department of Economic Development, but if you’re in a free zone, it’s issued by that zone’s authority. This license covers the essentials for logistics operations, like warehousing, transport, and freight forwarding.
Beyond the Trade License, additional licenses depend on your specific activities. For example, a Freight Forwarding and Customs Clearance License is mandatory if your business involves handling customs clearance or international shipments, and it’s issued by UAE Customs. For warehousing, a Warehouse License is necessary, which includes compliance with local safety and operational standards. In some cases, specialized approvals are also required — such as clearance from Civil Defense for hazardous materials or certification from the Food Control Department for food storage.
Each license has its own set of requirements, so knowing exactly what you’ll need for your operation is essential to avoid delays.
Vitaliy Chiryassov , Are there other key requirements to consider?
Yes, there are a few critical requirements that go beyond just licenses. First, your company’s office and warehouse facilities need to meet specific health and safety standards, especially if you’re handling sensitive or hazardous materials. For instance, Civil Defense has strict guidelines for storage and fire safety, and failure to meet these standards can delay your operations.
Of course, there’s the matter of hiring staff with the right certifications. For example, if you’re involved in customs clearance, some roles may require certified professionals familiar with UAE customs procedures. Ensuring you have a team that meets these qualifications from the start is key to keeping operations smooth and compliant.
Does the government offer any support programs for logistics businesses?
Yes, the UAE government has a few targeted programs and initiatives that support logistics companies, particularly small and medium enterprises (SMEs). The National SME Program, for example, is run by the Ministry of Economy and offers financial incentives, training, and strategic guidance for SMEs in logistics. It’s a practical resource for companies looking to scale and become competitive within the region.
There’s also a big push toward digital transformation in logistics. The Dubai 10x Initiative, managed by the Dubai Future Foundation, is working on AI-driven projects like the Dubai Blink platform, which streamlines B2B commerce for free zone businesses. The Dubai eCommerce Strategy is another important initiative, focused on making the UAE an e-commerce logistics hub by digitizing customs processes, reducing fees, and cutting operational costs by up to 20%.
Finally, the government has invested heavily in infrastructure — expanding ports, airports, and introducing the Etihad Rail network, which connects key logistics hubs across the UAE. This network supports high-volume trade and distribution, creating a solid foundation for businesses to operate efficiently and grow.
How can your company help entrepreneurs set up a logistics business?
One common challenge entrepreneurs face is figuring out the right operational structure — whether to set up on the mainland or in a free zone. Each option comes with its own regulations, and choosing the wrong one can limit your business’s reach or create compliance headaches later on. At UPPERESTUP, we have an smart algorithm assistant that solves this problem. For example, it can suggest the best location for you based on proximity to transport hubs or cost efficiency.
Our business dashboard keeps your applications organized and sends real-time updates, so you can track your company formation process real-time. We also provide tailored advice for complex scenarios — like getting a permit for hazardous materials or food storage.
One of the best features of UPPERESTUP is that it operates as a free service at its core, with a pay-as-you-go model.
The smart algorithm assistance is completely free and will always remain so. You can set up your company using just the smart assistant without spending a time. Of course, you’ll still need to cover any applicable fees, but if you find yourself needing additional support, you can easily bring on one of our expert consultants, which is a paid feature.
They can help with tasks like preparing documents or advising you on local regulations. When you’re done, you can switch back to the free smart assistance and request human support again whenever you need it. It’s a more affordable option that’s just as effective as traditional full-time consultancy. And not to brag, but our experts are among the best in the market!
What advice would you give to someone starting a logistics company in the UAE?
Focus on clarity in your business scope and precision in compliance. Logistics here is competitive and fast-moving; the more specific your business plan and licensing, the smoother your entry will be. Also, don’t overlook the value of local partnerships—they can open doors faster than going it alone. And finally, stay agile. The UAE logistics sector is constantly evolving, and adapting quickly to changes, especially in digital processes, is key to keeping your edge.