How to Start an Online Business in Dubai?

by commitbizadmin 11, Sep 2019

Start an Online Business in Dubai

With nearly half of the world’s population becoming a regular web user, the internet economy is providing companies with an essential source of growth. The United Arab Emirates is one of the forefronts of digital space and online business in the world. Currently the retail market in the UAE accounts for an annual sale of worth $10 billion, which sets itself among top-ranked countries in the digital world. The online survey conducted by Hootsuite and We Are Social revealed a stunning percentage of UAE’s total internet users who now buy online. The study showed 62% of the UAEs internet users now shop online and spend an average of $332 per purchase, making UAE Middle-East’s largest marketplace for online shopping.

Dubai in the United Arab Emirates is becoming more popular for online business as the government if offering license even for the freelancer to sell on social media. A small community is created out of this pro-business attitude of the government. The online business is increasing with every year and has a further scope in the coming years.

All about Online Business in Dubai

When starting a business in Dubai, you will need to consider a wide range of factors, but first and foremost you will need to decide what products and services you want to offer to your consumers online. Purchase and sale of products and services online is basically e-commerce. And E-commerce business is a competitive world and an online store without a plan will often result in failure.

Research

Ask yourself three things before diving into the online world i.e.

  1. What business sectors are witnessing rise today?
  1. What sectors are expected to thrive in the coming years?
  1. What sectors do I have an advantage in?

When it comes to the first two questions, the best thing you can rely on is research, research, and research. The third question is personal as you will reap benefits from the product that you have created and sold. Therefore ensuring that you have a viable product to showcase a community from the very beginning is a key to being successful in this sector.

Business License

Once you have decided what you want to offer your targeted consumers, the next step is to take appropriate actions towards a starting your store online. The most crucial step here is to have a trade license so that your business is legally operated across the UAE. There are different trade license available depending on where you want to run your business (location) and what the business activities are. The license can be made available at the Department of Economic Development (DED) Dubai if operating from Mainland, or relevant Free Zone Authority if operating from a free zone. The process includes,

  1. Selecting the license type
  1. Understand registration cost and fees
  1. Prepare the documents
  1. Submit the application and documents to the authority
  1. Pay Fees
  1. Collect the license

Website

Once you are legally sorted, the most important step is to build your website. If you have a strong technical background, you can dive in and develop your site, but if not, you can hire someone to do it for you. And once the core sections of your website are live, you will want to start thinking about the design of your online store. Things like how your products are organized and how the user operates through your website, all affect sale.

Domain Name

After the website is set, you will need to select and register a domain name. This name will be used for your website. Domain name registration is important, and you have to pay a certain fee for registering the same.

Before starting this business, know that, if you are operating in Dubai mainland, then you need to remember that there is no specific license for E-commerce activities. You will need a simple trading license for a particular activity, while general trading license for general e-commerce license in Dubai.

If you pick free zone as your operating jurisdiction, then you will have to deal out your products in the mainland, after which you need to work with local distributors and warehouses as one is not allowed to ship goods directly to the customers in non-free zone parts of the UAE.

We at Commitbiz are Dubai based consultants who provide business setup services. If you are in need of these services, contact us today- we’d be happy to help you.