How to start an E-Commerce business in Dubai

Start E-Commerce Business in Dubai

Global Media Insight is a Dubai based leading Web Development Company that provides promising information on the internet and social media statistics of the UAE. As per the stats and data mentioned on its official website, UAE has a population of 9.61 million in0 2019. Out of 9.61 million, 9.52 million are active users of social media. Out of all these users, around 8.8 million users use their mobile phones to access social media websites. 

The website also shows the stats for social media penetration in the UAE in 2019. Facebook is used by 82% of the total population that equals to 7.88 million people. YouTube is also accessed by 82% people. 61% people use Instagram, which is followed by Twitter, LinkedIn, Pinterest and Tumblr respectively. As compared to the last year, 1.5% growth rate was recorded in the numbers of social media users. 

UAE has become one of the fastest-growing E-Commerce hubs globally and has many reasons for the same. 

Find some of the major reasons for the growth of UAE in the following section. 

1. Increased online penetration

As per the stats provided by the Global Media Insights, an average person in UAE spends around 8 hours on the internet every day. Further, the social media consumes 2 hours and 59 minutes of an average Emirati per day. Hence, the UAE has a 99% internet penetration, which means that almost the entire population has internet access. Out of these 99%, 85% people have searched the internet for purchasing products. 

In a single month, 91% people logged on a retail website out of which 63% conducted an internet purchase. Another interesting statistic is – the number of users that used a desktop for online purchase is equal to the people using mobiles for internet-based shopping. 

2. Proactive, Business-friendly Government

The UAE government prioritizes E-Commerce and cashless transactions over the traditional business practices. This incredible support from the government for a cashless economy is commendable and has served as an important parameter in the transformation of UAE from a traditional to a digital-friendly market. An initiative named “Paperless” has also made it to the Smart Dubai 2021 Project. This initiative promotes digitization by completely overriding paper usage for all government transactions. 

3. Millennial influence

A considerable percentage of the UAE population comprises of the millennials. The millennials in 20s and 30s of their ages are intensive members of the digital era and use lots of digital platforms for tasks such as online shopping. These age-groups are also active users of social media, and prefer using the internet for different types of online transactions.   

4. World-class infrastructure and logistics

Dubai is home to world-class logistics and an excellent infrastructure; both of which play a vital role in regards to the E-Commerce market. The Jebel Ali Port, which is the largest in the Middle-East, is well known for its immense logistics capabilities. Further, the Dubai International Airport is a gateway airport connecting the Western and the Eastern parts of the world. It is also an important trading hub for the countries in Asia, Africa and Europe.  

5. E-commerce companies and online payment services

UAE witnessed a huge surge in e-commerce market from 2014 to 2018. is the largest E-Commerce website in Dubai and largely influences the online purchase patterns of the Emiratis. and are the other notable players in e-commerce in the UAE. The growth of the e-commerce market in UAE has been boosted by the online payment gateways like Telr Checkout and PayFort and e-commerce development company like SpiderWorks.

6. Technology Boom

In the recent years (last 5 years), the start-ups have considerably increased in number. This has also led to an increase in the number of start-ups dealing in e-commerce, Big Data and Artificial Intelligence. All these factors have helped in the development of a safe and easy-to-use online experience for the Emiratis. Now, people can use technology and internet-based platforms on a daily-basis without any doubts and worries. The retail business sector has also benefitted a lot from the same. Using the technological advancements such as Artificial Intelligence and Remarketing strategies etc, the e-commerce providers can target the RIGHT audience and offer a RIGHT listing of products without much ado. 

How to Start an E-Commerce Business in Dubai?

Find out the steps for setting up an E-Commerce business in Dubai in the following section.

  1. Trade License – Dubai has mainland and Free Zones for trading. To start a business, a valid trade license is required depending on the jurisdiction. Department of Economic Development provides the Mainland License and Free Zone Authority offers Free Zone License. 
  2. A Registered Office – Owning a registered office space is not compulsory to set up an E-Commerce venture in the mainland zone of UAE. For the Free Zones, the rules vary with Free Zone jurisdictions for e-commerce and other trades. Dubai CommerCity is responsible for the promotion of E-Commerce trade in Dubai. 
  3. Official Website – For the businesses with online purchase and online customers, it essential and inevitable to have a full fledged and well-equipped official website with the standard purchase and service functionalities. The process starts with the domain name registration which is simply obtaining the name of the website or the online address of your business place. Kiltons business consultants offer end-to-end support and incredible guidance for obtaining the most suitable domain name within no time and without any hassle. 
  4. Payment Gateway Settings – Online transactions are a crucial part of an online retail store, and are done via the payment gateways. Owing to the surge in IT and internet-based companies, UAE has many reputed agencies working as payment gateway providers. We recommend looking for stability and success rate of online transactions while making the final choice.  
  5. Import/Export Licenses – Lastly, you have to register the business firm with the port and customs department of the particular Emirates in relation to the business domain chosen by your. This is essential for importing and retailing the products and commodities in the online UAE market. Don’t forget to complete the formalities such as customs duty which is applicable on all mainland imports. Free zone establishments don’t have to pay the customs duty if and only if the sale of the product is limited to the jurisdiction of a Free Zone; or if it is an international export. The Free Zone business establishment has to however, pay the customs duty if the product sale is focused on the mainland. This requires an external distribution agent. 

Start your E-commerce business with Kiltons Business Setup Services

Kiltons Business Setup Services is the best source for all kinds of business setup assistance, License renewal, visa renewal and any other types of documentation services that are required for company formation in Dubai and UAE. Our team members are experts of the trade policies and rules of the UAE and are updated about the UAE Federal laws as well. We are the best guidance for all kinds of businesses and setups and the best resort for all kinds of businessmen.

Choose Kiltons; Choose Success!