During the Covid epidemic, the online shopping trend grew at an unheard-of rate. Lockdowns were suddenly imposed all around the world, causing people’s movements to be restricted or halted entirely. Many companies hastened to develop an online counterpart to their physical locations. While companies which had the vision and desire to research the eCommerce environment beforehand witnessed an exponential increase in their profit margins. Start An Online Business In UAE

During the epidemic, the UAE also experienced a huge affiliation with the eCommerce industry. Sales of $3.9 billion were set just in the online retail sector in 2020. The market for consumer electronics increased to 31%, and the food and beverage sector recorded profits of more than $400 million. This places the UAE as the finest location in the world to launch your online retail company.

Start an Online Business in UAE

Analyzing the eCommerce Industry

In Dubai, Souq.com set the ball moving back in 2006. Many referred to it as the Middle East’s Amazon because it was the first eCommerce business in the area. Ironically, Amazon did purchase the business in 2017 for a staggering $580 million. Sources claim that at the time of acquisition, the eCommerce site had amassed roughly 50 million customers.

The eCommerce market in the UAE is predicted to increase by 23% between 2018 and 2022, creating a favorable environment for business. Additionally, it is expected that eCommerce sales would total roughly $27 billion, a significant increase from the $16 billion forecast for 2019 in this area. The UAE has established a reputation as the MENA region’s most developed eCommerce market.

If you’re still debating why you should launch an internet business in the UAE, consider the following:

  • In the UAE, about 99% of the population has internet connection.
  • The UAE’s m-Commerce market saw the greatest smartphone penetration rate rise from 29% in 2015 to 42% in 2020.
  • Governmental organizations have successfully adopted and supported e-payments.
  • Pro-business legislation initiatives include FinTech incubator development programs, which provide you access to regulatory support and mentorship boot camps.
  • The 39 provisions of the 2002 eCommerce Law decree, which governs a variety of eCommerce operations, including electronic transactions and data protection, enable to regulate them.
  • new licenses are being introduced to reflect various internet business activities, including home-based businesses, trade licenses, and even virtual licenses.
  • With a 0% rate for SMEs and startups earning up to Dhs. 375,000, the corporate tax rate is now set at 9%.
  • personal income tax exempt. Start An Online Business In UAE

Consumer thinking and purchasing behavior are influenced by a variety of factors in the UAE. This is due to the large number of foreigners that live and work in the area as well as the native Emirati population, who like internet shopping. Gen Z makes up the majority of consumers, but millennials are reportedly catching up and beginning to trust the layers of safety for online transactions that eCommerce firms are required to enact in accordance with UAE rules. Start An Online Business In UAE

As a prospective online business entrepreneur, you might find the following statistics interesting:

  • A total of 200 different countries make up the 88.5% of expats in the UAE.
  • Customers don’t mind spending more for their preferred brands, according to 34% of consumers.
  • 75% of shoppers would rather shop at one store than several instead of visiting other ones.
  • 65% of consumers do demand customized shopping experiences.
  • The majority of Emirati shoppers (69%) adore receiving special prizes and benefits.
  • 43% of customers are more likely to spend more money and shop more when they receive incentives.
  • 30% of consumers buy luxury products with their monthly paychecks.

How to Start an Online Store in the UAE

Once you have created and developed your eCommerce store, selling online becomes quite simple. You simply need to choose a server, come up with a name, and install your preferred CRM software. This might aid in the sale of your goods, but it unquestionably does not grant you the right to do so in the UAE. You must obtain an eCommerce license for your store in order to do this. Start An Online Business In UAE

The following are the top benefits of registering your eCommerce business with UAE government:

  • You avoid having to pay the huge Dhs. 500,000 fine.
  • Your shop can have an official brand.
  • In contrast to earlier times when word-of-mouth and flyers were the only possibilities, you may now advertise your items on a variety of media channels.
  • You are permitted by your eCommerce license to create a bank account and even apply for a bank loan for your company.
  • Your license gives your clients a sense of security and assurance.
  • Your high-quality goods have an easy time getting to a variety of clients.
  • To grow your business operations, you might formally associate with other companies like delivery services or warehouses.
  • You can provide a variety of digital payment options.

