The logistics industry in the United Arab Emirates (UAE) is undergoing a digital revolution. From Dubai’s smart ports to Abu Dhabi’s tech-driven warehouses, companies across the region are investing heavily in automation, tracking, and end-to-end visibility. Yet one of the most common questions business owners and project managers still ask is:
“How much does logistics software actually cost to build in the UAE?”
The answer isn’t straightforward. Development costs depend on scope, technology stack, integrations, and compliance requirements, and those vary significantly across industries, Emirates, and operational models. A last-mile delivery startup, for instance, might need a lightweight fleet-tracking app, while a freight forwarder in JAFZA may require a full-scale ERP-integrated logistics suite with IoT support.
This guide breaks down every cost element from discovery and design to infrastructure, localization, and maintenance, so you can make informed budgeting decisions. Drawing from UAE-specific market data, developer rate benchmarks, and real-world project experience, it aims to answer three key questions:
- What factors determine logistics software cost in the UAE?
- What are realistic price ranges for different project scales?
- How can you optimize cost without compromising quality or compliance?
By the end, you’ll have a clear picture of where your money goes and how to plan a logistics software project that’s both scalable and cost-efficient in the UAE’s competitive logistics landscape.
Why UAE Firms Are Investing Now
The United Arab Emirates (UAE) has emerged as a logistics powerhouse over the past decade, and for businesses considering logistics software development, this rapid evolution presents both an imperative and an opportunity. As you plot your own logistics software initiative in the UAE, understanding this backdrop is key to aligning budget, scope, and timing with market reality.
Strategic geography + world-class infrastructure
The UAE sits at the crossroads of Asia, Europe, and Africa, which means more than just a favourable location, it means your logistics software has to support complex flows: import, re-export, multi-modal transport, bonded warehouses, and cross-border trade. According to recent market data, the UAE logistics market generated USD 169.7 billion in 2024 and is forecast to reach USD 241.6 billion by 2030, growing at a CAGR of roughly 6.1%.
Grand View Research
This kind of scale means logistics providers cannot rely on manual or semi-automated systems alone software is rapidly becoming the operational backbone for competitive advantage.
E-commerce, free zones & growth in demand
The e-commerce boom is putting further pressure on logistics: rising volumes, tighter delivery windows, and higher customer expectations. In the UAE, for example, industrial and logistics demand in Dubai surged by 225% in 2024, reaching 40.6 million sq ft of occupancy, driving rents higher and vacancy lower.
Zawya
Meanwhile, the prevalence of free-zones and business-friendly regulation (such as 100% foreign ownership in many zones) means logistics companies are not only expanding but digitising. Free-zone regimes allow companies to leverage warehousing, bonded facilities, and export-oriented trade flows with fewer burdens.
This twin effect, higher demand + favourable business environment, means logistics firms in the UAE must invest in software to scale, automate, and differentiate.
The “why cost matters” for your software build
When the logistics industry is under pressure to reduce lead times, increase asset utilisation, and deliver real-time visibility, every inefficiency becomes a cost. For UAE companies operating large fleets, multiple warehouses, cross-Emirate flows, or global re-exports, the cost of lagging software is high: manual tracking, disconnected systems, and limited analytics. By contrast, a well-designed logistics platform becomes a competitive asset: faster deliveries, lower overhead, data-driven optimisation.
Logistics Software Development Cost Snapshot (2025 UAE)
If you only need the short answer, here it is:
Building production-grade logistics software in the UAE typically costs anywhere between AED 180 000 – 2 000 000+ (≈ USD 49 000 – 545 000+), depending on your project’s scope, team structure, and compliance requirements.
The table below outlines average 2025 ranges based on real market benchmarks, hybrid-team delivery, and typical features observed across UAE logistics projects.
(Exchange rate used ≈ AED 3.67 = USD 1)
| Project Tier | Typical Scope / Use Case | Estimated Cost (AED) | Approx. USD Equivalent | Team Size | Timeline |
|---|---|---|---|---|---|
| MVP / Startup | Core order-to-dispatch, driver app, real-time tracking, admin panel, basic analytics | 180 000 – 350 000 | 49 000 – 95 000 | 5 – 7 | 3 – 4 months |
| Mid-Tier / Scaling | Fleet + warehouse mgmt, route optimisation, multi-user portals, KPI dashboards, cloud hosting | 350 000 – 800 000 | 95 000 – 218 000 | 7 – 12 | 5 – 8 months |
| Enterprise Suite | Multi-warehouse, ERP/TMS integrations, IoT & AI predictive analytics, advanced BI, Arabic/English UI, high security standards | 800 000 – 2 000 000 + | 218 000 – 545 000 + | 10 – 20 + | 8 – 14 + months |
Key takeaways
- AED 180 k–350 k: Lean MVPs for startups proving last-mile or delivery concepts.
