The UAE is rapidly growing its e-commerce sector as people prefer online shopping and electronic transactions over traditional shopping methods.

In the UAE, e-commerce presently accounts for 4.2 % profit and is expected to rise by an average of 23 % by 2022. Online shopping used to be a luxury and a convenience; now, it’s a necessity. With the advent of the digital era, everything from our daily shopping to cash payments has shifted to online platforms, which are capable of providing all necessary services in a more convenient and friendlier manner than a retail store.

The growth and success of e-commerce are perhaps the most significant of all developments in retail. The UAE is now the most advanced e-commerce sector in the Middle East and North Africa, according to a joint study by Dubai Economy and Visa with an expected annual increase of 23 percent between 2018 and 2022.

While customers still enjoy the ‘destination shopping’ aspect of going to a physical store, COVID-19 has encouraged many people to try e-commerce for the first time. This increase in online users is not projected to decline down any time soon.

Millennials and Gen Xers are the biggest online shoppers, with 67% of Millennials and 56% of Gen Xers preferring to shop online versus in a mall. Part of the reason these two groups of people spend more money on the internet is that they spend more time shopping. Despite the fact that women are stereotyped as shoppers, males outspend women 28 % when it comes to online shopping.

The UAE has a rising and perennial set of online business contenders. Amazon, Deliveroo, Namshi, Noon, and Careem Eats are the current leading rivals. Potential newcomers, such as Carrefour, have successfully constructed a solid Omnichannel web-based business platform and are fighting with industry leaders. We will almost certainly see a boom in the next few years as innovation and technology advance.

Residents of the UAE are also in the top 10 in the world when it comes to spending time online and on social media, averaging seven hours and 54 minutes per day. Can you imagine that we spend these many hours a day on social media!?

While many countries compete for firms and investments, starting an e-commerce business in the UAE has a number of advantages over other jurisdictions.

Here are the reasons why you should set up an e-commerce (online) business in the UAE:

  • Ease Availability of Business License
  • Increased internet usage and use of mobile wallets.
  • Non-payment of personal tax turns out to be one of the most attractive features to business professionals as the UAE doesn’t demand any taxes from business owners.
  • Increased reliance on e-commerce services by consumers.
  • E-commerce business owners can seek a UAE resident visa.
  • Improved cashless society and logistic infrastructure expansion.
  • If you’re looking to expand your business, the UAE’s location proves to be advantageous. It becomes much easier for business owners to enter neighboring countries and conduct business.
  • The willingness of vendors to switch to electronic platforms.
  • The country’s growing number of companies and tech-savvy clientele.
  • The UAE government is promoting better business-to-consumer transactions by expanding cashless payment options for a variety of goods and government services.

Funding in E-commerce business

A license is required for a company’s smooth start. In the UAE, obtaining a license is simple. Business owners have the option of starting their business in a free zone.

It should be noted that web-based businesses are not generally limited to conventional shopping alone. The UAE’s web-based business ecosystem is highly advance and assorted, due to which it has been expected to have an extended worth of $48.6 billion by the end of 2022. In the light of this, we UAQ Free Trade Zone has ventured to focus on setting up your dream e-commerce company in the most hassle-free way– and you benefit from 100% company ownership, a strategic location, and incredible ease of doing business

There are numerous advantages when choosing a free zone; it includes 0% income tax, 0% corporate tax (within free zone &, International) 100% repatriation of business profits and low customs taxes. Entrepreneurs can set up an e-commerce firm in the UAE based on their interests thanks to the availability of UAQ FREE TRADE ZONE.

Easy Payment Solution for E-commerce:

UAQ FTZ offers an online payment gateway custom solution through one of our Partners that allows the client to get a merchant account within a short period of time and with minimal paperwork.

The client with a merchant account will be able to send payment links to their customers, issue Invoices and E-receipts.

Warehouse Facilities:

In general, the e-commerce business is closely associated with warehouses, which store, process, and dispatch items and deliveries. The necessity for a warehouse arises as a company grows and tries to fulfill as many customer orders as rapidly as possible. Warehouse storage guarantees that businesses can safely store their enormous inventory of goods while also managing orders effectively.


We have that covered as well, UAQ FTZ offers full warehousing options- from 100sqm to 150sqm with flexible choices to rent space by the day so you only pay for exactly what you need.

Combine your e-commerce marketplace with a flexible pay-per-day warehouse and deliver faster with the greatest efficiency.

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