Make Your eCommerce Analysis

Choosing the kind of activity your eCommerce store will engage in is always the first step. You can create a store that sells goods for pets, food, skincare, fitness, furniture, electronics, and other things. Just be certain that the goods you sell are accepted as lawful in the UAE. Start An Online Business In UAE

Look at some of the well-known eCommerce stores like:

  • Amazon
  • Noon
  • Namshi 
  • Mumzworld 
  • Deliveroo 
  • Carrefour
  • Hypermarket Lulu

Selecting an E-Commerce License

Contact the Department of Economic Development (DED) in the Emirate of your choice if you want to start a mainland or local business in the UAE. This is due to the possibility of different papers and approvals, even though each Emirate provides some sort of eCommerce license. Additionally, you might need to register as a limited liability company (LLC), which necessitates a partnership with a local Emirati who owns 51% of your firm’s shares, if you intend to sell both locally and online. Start An Online Business In UAE

Let’s now examine what some of the Emirates have to offer in terms of internet sales licenses in the UAE.


The Dubai Economy Development (DED) is accepting applications from GCC citizens, expats, and Emiratis for its eTrader license program. You can start an online store or sell on other social media platforms. It is a single ownership license, thus you cannot create a physical business or issue visas. The license costs Dhs 1,070 in addition to Dhs 300 for membership in the Dubai Chamber. Start An Online Business In UAE

With this license, you can launch a few enterprises, including:

  • startups that don’t need or don’t have the necessary resources for a physical location.
  • online company owners who trade in these activities.
  • Remote and independent contractors.

The Intelaq license is another license that foreigners and Emiratis can earn. It provides you with a trading brand that you may use for a variety of marketing initiatives since it was created especially for home-based business entrepreneurs. Although the license can be obtained in about one hour, it must be renewed annually. The price of this license type is 1070 Dhs.

Abu Dhabi

There are two licenses available for setting up an online business in the UAE under the eCommerce license offered by the Abu Dhabi Department of Economic Development (ADDED). The initial license functions as an addition to your current trading license. The other license, which is brand-new, enables you to do online and social media sales.

Depending on the kind of goods you intend to sell, the license can be expensive. For instance, PCs and accessories cost about 2,500 dirhams. Mobile phones, women’s clothing, and kid’s toys are all priced at 1,000 dirhams. Start An Online Business In UAE

The license also lists 1057 qualifying activities and is available to inhabitants of the UAE, GCC countries, and Emiratis subject the following legal formation conditions: Start An Online Business In UAE

  • Establishment for Emiratis and GCC nationals
  • Establishing single-ownership corporations for Emiratis and GCC citizens, 

Top Online Business Concepts

The new permits that the UAE is granting have been utilized by numerous foreign nationals. There are home-based enterprises popping up everywhere. In a sense, the permission has given them the ability to dream large. Start An Online Business In UAE

The following are some of the top internet business concepts popular in the UAE:

  • Catering 
  • Baking
  • Accounting, 
  • Tax preparation, and Legal advice
  • Online Trainer for the Tailoring Industry 
  • Digital Marketing Agency 
  • Online Booking Platform 
  • Social Media Influencer – YouTube, 
  • Instagram, or TikTok
  • Gaming Services Online
  • Business Real Estate Handyman Studio for Business Artists

The UAE’s New Virtual Licenses

In the UAE, a unique type of license has lately been introduced. You have the option to establish virtual businesses thanks to the virtual license. These unique licenses, which don’t require you to be physically present in the UAE to conduct business, are offered by both Abu Dhabi and Dubai. Start An Online Business In UAE

You may engage in the following commercial activities with this license:

  • Website Design
  • Internet safety
  • Interior Design Product Design Fashion Design

For More Details Contact Us

Post a comment

Your email address will not be published.

Related Posts