- AED 350 k–800 k: Typical for small-to-mid logistics firms expanding region-wide.
- AED 800 k–2 M +: Enterprise ecosystems integrating multiple warehouses and fleets across Emirates.
- Annual maintenance: Expect ~ 12–18 % of initial build cost for hosting, updates, and support.
- Timelines: 3–4 months (MVP) → 8–14 + months (enterprise).
Methodology & Assumptions
Understanding how these cost estimates are derived is crucial for credibility and budgeting accuracy. The following methodology outlines the data sources, pricing logic, and assumptions behind the UAE logistics software cost breakdowns used throughout this guide.
Pricing Model Used
The cost figures follow a bottom-up “feature × effort × rate” model, adjusted for UAE market realities.
| Parameter | Description |
|---|---|
| Feature complexity | Simple (1–2 sprints) → Moderate (3–5 sprints) → Complex (6 + sprints) |
| Effort estimation | Based on typical sprint durations (2 weeks avg) × team composition |
| Rate basis | AED/hour rates from UAE onshore, hybrid, and offshore models |
| Overheads | 10–15 % allocation for PM, QA automation, DevOps, and UX iteration |
| Contingency | 8–10 % buffer for integration variance and change requests |
Project Type Normalization
To maintain consistency across comparisons:
MVP = minimum viable product with core tracking and dispatch.
Mid-tier = multi-module system (fleet + WMS + BI dashboard).
Enterprise = multi-warehouse ecosystem with ERP + IoT integrations + governance modules.
Delivery & Team Structure
Most UAE projects adopt a hybrid delivery model, which balances quality and cost:
- Local resources (UAE) → Product Manager, Solution Architect, and Client Success Lead.
- Offshore team (India / Eastern Europe) → Developers, QA, Design.
- Average blended rate: AED 170 – 260 / hour, ~30–40 % lower than full onshore teams.
Limitations & Rounding RulesLimitations & Rounding Rules
- All cost bands are rounded to the nearest AED 10,000 for readability.
- Prices exclude taxes (VAT) and licensing fees.
- IoT hardware, 3PL integration fees, and third-party API usage costs are estimated separately in later sections.
- Market conditions (developer availability, inflation, exchange rate fluctuation) can cause ±10–15 % variance.
Validation Approach
To ensure practical relevance, these estimates were cross-checked against:
- Past UAE project RFP responses (anonymous, internal benchmarks).
- Vendor quotes from Dubai Silicon Oasis and Abu Dhabi free zone software consultants. sourcebracket–vendorquoteaveragesheet2024.
- Published case studies of GCC logistics digitalisation programs by PwC and BCG. sourcebracket–BCGlogisticsdigitalreportMENAsource bracket – BCG logistics digital report MENAsourcebracket–BCGlogisticsdigitalreportMENA
Key Cost Drivers in the UAE
The cost of logistics software development in the UAE depends on a complex interplay of technical, operational, and regulatory factors.
While global cost principles apply everywhere, certain elements such as free-zone compliance, bilingual UI design, and cloud-region constraints are unique to the UAE market.
Below are the seven primary cost drivers shaping project budgets in 2025, with notes on their typical impact levels.
1. Feature Depth & Functional Scope (Impact: Very High)
Every feature you add multiplies design, backend, and testing workloads.
For instance:
| Module | Adds to Cost Because … |
|---|---|
| Fleet Management | Requires telematics integration, driver hierarchy, vehicle lifecycle tracking |
| Warehouse Management | Adds complex inventory logic, barcode/QR workflows, and real-time stock sync |
| Route Optimization | Demands advanced algorithm development or licensing third-party APIs |
| IoT Sensors & Cold Chain | Needs device calibration, message queues, and 24 × 7 data ingestion |
| Customer Portal + BI Dashboard | Doubles front-end work + reporting pipelines |
2. Integrations & Ecosystem Fit 🔗 (Impact: High)
The UAE’s logistics sector relies heavily on interconnected systems: ERP (SAP, Oracle, Tally), customs APIs, carrier networks, and payment gateways.
