WHAT YOU NEED TO KNOW ABOUT E-COMMERCE BUSINESS SETUP IN UAE?
Digital age is the new normal and we are living in a time where everything has moved to the online platform. From groceries, apparel, food, travel to appliances, medicines, machines each and everything can now be ordered with just one click.
UAE pioneered the e-commerce industry in the Middle East and the entire GCC. This is because of the technological advancement in the country. People have been speding a lot of time on the internet and majorly prefer shopping from the comforts of their home.
A few decades ago, this was not the scenario. Online shopping and e-commerce were not as popular as they are now. As per recent studies, the market share for these e-commerce firms are rising drastically, not only in Dubai but the entire country.
Another important fcator that led to the rise of e-commerce in the UAE is the pandemic that hit the world in 2020. Since then, e-commerce has broken many records. Apparently, the amount spent on global E-commerce climbed to $3.8 trillion in 2017.
What is the future of e-commerce in the UAE?
UAE holds a strong future for e-commerce in the coming years, and this won’t be stopping anytime soon. If you are thinking to invest in an e-commerce business in the UAE, then this is the best time to do so. This is also supported by the fact that the UAE government is always on the path to bring new initiatives to make sure that expats investing in e-commerce reap benefits.
An added advantage that decides the future of e-commerce in the Emirates is the vibrant location and thriving economy it showcases. In addition, Dubai which is an important business hub in the UAE supports many e-commerce companies. It serves as one of the leading and most technically sound infrastructures in the world.
The GCC ecommerce market is expected to grow from USD 8.3B to USD 28.5B by 2022 driven by KSA and UAE. Ministry of Economy
Why you must apply for an e-commerce license in the UAE?
Since the global pandemic struck the entire world, people are now considering buying things online. It is very clear now that this industry knows no limits and will continue to boom across all major commodities. Social lockdowns, the ease to get everything delivered at home has made it easier for the users to shop.
For expats, and international start-ups looking to start or expand their e-commerce business to the next level, this is the best time to invest in the UAE. Speaking of the UAE market trends in the e-commerce domain, the graph is contiously going upwards. Once you start a e-commerce business in the UAE, you are in a good position to completely take advantage of the e-commerce market.
What is the e-commerce license in the UAE?
Before starting an e-commerce company in the UAE, you need to have a license with you. This license is necesssary to conduct an e-commerce business in the country. It is a legal document that states that you are allowed to operate lawfully in the country. The license is issued by the Department of Economic Development (DED).
What are the major types of e-commerce license in the UAE?
1. E-trader license
The E-trader license is for people who offer services in the e-commerce sector. The licnese is valid for people who live in UAE and the GCC. With this licence, you are not permitted to open a store or a physical office.
2. Portal license
Portal license can be obtained by the expats and the non-residents of the UAE. With this license, you are allowed to commence an online business in the Emirates. In addition you can if you are selling products, services on your website, this license is for you.
3. Virtual company license
A virtual compnay license is useful for those who are conducting their e-commerce business from the other countries. However, with this license, you can only deal with advertising, designing, printing, and computer programming and related operations.