Yes, 100% foreign ownership is now permitted for most transportation businesses in free zones, while mainland transportation companies can also have full foreign ownership under recent regulatory changes. However, certain specialized passenger transport categories may still have specific local partnership requirements. We structure your transportation business to maximize ownership control while ensuring full regulatory compliance based on your specific transportation category.
Transportation businesses must ensure all drivers hold appropriate UAE driving licenses for their vehicle categories, transportation authority permits, and driver authorization cards. Drivers typically need clean records, transportation-specific training, and regular medical examinations. For passenger services, drivers may require additional certifications in customer service and English language proficiency. We provide guidance on driver qualification management and can assist with processing driver permits.
The standard processing time ranges from 15-30 business days depending on the transportation category and fleet size. Simple transportation licenses with limited vehicles may process faster (15-20 days) while complex operations with large fleets may take 25-30 days due to additional vehicle inspections and safety reviews. Our expedited service typically reduces processing time by 20-35% through efficient documentation and proactive application management.
The total investment ranges from AED 25,000-75,000 depending on transportation category and fleet size. This includes license fees, initial approval costs, vehicle registration fees, and transportation permit charges. Additional costs include vehicle tracking system installation (AED 1,000-1,500 per vehicle), comprehensive commercial insurance (varies by fleet value), driver authorization cards (AED 300-500 per driver), and specialized transportation permits. We provide detailed cost breakdowns during our initial consultation.
Transportation businesses require comprehensive commercial vehicle insurance with higher coverage limits than personal vehicles. Passenger transport services need additional passenger liability coverage, while cargo transporters require goods-in-transit insurance. Transportation companies must also maintain general business liability insurance and, in many cases, professional indemnity coverage. We help secure appropriate insurance packages that meet regulatory requirements while offering competitive premiums.
A Transportation License can cover a wide range of activities including passenger transport (taxis, limousines, buses), cargo transportation, freight forwarding, logistics services, car rental operations, maritime transportation, heavy equipment transport, specialized vehicle leasing, and courier/delivery services. Each category has specific requirements regarding vehicle specifications, driver qualifications, and safety protocols. During our consultation, we identify the precise activity codes that align with your transportation business model.
Vehicle requirements vary by transportation category but generally include age restrictions (typically vehicles must be less than 5 years old), specific technical specifications, regular maintenance certification, and mandatory GPS tracking systems approved by the RTA. Passenger transport vehicles require additional features like vehicle identification signage, taxi meters (for public transport), and specific color schemes. We provide comprehensive guidance on vehicle acquisition or modification to meet these requirements.
Commercial transport licenses cover general cargo and passenger services with standard vehicles, while limousine licenses specifically authorize luxury passenger transportation with high-end vehicles meeting specific standards. Limousine services face stricter vehicle age restrictions (typically 2-3 years maximum), higher insurance requirements, and more rigorous driver qualification standards including language proficiency and customer service training. The application processes differ significantly, with limousine services requiring RTA pre-approval of all vehicle models.