Each integration affects both time and risk, especially when legacy systems lack modern APIs.
Common examples:
- ERP integration – 1 to 2 sprints per interface (data mapping + testing).
- Map & traffic API – Google Maps UAE or Here Technologies pricing tiers.
- Messaging – WhatsApp Business API or Twilio UAE BSP (~AED 0.15–0.25 per message).
- IoT gateway – integration to AWS IoT Core (ME region) or Azure IoT Hub.
3. Platform Choices & Technology Stack (Impact: Medium–High)
Deciding whether to build native apps or a cross-platform solution (Flutter, React Native) has both cost and time trade-offs:
| Platform Strategy | Pros | Cons / Cost Impact |
|---|---|---|
| Cross-Platform (Flutter/React Native) | 1 codebase = faster MVP (20–30 % less cost) | Slightly lower native performance |
| Dual Native (iOS + Android) | Best UX + device integration | 1.5–2× engineering cost |
| Web Only (Responsive) | Lowest cost entry | Limits mobile UX for drivers |
| Microservices Architecture | Enables scaling modules independently | Adds DevOps + cloud complexity (~10–15 % extra) |
Backend tech trends in the UAE (2025): Node.js + NestJS / Python FastAPI / .NET Core, with PostgreSQL + Redis.
Front-end: React or Angular.
Infra: AWS ME (UAE), Azure UAE North, or Oracle Cloud Dubai Region.
4. Data Residency & Cloud Region Compliance ☁️ (Impact: Medium)
UAE’s data-protection framework and certain free-zone mandates require local or GCC-based data storage.
Hosting in AWS UAE (ME-Central) or Azure UAE North can raise infrastructure costs by 15 – 25 % compared with global regions, due to localisation and energy tariffs.
- Private VPCs + dedicated bandwidth
- Disaster Recovery across regions (Abu Dhabi ↔ Dubai)
- 99.9 % uptime SLA monitoring
- Managed security services (WAF, SOC2, ISO 27001)
5. Compliance, Licensing & Regulatory Framework 📜 (Impact: Medium)
Building for UAE logistics means considering:
- VAT e-invoicing & audit trail compliance (FTA regulations)
- Customs & EDI formats for free-zones (JAFZA, KIZAD)
- ESMA and TASNEEF quality standards for transport and warehousing
- Arabic language support (RTL UI) and bilingual documentation
Each of these adds consultation and QA overhead.
E-invoicing compliance alone can require AED 15 000 – 40 000 in development + testing.
6. Team Model & Labour Rates (Impact: High)
Labour cost differentials are stark:
| Model | Team Location | Hourly Rate (AED) | Typical Saving vs Full Onshore |
|---|---|---|---|
| Onshore (UAE only) | Dubai / Abu Dhabi | 250 – 400 / hr | – |
| Hybrid (Local PM + Offshore Dev) | UAE + India/Eastern Europe | 170 – 260 / hr | ≈ 30 – 40 % |
| Fully Offshore | India / Philippines / Eastern Europe | 120 – 200 / hr | ≈ 50 – 60 % |
7. Non-Functional Requirements (NFRs) 🔒 (Impact: Medium–High)
Beyond visible features, the software must meet strict service-level objectives:
- Performance: handle peak delivery load with < 2s API latency.
- Scalability: elastic cloud auto-scaling (+5–10 % infra cost).
- Security: role-based access, encryption at rest & in transit, auditing.
- Reliability: HA clusters + active monitoring.
Each NFR increases DevOps and testing time.
Skipping them may cut 10 % off the bill today but add 50 % in future rework and re-certification.
| Driver | Typical Cost Impact | Notes / Risks if Ignored |
|---|---|---|
| Feature depth & scope | ⭐⭐⭐⭐ (very high) | Under-scoping → missing critical functions |
| Integrations & ecosystem | ⭐⭐⭐⭐ (high) | Cost creep from legacy systems & API fees |
| Platform choice / tech stack | ⭐⭐⭐ (med–high) | Wrong choice = duplicate code / rebuild later |
| Data residency / cloud | ⭐⭐⭐ (medium) | May breach UAE data laws if ignored |
| Compliance & licensing | ⭐⭐⭐ (medium) | Delays due to VAT or free-zone audits |
| Team model / rates | ⭐⭐⭐⭐ (high) | Labour rate variance drives budget spread |
| NFRs (performance, security) | ⭐⭐⭐ (med–high) | Rework costs > initial build if skipped |
Cost by Complexity Tier (MVP → Enterprise)
Once you understand what drives cost, the next step is to see how those drivers play out across different project complexities.
