The e-commerce sector in the United Arab Emirates has grown significantly in recent years, also due to the COVID-19 pandemic. Further significant growth is expected in the future.
This development is driven, among other things, by excellent digital and logistics infrastructure, as well as by a number of business-friendly e-commerce initiatives launched by various local governments. Therefore, many companies are currently considering e-commerce business registration in UAE or expanding their existing distribution channels through an online presence.
Next, we will take a closer look at the details of this process.
E-Commerce Initiatives in the UAE
In the recent past, various authorities have launched e-commerce initiatives in the UAE.
Based on the vision to further strengthen, Dubai as a distribution hub, two free zones mainly focused on e-commerce have recently been established. These are Dubai CommerCity Free Zone, which is linked to the Dubai Airport Free Zone, and EZ Dubai in Dubai South.
In addition, some licensing authorities have either introduced completely new e-commerce licenses, such as DED Trader License issued by the Dubai Economic Development Department, or at least added new activities to their catalogs of licensed types of activities. For example, Dubai Diversified Commodity Exchange (DMCC) has introduced the licensing activity named eMarketplace Service Provider.
E-Commerce License in the UAE
Having a valid license is a prerequisite for any permanent business activity in the UAE. Therefore, a license is required even if the business activity is carried out wholly or partly on the Internet.
In addition to the license itself, it is necessary to obtain additional permits for e-commerce activities. For example, it is important to check whether a Certificate of No Objection must be obtained from the Telecommunications Regulatory Authority.
What to Consider When Setting up a New Business in the UAE
For companies that have not yet been established, it is necessary to first find out if it is acceptable to conduct the proposed business activities online in the UAE. If possible, different types of licenses and legal forms are available depending on the budget and the company’s medium- and long-term goals.
Where to Apply to Open a Company in the UAE
Dynasty Business Advisor has been working in the field of business consulting in Dubai and the other emirates for many years. The company’s specialists will help you:
- register a company in any free zone;
- collect the necessary package of documents;
- obtain licenses and other permits from the authorities;
- get a residence visa;
- as well as resolve any other issues related to your business in the UAE.