How to Start an E-Commerce Business in Dubai, UAE?

E-Commerce Business in Dubai

The COVID-19 pandemic led to a global transformation, in terms of our lifestyle, eating habits, working culture, and even our shopping preferences. The outbreak stimulated the rapid growth of online shopping all over the world, including Dubai.

The Emirate has one of the highest internet usage in the world, which makes it a suitable place to start an online business. Starting an E-Commerce Business in Dubai is convenient, fast, and secure, but if you have the right knowledge and expertise by your side, it will be an easy breeze.

Benefits of opening an E-Commerce Business in Dubai, UAE

You can find many compelling reasons to consider an E-Commerce business setup in Dubai –

Fastest growing market

Despite having less population than other GCC nations, the UAE has managed to outperform them in E-commerce revenue. Dubai has the most frequent online shoppers in the world where almost 80% of the population make purchases online.

World-class infrastructure

Dubai has one of the best transportation infrastructures in the world which is a requisite for e-commerce businesses. The Emirate is ranked 3rd in the Global Competitiveness Report 2018 for owning the best-in-class airports, seaports, and highways. Moreover, the UAE government aims to invest more in the development of roads, bridges, and other public works in order to support economic growth, while ensuring sustainable development.

Extensive support

The World Bank’s Doing Business 2020 report has ranked the UAE 16th in Ease of Doing Business. Moreover, the government has launched the Dubai E-Commerce Strategy with the aim of making it a global logistics hub in the Middle East region. The strategy mainly focuses on bringing in more foreign direct investments in the country through new e-commerce businesses and reducing costs by enhancing storage, customs fees, VAT, and transportation.

Gain a competitive advantage

With the city’s aim to create the perfect incubator for e-commerce businesses, it offers a plethora of ecological goods and services to drive the business and give it the extra push it needs to grow. In addition, the business gets to benefit from the elevated infrastructure, simple procedures, connectivity, exceptional business support, favorable government incentives, and other provisions.

Procedure to start an E-Commerce Business in Dubai

Here we are sharing some expert tips and tricks to make the process of getting your E-Commerce Business in Dubai up and running easily –

Discover the market offerings –

This simply means market research. It’s the only way you can understand the needs and expectations of your customers. Furthermore, you need to decide on a business model based on the market potential. For example, business-to-business(B2B), business-to-client(B2C), or client-to-business(C2B).

For better clarification, all you need to do is get in touch with an expert consultant at UAE Expansion who can suggest the right business model that would align best with the market trends, consumer needs, and the Unique Value Proposition (UVP) of your business.

Choose a jurisdiction and office premise –

Once you select Dubai as your business base, you need to make two more decisions regarding your office location – The jurisdiction where you will register your business and the office premises. For jurisdiction, you have mainly two choices in Dubai – Mainland and Freezone.

Keeping in mind the long-term business needs, your budget, and the pros and cons of each jurisdiction, you have to come up with a conclusion. UAE Expansion business setup specialists will help you in this process.

Similarly, you have to find the most suitable site for your workspace. Further, arrange the tenancy contract along with the Ejari certificate and get it ready for the licensing procedure.

Determine the E-commerce activities –

You cannot operate your business without a license, be it an online business or a traditional offline setup. To ascertain an E-commerce license in Dubai, you have to determine the activity you want to carry out. For example, the type of products or services you want to trade and the size and scope of your business.

Your chosen online activities will determine the type of E-commerce license you can apply for. To figure out the most lucrative business activities and the right type of license, get in touch with an experienced consultant at UAE Expansion.

Register the trade name –

The next important thing is to get your business name approved by the DED (Department of Economic Development). You have to fill up an application form and apply for approval. Before that, make sure that the proposed name doesn’t contain any foul terms or any religious and controversial words. Also, ensure that it is completely legitimate and available for registration.

Gather the relevant documents and apply for the license –

The DED may require you to provide some of your credentials in order to authorize your request for an E-commerce license in Dubai. Gather and organize all the required documents and submit them along with the license application form. Further, make the fee payment and wait for approval confirmation. Once received, collect all the corporate documents from the relevant department.

Create a website –

The most important aspect of an E-commerce business is a stable, optimized, user-friendly, and secure website that offers a fantastic shopping experience to the customers. It should be easy to use and free from any technical glitches regardless of the gadgets people use for shopping. Since it’s a window that connects you with your consumers, make sure to include all the function features that would make it work like a charm and improve the shopping experience of the customers.

To ensure the sound performance of your website, it would be best to hire the best hands and brains to develop and design it.

Open a corporate account –

You just cannot start operating your business in Dubai without a corporate bank account. To open an account, you will have to submit a few essential documents such as the company registration certificate, trade license copy, passport details, shareholders’ details, and many other official documents.

Although the procedure to open a bank account is simple, you still might need professional assistance to comply with the formalities. The business advisors at UAE Expansion can recommend the finest banks that offer great deals and bring endless benefits.

Types of E-commerce license in Dubai

The DED has introduced several types of e-commerce licenses based on business activities –

The cost of the license you choose will depend on its type, business size, visa quota, business model, and office space. Moreover, there are certain requirements to fulfill to get the license, which UAE Expansion experts will guide you with.

E-commerce business ideas to start in Dubai

With new market trends and digitalization, the options for online business are plenty. So, here are some of the simple yet best business ideas to begin online in Dubai –

  • Drop-shipping
  • Consultation
  • Freelancing
  • Social media marketing
  • Food delivery
  • Virtual fitness coach
  • Retail goods trading
  • Online teaching
  • Web development
  • Virtual Assistant
  • Graphic Designing

Set up your E-Commerce Business in Dubai

Through this article, you now might have the slightest idea of how the e-commerce business setup works in Dubai. It requires deliberate planning and paperwork. Therefore, we suggest you connect with UAE Expansion, which is an experienced business setup service provider delivering company formation services across the UAE. From company setup to day-to-day operational needs, they will be with you throughout your entrepreneurial journey.

Just take them along and watch your dreams come true!

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