In the UAE, logistics software budgets typically cluster into three tiers MVP, Mid-Tier, and Enterprise each defined by scope, integration depth, and compliance load.
The estimates below reflect 2025 blended UAE market rates for hybrid delivery (local PM + offshore dev) and include standard security, QA, and deployment costs.
Tier 1 – MVP (Startup-Level Build)
Purpose:
Validate a logistics model (e.g., delivery or warehouse pilot) with real users before scaling.
Scope Includes:
- Admin dashboard + role management
- Order intake, assignment, and tracking
- Driver mobile app (cross-platform)
- Live GPS tracking, notifications
- Basic analytics & export reports
- Cloud hosting in UAE region
Typical cost: AED 180 000 – 350 000 (USD 49 000 – 95 000)
Timeline: ≈ 3 – 4 months
Team: PM · UX/UI · 2 Developers · QA · DevOps
Ideal for: Startups and SMEs proving a concept with limited routes or fleet.
Tier 2 – Mid-Tier (System Expansion & Multi-Module)
Purpose:
Scale operations across multiple warehouses or Emirates; improve visibility & control.
Scope Includes:
- All MVP features + Fleet & Warehouse Management
- Route optimization and trip planning
- Customer & driver portals
- KPI dashboard + report automation
- Integration with ERP / accounting / payment gateway
- Bilingual (Arabic + English) UI
- Security / audit logs / API authentication
Tier 3 – Enterprise (Integrated Logistics Ecosystem)
Purpose:
Digitize end-to-end logistics across geographies; integrate complex systems under strict SLAs.
Scope Includes:
- IoT / telematics integration
- Multi-warehouse inventory sync
- AI-based demand forecasting & predictive maintenance
- ERP/TMS/CRM integrations (SAP, Oracle, Dynamics)
- Advanced BI with data warehouse
- Custom roles, workflow automation, compliance reporting
Typical cost: AED 800 000 – 2 000 000 + (USD 218 000 – 545 000 +)
Timeline: ≈ 8 – 14 + months
| Tier | Typical Scope Summary | Cost (AED) | USD ≈ | Team Size | Timeline (weeks) |
|---|---|---|---|---|---|
| MVP / Startup | Core order → dispatch → tracking + basic analytics | 180 k – 350 k | 49 k – 95 k | 5 – 7 | 12 – 16 |
| Mid-Tier / Scaling | Adds fleet + WMS + dashboards + ERP links | 350 k – 800 k | 95 k – 218 k | 7 – 12 | 20 – 32 |
| Enterprise Suite | Multi-warehouse + IoT + AI/ERP + BI ecosystem | 800 k – 2 M + | 218 k – 545 k + | 10 – 20 + | 32 – 56 + |
Phase-by-Phase Budget Allocation
Every successful logistics-software project in the UAE passes through six phases: Discovery → Design → Development → QA → Launch → Maintenance.
Knowing what share of the total budget each phase consumes helps you allocate resources wisely and prevents cost shocks midway.
Why this matters
Most UAE projects go over budget not because of mis-scoped features but because teams underestimate time in discovery, testing, and post-launch support.
A transparent phase allocation ensures cash flow matches delivery milestones and investor reporting.
Typical Budget Distribution (Percent of Total Project Cost)
| Phase | % of Total Budget | Typical Deliverables / Activities | Who’s Involved |
|---|---|---|---|
| 1. Product Discovery & Planning | 8 – 12 % | Market study, process mapping, requirement workshops, feature prioritisation, risk register | PM · BA · Solution Architect |
| 2. UX / UI Design & Prototyping | 10 – 18 % | Wireframes, interactive prototype, user flows, brand integration (Arabic/English layouts) | UX/UI Designer · Stakeholders |
| 3. Engineering (Frontend + Backend + Mobile) | 45 – 55 % | Core build, APIs, integrations, security, DevOps, unit tests | Tech Leads · Developers · DevOps |
| 4. Quality Assurance & Security Testing | 8 – 12 % | Functional, performance & load tests, UAT support, vulnerability scans | QA Team · Security Analyst |
| 5. Go-Live & Change Management | 4 – 8 % | UAT sign-off, data migration, training, hyper-care, launch events | PM · Client Ops Team |
| 6. Maintenance & Enhancements (Year 1) | 12 – 18 % | SLA support, monitoring, minor features, cloud ops, patches | Support Team · DevOps · QA |
What these numbers mean in practice
- AED 50 000 on discovery
- AED 70 000 on UX/UI
- AED 250 000 on engineering
- AED 50 000 on QA
- AED 25 000 on launch
- AED 55 000–90 000 on maintenance (Y1)
Feature-Level Cost Matrix (2025 UAE Pricing)
While total project cost helps with high-level planning, most decision-makers in the UAE want to know that “How much will each feature actually cost me?”
