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E-Commerce sector in UAE: Here’s everything you must know

E-Commerce sector in UAE: Here’s everything you must know

With the onset of the Covid-19 pandemic and subsequent lockdown, there has been a substantial shift in our outlook regarding our way of living. The traditional way of physical shopping couldn’t remain unscathed from this effect and e-commerce or virtual shopping platforms are rising at a rapid pace.
In this article, we are going to discuss the law governing e-commerce businesses in UAE with the help of our best lawyers.

Growing numbers in the e-commerce landscape
In the wording of our best lawyers of Dubai, e-commerce means a virtual platform offering facilities to choose, select, and buy different kinds of accessories through the internet only. It is expected that the e-commerce market will grow by about 22% by the end of this fiscal year. Presently, it is contributing around 4.2% of the total retail revenue. Initially, in 2020, 196 licenses were granted to commence the e-commerce business by the DED, but now, the number has exceeded more than 1000. Our lawyers of Dubai have pointed out that with the growth in technology, the e-commerce sector is bound to grow.

Major legal consideration for e-commerce businesses
In the opinion of our best lawyers of Dubai, the e-commerce sector is regulated by various laws and regulations. Some of the notable legal provisions are discussed below-

  • Licensing requirement
    The primary requirement for commencing an e-commerce business in UAE is getting a valid license and among the licensed activities, e-commerce must be a core one. Though existing license holders may expand their license by adding e-commerce activity, it is subject to the discretion of the authority. However, considering the cost and other factors involved, it is advised to take have a new license.
  • Terms and conditions of sale
    Since e-commerce is premised on transactions through a virtual platform, the terms and conditions of sale must be mentioned on the website. It must specify the rights, responsibilities, and mode of interaction between all the parties while ensuring the interest of customers remain protected. The provisions regarding the payment gateway must be unvarnished and unambiguous. In a nutshell, there shouldn’t be exploitation of consumers in any matter whatsoever.
  • Electronic contracting
    In the e-commerce landscape, the contract is entered into by the buyer and the seller through a virtual platform. The most common method of the same is the ‘click-to-accept’ model whereby the customer by clicking on that box accepts all the terms and conditions applicable thereto. In UAE, electronic contracts are governed by the provisions of Federal Law No. (1) of 2006 (UAE Electronic Transactions and E-Commerce Law).
  • Content
    It is pointed out by our best lawyers of Dubai that the content on an e-commerce website is created by the operator, third parties, and customers. It is pertinent to note that the operator is legally responsible for all the content posted on the website and it must comply with the provisions of Federal Law No. (15) of 1980 (UAE Publications and Publishing Law). The Regulations framed by the National Media Council are also applicable to the same.

Conclusion
The E-Commerce sector is going to witness a boom in the upcoming years. Though people have started moving to physical shoes with the ease of restriction, it is highly improbable to achieve the pre-Covid numbers. The opportunities in this sphere are endless and it is the perfect time to set up your business. To know more information, you can contact our best lawyers of Dubai.

BSB legal is a specialized law firm of Dubai. Our best lawyers will assist you in making applications, litigation, and other advisory work. To know more information, kindly contact one of our best lawyers in UAE. You can email us at info@bsb.legal or call +971 5 08014003.

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