As the most advanced e-commerce market in the Middle East, demand for e-commerce licenses has been growing in Dubai, UAE.
The United Arab Emirates, with a population of 10 million, is predicted to hit US$50 billion (AED 184 billion) in e-commerce transactions by the end of 2021, as a result of the global coronavirus pandemic.
A number of factors have contributed to the UAE’s impressive e-commerce growth, including the rise of start-ups and tech-savvy consumers.
The government has also played a vital role in reinforcing smart transactions between businesses and consumers today by expanding cashless payment options for various types of purchases and government services in the country.
During the pandemic last year, the growth in E-Commerce licenses in Dubai made it one of the most popular license types for entrepreneurs looking into setting up new businesses. Individuals in being in lock-down or furloughed prompted many to develop a ‘side-hustle’ or go after that business idea they had long thought about.
Free zone or mainland for ecommerce businesses?
Assuming the majority of your customers are outside the UAE, a free-zone company setup will be ideal for E-commerce.
If a large proportion of clients are anticipated to be within the mainland area, then a mainland license issued by the Dubai Economic Department (DED) might offer more scope for your business.
Ultimately, the best solution for you will depend on a number of factors such as: customer location, warehousing, number of visas, drop-shipping or managing stock and deliveries yourself and so on. A discussion with one of our experts can help you navigate these questions easily.
How easy is the setup for Dubai e-Commerce license?
An E-commerce license in UAE does not require any special approvals and is therefore relatively straightforward to set up.
If you require warehousing or dedicated office space, then some free zones will offer more benefit than others.
In keeping with most other setups, following your consultation you will need to pick a company name.
There are rules governing what is allowed, but in brief it must not reference Allah or Islam, not cause offence, not use “UAE”, “International” or “Dubai” at the beginning. You may use your own full name, but not as initials.
The ecommerce license can be set up remotely without you needing to travel to the UAE in perhaps 3-5 days once you provide a copy of your passport. However, in order to gain a residency visa and bank account you need to be physically present for the medical and face to face meeting respectively.
To take advantage of this growing market sector, please get in touch with us via WhatsApp or the contact form.