The following breakdown shows typical feature-wise development ranges in AED, based on UAE 2025 blended market rates (hybrid model local PM + offshore devs).
All numbers assume cloud-native architecture, bilingual UX, and standard security compliance.
| Feature / Module | Description / Key Functions | Typical Cost (AED) | Relative Effort Share (% of total) |
|---|---|---|---|
| Admin Panel & RBAC | Role-based access control, multi-tenant dashboard for users & permissions | 80 000 – 180 000 | 6 – 10 % |
| Order Intake & Processing | Manual entry, CSV upload, API integration with ERP / e-commerce platforms | 60 000 – 150 000 | 5 – 8 % |
| Dispatch & Trip Management | Order assignment, vehicle routing, status flows, proof of delivery | 120 000 – 250 000 | 10 – 15 % |
| Driver Mobile App | Cross-platform (Flutter / React Native) app for trip updates & task tracking | 110 000 – 250 000 | 10 – 14 % |
| Live Tracking & Map Integration | Real-time GPS tracking via Google / Here APIs, geofencing alerts | 80 000 – 180 000 | 8 – 12 % |
| Route Optimization | Shipment status, invoices, and support tickets for clients | 120 000 – 300 000 | 10 – 14 % |
| Fleet Management | Vehicle registry, maintenance logs, fuel & usage tracking with telemetry | 150 000 – 350 000 | 12 – 16 % |
| Warehouse Management (WMS) | Receiving, put-away, picking, cycle count, bin location logic | 200 000 – 500 000 | 15 – 20 % |
| Customer Portal | Shipment status, invoices, support tickets for clients | 80 000 – 180 000 | 5 – 8 % |
| Analytics & BI Dashboard | KPIs, reports, data visualization, export to Excel / PDF | 100 000 – 250 000 | 8 – 12 % |
| IoT / Telematics Integration | Connect BLE, RFID or sensor data to cloud for realtime monitoring | 150 000 – 400 000 | 12 – 18 % |
| ERP / TMS Integration | SAP, Oracle, MS Dynamics, Zoho Books etc. (per system) | 80 000 – 200 000 | 6 – 10 % |
| Payment Gateway & VAT Invoicing | UAE PG integration, tax computation, receipt automation | 20 000 – 60 000 | 3 – 6 % |
| Notifications & Alerts | SMS, Email, WhatsApp templates, Push service | 25 000 – 60 000 | 3 – 5 % |
| Auditing & Logs | System activity logs, tamper-proof records for VAT audit trail | 30 000 – 70 000 | 2 – 4 % |
Know Your UAE Project Cost
Get a Cost EstimateOptional Add-On Features (Beyond Core)
| Add-On | When to Include | Extra Cost (AED) |
|---|---|---|
| AI-Powered ETA Prediction | Large fleet / variable traffic scenarios | 40 000 – 100 000 |
| Drone / Robotics Integration | Smart warehouse or automated inventory flows | 60 000 – 150 000 |
| 3rd-Party Carrier APIs (FedEx, Aramex) | To extend shipping visibility | 25 000 – 70 000 |
| Blockchain Audit Trail | For high-value or customs-sensitive goods | 70 000 – 180 000 |
| Advanced Analytics (Data Warehouse) | Enterprise BI / multi-country ops | 120 000 – 300 000 |
Effort Distribution Example
In a typical AED 600 000 mid-tier build, module cost proportions often look like this:
- 25 % → Fleet & Warehouse Management
- 20 % → Mobile Apps + Tracking
- 15 % → Integrations (ERP, Maps, Messaging)
- 10 % → Analytics / Reports
- 10 % → Admin + RBAC
- 20 % → QA + Security + Infrastructure
Onshore vs Offshore Rates in the UAE
One of the largest variables in logistics-software development cost isn’t technology it’s where your engineers sit.
The UAE’s cosmopolitan talent pool offers multiple delivery models, from premium in-country teams to hybrid and fully-offshore setups.
