As a global maritime hub, with a strategic location at the crossroads of several international trade routes, Dubai is an important port of call for thousands of ships, tankers and yachts. The city boasts several well-established ports, including Jebel Ali Port (one of the busiest sea ports in the world), Port Rashid and Dubai Drydocks. To support this thriving maritime industry, the city boasts a burgeoning ship chandler industry. Few cities can compete with Dubai if you’re considering setting up a ship chandler business but, if you’re unsure where to begin, this article will explain how to open a ship chandler business in Dubai.
What do ship chandlers in Dubai do?
Ship chandlers provide commodities to a ship that has docked in a port. This might include food, beverages and kitchen essentials, technical and engine supplies (such as spare parts and maintenance tools), medical and safety equipment, deck and cabin supplies or duty-free goods, like tobacco, for international crew and passengers.
How to open a ship chandlers business in Dubai: Step-by-step
If you’re considering setting up a ship chandlers business, we’ve broken down the process into five stages to give you an idea of what to expect along the way.
Step 1: Research
Too many businesses skip over this crucial step in a rush to build their business. Before you begin the application process, you need to conduct thorough market research to understand the demand, competition and regulations in Dubai. Identify your target market and map out the types of supplies and services you’ll offer. Work out a logical pricing structure and put together a comprehensive supply chain and logistics strategy. You will need to provide a business plan, which will not only support the license application process but will become the roadmap to success.
Step 2: Register your business
Next, you will need to register your business. The UAE has strict naming regulations, so ensure that the name you choose complies. Avoid any blasphemous or potentially offensive language, abbreviations or names that are too similar to existing businesses as this can hold up the process.
You will need to decide on a business structure at this point too. Options include LLC, Free Zone and mainland setups. If you’re unsure about which setup works best for your needs, our expert advisors are always on hand to help.
Step 3: Apply for your license
All businesses need a valid license to operate legally in the UAE. Trading activities require a commercial trade license. You will need to provide an accurate and completed application form, along with supporting documents such as passport copies, a business plan and proof of registry. You may also need to get additional approvals from authorities such as the Dubai Maritime City Authority (DMCA) and the Ports Authority.
Step 4: Set up your warehouse and logistics
An effective supply chain is crucial to the success of shipping chandler businesses. When choosing a location for your warehouse, choose a site near major ports to minimise transportation costs. You will also need to invest in a fleet of delivery vehicles (or partner with a logistics provider) and begin to build up your stock.
Step 5: Build relationships
Establishing connections with shipping companies, authorities and operators will help you to secure contracts. Build relationships with local and international suppliers to source the highest quality products, network at maritime events and remember to register as a vendor, as many first only use pre-approved vendors.
Benefits of starting a ship chandlers business in Dubai
Dubai’s strategic location and well-established maritime industry make it an ideal place to start a ship chandler business. Entrepreneurs can tap into a myriad of advantages including:
Business-friendly regulations
Dubai is known as one of the best places in the world to do business thanks to regulations and incentives such as 100% foreign ownership, significant tax exemptions and a streamlined licensing process.
High demand
The maritime sector is experiencing significant growth due to increasing global trade, imports and exports, and cruise tourism. Demand for ship supplies is consistently steady and predictable.
Advanced logistics and supply chain networks
Dubai boasts top-tier logistics providers and customs systems to streamline the process, reducing delays and costs. This is supported by world-class airports, systems and road networks.
Strategic location
Dubai is situated between Europe, Asia and Africa, and serves as an important refuelling and restocking stop for long-haul routes. The high traffic ensures a steady demand for ship chandlers.
Well-established maritime infrastructure
Given its status as a maritime hub, Dubai boasts world-class infrastructure, with modern ports, dry docks and facilities. The wide availability of warehouses and storage makes it easy to operate ship chandler businesses too.
Key ship chandlers in Dubai
Demand is high for ship chandlers in Dubai, but so is competition. To give you an idea of the sorts of businesses you might be competing with, here are three of the top ship chandlers in Dubai:
Gulf International Marine Services Co. (GIMSCO)
Established in 1990, GIMSCO serves all ports across the UAE and offers a wide range of services including provisions, technical stores and marine equipment.
Seven Seas Shipchandlers
Founded in 1986, Seven Seas Shipchandlers covers 600 ports across the world and offers general ship supplies, provisions and stores.
Adamallys LLC
Adamallys was founded in 1972 and specialises in technical ship supplies catering to a wide range of vessels across UAE ports and neighbouring countries.
How to scale a ship chandlers business in Dubai
Growing your ship chandlers business requires careful and strategic planning. Here are a few tactics to expand your business successfully:
Diversify your service and product offering
If you’re hoping to attract a wider client base, you might want to consider moving beyond traditional ship supplies. Routes you could consider include equipment repairs, technical support and even waste management.
Expand your network
The best way to ensure consistent growth is to secure long-term contracts with shipping companies, operators and port authorities. You could consider offering customised service packages or bulk order discounts to encourage repeat business. Make sure to attend key industry events to help establish valuable connections too.
Invest in advanced technologies
Ship chandlers that can guarantee fast, reliable services are in high demand. By investing in advanced inventory management systems, GPS-enabled tracking and partnerships with third-party logistics providers, you can ensure timely deliveries and increased business opportunities.
About Set Hub
Set Hub is a leading business setup consultancy in Dubai. With a team of over 80 members proficient in more than 23 languages, we offer a truly global perspective on local business. Our comprehensive suite of solutions includes everything from company formation and license applications to securing residence visas and office spaces. With Set Hub as your trusted partner, you can navigate the complexities of setting up a business for success easily and efficiently. Get in touch with us today to learn more about how we can help you set up your shipping chandler business in Dubai.
