Logistics Costs in the UAE
Customs duty
| Goods | Duty |
|---|---|
| Most goods | 5% of the CIF value |
| Alcohol | 50% |
| Cigarettes and tobacco | 100% |
| Loose diamonds | Exempt |
Source: Dubai Customs: Frequently asked questions1
Under the GCC customs union, the 5% duty on goods from outside the union is collected at the first point of entry into it.2
Rail freight
- Freight operations run across 11 terminals and four major ports.
- One freight train can replace up to 300 trucks on the road.
Source: Etihad Rail: The UAE's national rail project; Etihad Rail: Freight4,3
By early May 2026, Etihad Rail had carried 1.8 million tonnes of sulphur, more than 4 million tonnes of aggregates and over 129,000 containers that year.5
Trucking and storage
Diesel rose to AED 4.80 a litre in October 2026. Warehouse space in Dubai South rented for AED 55 per sq ft a year in H1 2026, and Grade A space in Al Quoz for AED 90.6,7
Freight forwarders quote trucking, port and clearance charges per shipment. Compare at least two quotes for the same route and goods.
Frequently Asked Questions
What is the customs duty in the UAE?
Most imports pay 5% of their CIF value, the GCC common tariff. Alcohol pays 50% and cigarettes and tobacco 100%. The duty is collected at the first point of entry into the GCC customs union.
Sources
- Dubai Customs: Frequently asked questions
- ICP: Customs union for GCC states
- Etihad Rail: Freight
- Etihad Rail: The UAE's national rail project
- WAM: Etihad Rail freight volumes in 2026
- WAM: UAE fuel prices for October 2026 announced
- Knight Frank: UAE Industrial and Logistics Market Review H1 2026
Figures checked 21 October 2026. Prepared by Invest-Emirates.ae for general information. It is not investment, tax or legal advice; please confirm details with a qualified adviser before acting.