Choosing the right model can alter your budget by as much as 40–60 percent without compromising quality.
Onshore Teams (UAE – based)
Developers, designers, and architects located within the Emirates often in Dubai Internet City, Abu Dhabi Global Market, or Sharjah Media City.
Typical rates (AED / hour):
| Role | Avg. Range (AED / hr) | Monthly Cost (AED, approx.) |
|---|---|---|
| Solution Architect | 300 – 500 | 48 000 – 80 000 |
| Senior Developer | 220 – 350 | 35 000 – 56 000 |
| Mid-level Developer | 150 – 220 | 25 000 – 35 000 |
| UI / UX Designer | 150 – 250 | 25 000 – 40 000 |
| QA Engineer | 120 – 200 | 20 000 – 32 000 |
| DevOps / Cloud Engineer | 200 – 350 | 32 000 – 56 000 |
Pros:
- Seamless communication & cultural alignment.
- Easier compliance (data residency, VAT).
- Preferred by government / semi-government tenders.
Cons:
- Highest cost bracket.
- Smaller talent pool for niche stacks.
2. Hybrid Model (Local PM + Offshore Dev Team)
Description
Core leadership and client liaison remain onshore (PM, Architect), while dev/QA/design teams operate remotely usually from India, Pakistan, Eastern Europe, or the Philippines.
Typical blended rates: AED 170 – 260 / hour
Ideal for: Mid-tier or enterprise builds requiring cost efficiency + UAE oversight.
Advantages:
- 30–40 % cheaper than full onshore delivery.
- Real-time collaboration via overlapping time zones.
- Maintains local presence for compliance and demos
Challenges:
- Requires strong sprint governance & documentation.
- Data-transfer policies (VPN / secure repos) must follow UAE DP Law.
3. Fully Offshore Teams
Description:
All roles (PM, Dev, QA) located outside the UAE, often through outsourcing agencies.
Typical rates: AED 120 – 200 / hour
Pros:
Lowest cost savings up to 55 – 60 %.
Access to large global talent pools (India, Eastern Europe).
Cons:
- Communication lag (2–3 hr overlap only).
- Harder to enforce SLA / IP protection if contracts lack UAE jurisdiction.
- Possible issues with data residency for regulated logistics clients.
4. Comparison at a Glance
| Model | Hourly Rate (AED) | Relative Cost vs Onshore | Best For | Data Compliance Risk |
|---|---|---|---|---|
| Onshore (UAE only) | 250 – 400 | 100 % baseline | Government / enterprise projects | Low |
| Hybrid (UAE + Offshore) | 170 – 260 | ≈ 60–70 % of onshore | SMEs / fast-growing 3PLs | Medium |
| Fully Offshore | 120 – 200 | ≈ 40–50 % of onshore | Startups / pilot projects | High |
5. Cost Impact on Overall Budget
For a mid-tier project (~ AED 600 000 hybrid):
- Onshore delivery would cost ≈ AED 850 000 – 900 000.
- Fully offshore delivery might cost ≈ AED 400 000 – 450 000.
- Hybrid remains the sweet spot between control and cost saving.
6. Legal and Contractual Notes
- Always sign NDAs and IP assignment agreements under UAE law.
- Ensure data storage and access policies follow UAE Data Protection Regulation (2022).
- When outsourcing, request proof of developer certifications and SLA track records.
Cloud, Infrastructure & Ongoing Costs (Year 1 Projection)
Launching your logistics platform is just the start.
The moment your app goes live, monthly operational costs begin to accumulate, and if you don’t model them early, the “maintenance phase” can quietly consume 15–25 % of your annual IT budget.
Below is a breakdown of the typical first-year infrastructure and recurring costs for a mid-tier logistics system hosted in UAE cloud regions.
