Hi Andrei, I'm Shreya Garg from DhanGuard.

For your business, the choice between Dubai Multi Commodities Centre vs Dubai South Free Zone should depend on the services you will actually provide, how closely you need to work with cargo infrastructure, and whether you plan to operate a warehouse in the future.

Based on your description, you may not need to own trucks or a warehouse initially. However, shipment coordination, freight forwarding, transport arrangement and logistics consultancy can be treated as different business activities for licensing purposes. Defining your service scope is the first step.

1. Do you need a logistics licence or a consultancy licence?

The correct licence depends on what your company will do in practice, not just the name you give the service.

For example:

• Logistics consultancy: Providing advice on supply chains, shipping processes or logistics planning may fit an approved consultancy activity.
• Shipment coordination: Arranging shipments, coordinating carriers and managing logistics transactions may require a specific approved activity.
• Freight forwarding: Organising cargo transportation, freight bookings or related forwarding services may require a more specific licence and potentially additional approvals.
• Warehousing: Storing goods or operating a warehouse introduces separate premises, operational and potentially customs-related requirements.

If your company will actively arrange shipments on behalf of customers, don't assume a general consultancy licence will cover those services. Submit a clear description of your activities to the relevant free-zone authority and confirm the licensing requirements before incorporation.

2. Dubai Multi Commodities Centre vs Dubai South Free Zone: Key differences

Note: This comparison is indicative. The precise activities permitted, workspace options, visa eligibility and facility availability must be confirmed with each authority. Location alone does not guarantee access to particular logistics facilities or warehouse space.

3. Does Dubai South offer practical advantages for freight and cargo businesses?

Potentially, yes. Dubai South's location near Al Maktoum International Airport and its wider logistics environment may be useful if your operations depend on air cargo, freight operators, distribution facilities or future warehousing.

For your business, this could matter if you expect to:

• Coordinate shipments involving air cargo.
• Meet freight forwarders and logistics partners regularly.
• Work with companies operating in nearby logistics facilities.
• Expand into storage, distribution or related services later.

However, proximity to the airport doesn't automatically mean your company can access every cargo facility or conduct every logistics activity. Your licence, commercial arrangements and any applicable operational permissions still matter.

If your work will mostly involve online communication, client reporting and coordinating third-party providers, you should also compare office costs and convenience. You may not need an airport-oriented location if your day-to-day work is primarily administrative.

4. Would choosing DMCC now complicate future warehouse expansion?

It could introduce additional steps, but it does not automatically make expansion impossible.

A warehouse-based operation is different from a small office coordinating shipments. Before committing to DMCC, establish whether your intended future model would involve:

• Renting storage space from a third-party logistics provider.
• Leasing and operating your own warehouse.
• Handling or distributing goods directly.
• Importing or exporting goods through the UAE.
• Providing customs-related or other specialised logistics services.

These models can have different licensing, facility and approval requirements.

If you only coordinate shipments and a third-party logistics company stores the goods, your requirements may be different from those of a business that leases and operates its own warehouse.

If warehousing is a realistic near-term plan, ask both free zones to confirm whether your initial licence can accommodate your intended future activities, what amendments might be required, and whether suitable facilities are available.

5. How should you compare office space, employee visas and costs?

For a small company with two employees, compare the full setup rather than focusing only on the advertised licence price.

Note: Costs depend on the chosen activity, company structure, workspace, visa allocation and applicable approvals. Request an itemised quotation showing first-year and renewal costs, inclusions, exclusions and any conditions.

You can review DhanGuard's business setup packages as a starting point, then request a quotation tailored to your specific logistics activities.

6. Which free zone would I shortlist for your business?

Based on the information you've provided, I would approach the decision this way:

• Shortlist Dubai South if you expect to work closely with cargo operators, air-freight providers and logistics facilities, or if warehousing and distribution are likely to become important parts of your business.
• Shortlist DMCC if your immediate focus is a small coordination or consultancy operation serving international clients, and you value its broader business ecosystem. Confirm that your exact logistics activities are permitted.
• Compare both carefully if you are still deciding whether you will remain a shipment coordinator or eventually become a freight-forwarding and warehousing operator.

Neither free zone is automatically the best choice for every logistics business. The right decision depends on your licensed activities, operational needs, customer locations and expansion plans.

My recommendation

Andrei, I would first define whether your company will simply advise on and coordinate logistics or actively arrange freight and forwarding services. Then ask DMCC and Dubai South to confirm the appropriate licence, office requirements and future expansion options in writing.

Given your interest in working with freight and cargo operators and potentially expanding into warehousing, Dubai South deserves particular consideration. But if you will mainly coordinate shipments remotely and rely on third-party logistics providers, compare the total cost and permitted activities before making your decision.

This approach should help you choose a structure that supports your business today without overlooking the requirements you may face as your logistics operations grow.

Best regards,
Shreya Garg
DhanGuard