In the UAE, e-commerce has a promising future. From 2019 to 2022, global online retail sales are anticipate to nearly quadruple to US$6.54 trillion, and the UAE is one of the top B2C e-commerce markets in the fast expanding Middle East and North African (MENA) region. The UAE’s e-commerce sector is anticipate to continue growing by double digits until the year 2022 thanks to the country’s over 9.5 million internet users and 96.4% internet penetration rate.
Here are some important details about the UAE’s e-commerce market that you should be aware of if you are considering starting an online store there.
Why would someone launch an online store in the UAE?
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Middle East E-Commerce Market with the Fastest Growth
Despite having only one-third of Saudi Arabia’s population, the UAE outperformed it with an e-commerce business worth over US$10 billion. 60% of all online buyers are based in Dubai, where 81% of the 3.2 million adult residents shop online, according to Eshop World.
The Dubai E-Commerce Strategy, recently unveiled by the Dubai government, aims to establish the city as a major Middle Eastern logistics centre and boost its contribution to the local economy to AED12 billion (about US$3.2 billion) by 2023.
The strategy includes initiatives to increase foreign direct investment and cut the cost of online shopping by 20%. (including storage, customs fees, VAT and transportation).
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Exceptional Transportation Infrastructure
One of the best transportation infrastructures in the world is found in the United Arab Emirates. In addition to being placed third in the Global Competitiveness Report 2018 for “airport infrastructure and means of air transport quality” and fourth for “quality of infrastructure,” it also provides access to 80% of the global GDP in 8 hours or less.
Since the UAE’s project US$20 billion GDP is supported by the aviation sector, the government makes great efforts to keep its air transportation competitive. AED 1 trillion, or roughly $272 billion, has been invest thus far in airport infrastructure and development projects, according to official statistics. Just the airport infrastructure alone accounts for that.
Further outlining the nation’s plans to build roads, bridges, seaports, and other public works to assist economic growth is the UAE’s Infrastructure and Vision 2021, which intends to assure sustainable development while maintaining the environment. Talk with us to know about mainland company setup or Freezone company setup
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Support for New Businesses is Widespread
In the World Bank’s “Doing Business 2020” report, which evaluate general business regulations and practises, the UAE was place 16th in terms of ease of doing business, surpassing nations like Thailand, Germany, and Canada. The UAE has promoted the expansion of Free Trade Zones (FTZs), where companies can benefit from advantages like cheaper operating expenses, reduced tax rates, and professional networking possibilities, as part of its efforts to diversify its economy as outlined in Vision 2021.
In the UAE, how can you begin selling online?
We strongly advise establishing in Dubai if you want to launch an e-commerce firm in the UAE. As we have stated, 60% of UAE residents shop online, and Dubai actively promotes foreign investment in its e-commerce industry.
Dubai’s regulatory framework makes it relatively simple for e-commerce companies to get a licence to operate. However, despite the fact that it is a straightforward process, operating an online store without the appropriate licencing is against the law, thus precautions must be taken to do so.
How to Start an Online Business in Dubai
It is possible to register a business in Dubai online or in person while you are there. The typical steps you must follow to set up are as follows:
- Select your license category and your business ventures.
Although Limited Liability Companies (LLCs) are the legal entity of choice for most SMEs, your decision will be based on your specific needs.
What type of corporate organization do you prefer? What kind of business endeavors will you pursue? What is the status of your current residency? You should think about these issues when making your choice. This will ultimately determine what paperwork and permits you require to lawfully run your e-commerce firm in Dubai.
- Choose a location for your company.
In addition to needing a company address, you must still have a physical presence if you operate an online store. FTZs typically offer a range of reasonably priced solutions for businesses of all sizes and might offer office discounts for the establishment of new companies.
- Send your resume in
Complete all necessary paperwork, and send it to the appropriate departments together with any required application fees and signed paperwork.
- Establish a bank account
You should open a bank account for your business operations once you have your firm set up completely. In the future, managing your company’s finances and filing taxes will be simpler as a result of this.
Learn more about how to start e-commecre company in Dubai