1. Core Cloud Infrastructure
| Item | Description / Services | Monthly Cost (AED) | Notes / Source Placeholder |
|---|---|---|---|
| Compute + Databases | EC2 / Azure VMs, managed PostgreSQL, auto-scaling group | 3 000 – 12 000 | AWS UAE (ME-Central) / Azure UAE North pricing |
| Object Storage | S3 / Blob Storage for invoices, POD images, manifests | 300 – 2 000 | Usage-based; retention 30–90 days |
| Load Balancer & CDN | CloudFront / Azure FrontDoor for traffic optimisation | 400 – 1 500 | Depends on bandwidth (~1–3 TB / mo) |
| DNS + SSL + Monitoring | Route 53, Let’s Encrypt, CloudWatch, Grafana | 200 – 800 | Basic ops monitoring |
| Managed Queue / Cache | SQS, Redis, RabbitMQ Cluster | 800 – 3 000 | Event-driven architecture |
| Security + Backup Services | WAF, daily snapshots, DR copy to Abu Dhabi region | 500 – 3 000 | 99.9 % uptime target |
2. API & Integration Expenses
| Integration / Service | Basis of Charge | Monthly Cost (AED) | Notes / Source |
|---|---|---|---|
| Google / Here Maps API | Usage-based (5 000–25 000 calls / day) | 500 – 6 000 + | [source – Google Maps Platform Pricing UAE] |
| WhatsApp / SMS Notifications | Per message rate AED 0.15–0.25 | 500 – 5 000 + | Twilio / 360Dialog UAE BSP |
| Email (Transactional) | Up to 100 k emails / mo | 150 – 600 | AWS SES / SendGrid |
| Payment Gateway Fees | Per txn 1.9 – 2.5 % | Variable | Network Intl / PayTabs UAE |
| IoT Telemetry (If Used) | Sensor messages → IoT Hub | 300 – 1 500 | Azure IoT Hub ME North |
Questions about integrations or APIs?
Talk to a Project Expert3. Support & Maintenance Contracts
| Service | Frequency / SLA | Typical Cost | Comment |
|---|---|---|---|
| L2 / L3 Support | Business-hours or 24×7 | 10 – 15 % of build cost / year | Bug fixes, minor features |
| Change Requests / Feature Enhancements | Quarterly sprints | 5 – 8 % of build cost / year | Scope evolution |
| Cloud Ops / DevOps Retainer | Monthly contract | AED 8 000 – 15 000 / mo | Monitoring, CI/CD updates |
| Security Audits / Pen-Testing | Twice per year | AED 20 000 – 40 000 | Mandatory for enterprise clients |
4. Total Estimated Monthly Opex
| Company Size / Setup | Total Monthly Opex (AED) | Annual AED (approx.) | % of Build Cost |
|---|---|---|---|
| Startup MVP | 5 000 – 10 000 | 60 000 – 120 000 | 12 – 15 % |
| Mid-Tier | 10 000 – 20 000 | 120 000 – 240 000 | 15 – 18 % |
| Enterprise | 25 000 – 40 000 + | 300 000 – 480 000 + | 18 – 22 % |
Regulations, VAT & Localization (What Adds Cost in the UAE)
Logistics software built for the UAE cannot just be “feature-rich”. it must also comply with local financial, data-protection, and language requirements.
Ignoring these early on is one of the main reasons projects face approval delays and rework bills of AED 40 000 – 100 000 after launch.
1. VAT & E-Invoicing Compliance (FTA Guidelines)
The Federal Tax Authority (FTA) mandates VAT-compliant invoicing for all B2B/B2C logistics operations.
To ensure compliance, your software must:
- Generate VAT-ready invoices (5 % standard rate) with sequential numbering.
- Maintain digital audit trail logs of edits and refunds.
- Support e-invoicing formats (XML / UBL) compatible with FTA filing.
- Store records for 5 years minimum (FTA Article 78).
| Requirement | What It Means for Dev Teams | Added Cost (AED) |
|---|---|---|
| VAT calculation engine | Custom tax module / integration with ERP tax tables | 8 000 – 20 000 |
| E-invoicing XML schema validation | PDF + XML generation, API submission test | 10 000 – 25 000 |
| Audit log and tamper protection | Immutable event storage, timestamps, role tracking | 10 000 – 30 000 |
2. Data Protection & Residency Requirements
The UAE Data Protection Law (No. 45 of 2021) and free-zone regulations (JAFZA, ADGM, DIFC) require that personal and logistics data be stored within UAE or approved GCC regions.
This impacts cloud and infrastructure decisions.
Implementation implications:
- Use AWS UAE (ME-Central) or Azure UAE North regions only.
- Enforce encryption at rest & in transit (AES-256 / TLS 1.2 +).
- Implement user consent flows and data-access logs.
- Add DR replication within GCC instead of Europe / US.
3. Free-Zone Customs & EDI Integration
For companies operating in JAFZA, KIZAD, DWC or Sharjah Free Zone, integration with customs and trade systems is often mandatory.
Typical requirements:
- EDI (UN/EDIFACT) formats for export & import declarations.
