What should I verify before buying a small logistics business in Dubai?
I am reviewing a small last-mile delivery business in Dubai. They have around 18 vans, 32 drivers, and several e-commerce clients. The seller says revenue is stable, but I am worried about trade license activity, RTA fines, driver visas, and whether Cash-on-Delivery money is being mixed with operating cash. What should I check before I move forward?
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Hey Omar, look closely at these before you sign anything. Small logistics setups here are a minefield for hidden fines. Check whether they have a mainland DET license if they deliver inside Dubai. A free zone setup alone can create problems for local distribution. Pull the RTA traffic file, check blocked files, outstanding fines, GPS compliance, driver visa status, MOHRE/WPS records, and any COD balances owed to clients. If a warehouse is included, check Ejari and Dubai Civil Defence renewal status before relying on the lease.
I looked at a similar delivery business last year. The biggest issue was not revenue; it was driver sponsorship. Several drivers were not properly under the company, and the buyer would have inherited the operational risk. Ask for the visa list before trusting the fleet numbers.
Ask for bank statements and COD reconciliation by client. If client money is sitting inside general operating cash, the revenue may look stronger than it really is. Also compare fuel, Salik, maintenance, and insurance costs against the number of active vehicles.