Everything You Need to Know About E-Commerce Restrictions in Dubai

Learn about all you need to know about restrictions on e-commerce activities in Dubai. Find out what kind of licenses you need and how you can protect your customers.

Everything You Need to Know About E-Commerce Restrictions in Dubai

Retailers who operate e-commerce platforms must ensure that they have the necessary license to conduct such activities as part of their current business license. If the authorities determine that e-commerce cannot be added to the already authorized activities of a retailer, a new license will be required. Currently, there is no general e-commerce activity available, nor do you need one. If the license is obtained by a company with a general business license, it can carry out all types of operations, either physically or through an online platform.

Generally, if a company is licensed to operate in a particular industry, it cannot operate in another online industry. The parties are required to keep the secrets that the other party has told them, in terms of trade, agreement or any similar type of information related to trade. For the sake of transparency, it is important for e-commerce companies to establish their privacy policy in a way that is clear and legible to the general public, in order to reduce the chance that customers may file disputes. In support, the Dubai Department of Economic Development (DED) introduced a number of e-commerce licensing activities. In conclusion, setting up an e-commerce site can be seen as a logical extension of a retail brand or a simple way for a company to create and maintain a direct relationship with its customer base. In addition, an e-commerce site must have an appropriate privacy policy for the countries in which it operates.

The Dubai Economy (DED) eTrader license allows citizens of the United Arab Emirates and the GCC who reside in Dubai to practice commercial activities through various social networks. The United Arab Emirates, and in particular Dubai, has one of the highest percentages of Internet users in the world, with around 90 percent of the population actively participating in the Internet. The new e-commerce initiative in Dubai has raised questions as to whether an e-commerce license is mandatory or not and what such a license allows. Companies must ensure that they have the necessary license to conduct e-commerce activities as part of their current business license. Otherwise, those retailers must ensure that their authorized business activities are expanded to include e-commerce.

The addition of an e-commerce activity to the license is subject to the discretion of the relevant authorities. The decision to allow the addition of such activities is based on whether the e-commerce activity is compatible with the retailer's currently authorized activities. If not, then a new license will be required. It is important for companies to establish their privacy policy in a way that is clear and legible to the general public, in order to reduce the chance that customers may file disputes.

Thea van Gerritsen
Thea van Gerritsen

Incurable internet advocate. Infuriatingly humble travel buff. Subtly charming twitter fan. Devoted burrito aficionado. Infuriatingly humble pop culture evangelist.

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