- HS Code validation with customs APIs.
- Automated manifest generation and e-Gate submission.
| Integration Type | Avg. Effort (Sprints) | Extra Cost (AED) |
|---|---|---|
| EDI (Customs API)** | 1 – 2 | 15 000 – 40 000 |
| Manifest Automation | 2 – 3 | 20 000 – 50 000 |
4. Arabic Localization & RTL User Interfaces
UAE law does not mandate Arabic interfaces for internal software, but customer-facing systems gain trust and usability when they are bilingual.
What it adds technically:
- Their current celeb blacklist backs up all of the above points too!
- Right-to-Left (RTL) layout support for Arabic.
- Dual font and string management in UI and DB.
- Language switcher with real-time reload.
| Localization Element | Added Cost (AED) | Time Impact (weeks) |
|---|---|---|
| Arabic Translation & Testing (~5 k words) | 5 000 – 12 000 | 1 – 2 |
| RTL Layout Conversion | 8 000 – 18 000 | 1 – 2 |
| Dual-Language CMS Setup | 6 000 – 15 000 | 1 – 2 |
5. Legal Disclosures & Audit Readiness
Enterprise clients (such as DP World or Abu Dhabi Ports) often require:
- Annual security audit (ISMS / ISO 27001).
- Access log export capability.
- Audit-ready reporting for FTA / Customs authorities.
Frequently Asked Questions (Cost, Time, Tech)
1. How much does it cost to build logistics software in the UAE?
The average logistics software development cost in the UAE ranges from AED 180 000 to 2 million + depending on scale, integrations, and compliance.
- Startup MVP: AED 180 000 – 350 000
- Mid-Tier / SME: AED 350 000 – 800 000
- Enterprise Suite: AED 800 000 – 2 million +
2. What factors influence logistics software cost the most?
The top five cost drivers are:
- Feature depth (Fleet + WMS + Analytics).
- Integrations (ERP, maps, messaging, payments).
- Team model (onshore vs hybrid vs offshore).
- Compliance (VAT, Data Protection Law, Arabic localization).
- Infrastructure (UAE-region cloud hosting).
- Each can shift the total budget by 10–25 %, so prioritizing scope early prevents overruns.
3. How long does it take to build logistics software in the UAE?
Development time depends on project tier:
- MVP: ≈ 3–4 months
- Mid-Tier: ≈ 5–8 months
- Enterprise: ≈ 8–14 + months
4. What technologies are commonly used in UAE logistics platforms?
Typical 2025 stacks include:
- Frontend: React / Angular
- Backend: Node.js (NestJS) / Python (FastAPI) / .NET Core
- Mobile: Flutter / React Native
- Database: PostgreSQL + Redis
- Infra: AWS UAE (ME-Central) / Azure UAE North
5. Is it mandatory to host logistics software within the UAE?
For government, semi-government, and regulated logistics operators, yes, data must remain within UAE or GCC-approved regions under the UAE Data Protection Law 2022.
Private companies may host globally, but most choose UAE regions for compliance and latency reasons.
6. What’s the minimum viable budget for a logistics startup in Dubai?
- Order management,
- Driver tracking app, and
- Basic analytics
can be achieved for ≈ AED 180 000 – 250 000 with hybrid delivery (local PM + offshore devs).
However, even MVPs require proper discovery, QA, and maintenance planning.
7. What are typical ongoing (monthly) costs after launch?
Expect AED 10 000 – 20 000 per month for:
- Cloud hosting,
- Maps & notification APIs,
- Maintenance & DevOps,
- Support SLA contracts.
For enterprise systems, Opex can reach AED 30 000 – 40 000 +
8. Do UAE logistics systems need Arabic interfaces?
Not legally mandatory, but highly recommended.
Most customer-facing portals are bilingual (Arabic + English) to build trust, especially in Dubai, Abu Dhabi, and Sharjah. Arabic UI adds ≈ 10–15 % to front-end cost.
9. How do I choose the right vendor or tech partner?
- Proven UAE logistics experience.
- Transparent hybrid rate model (onshore + offshore).
- Clear SLA and data-residency compliance.
- Ability to deliver Arabic / English UI.
10. Can I phase features to control cost?
Absolutely. Many UAE companies start with an MVP for dispatch + tracking, then add:
- Fleet management (Phase 2)
- Warehouse + BI dashboards (Phase 3), this phased rollout saves 20–30 % in upfront cost while delivering early ROI.
