Updated 26 August 2024
Starting an e-commerce business in the UAE is a great idea because the country is a growing centre for online shopping.
Many people in the UAE are buying things online, and the market is getting bigger every year.
The UAE’s e-commerce sector is expected to skyrocket, with sales projected to increase from $2.6 billion in 2019 to $9.2 billion by 2026.
According to the National Globally, the e-commerce market is also growing rapidly. By 2027, it’s expected to be worth $55.6 trillion, up from $13 trillion in 2021.
This means the global market is growing at an annual rate of about 27.4%, according to data from a US research firm called Imarc Group.
The UAE is a great place to start an e-commerce business for many reasons:
Low Taxes: In the UAE, there are no income taxes on personal wages or salaries. Businesses pay only 9% in corporate tax, and a small 5% VAT applies only if the business’s annual profit is more than AED 375,000 (about $100,000).
Full Business Ownership: Entrepreneurs can fully own their e-commerce businesses in the UAE without needing a local partner or sponsor. This makes it easier for foreign business owners to set up shop.
No Minimum Capital Needed: Unlike many other places, the UAE does not require a minimum amount of money to start an e-commerce business. This means you can start with a small investment.
Great Location: The UAE is centrally located, making it easy to connect to global markets. This is perfect for shipping and distributing products worldwide.
Top-Notch Infrastructure: The UAE has excellent infrastructure, including advanced logistics networks and high-quality technology, which are essential for running a successful e-commerce business.
Supportive Business Environment: The UAE government is continuously improving its regulations to support e-commerce growth. This makes the process of starting and running a business smoother.
A survey has shown that about 70% of people in the UAE shop online regularly, indicating a strong market for e-commerce businesses.
Starting an e-commerce company might seem complicated, but if you follow some simple steps, it becomes much easier. Here’s a breakdown that a class 10 student can easily understand.
First, you need to decide where you want to set up your e-commerce business. There are two main options: a free zone or the mainland. Each has its own advantages:
Next, you need to set up your online store. Here’s how you can do it:
Logistics is about how you will deliver your products to customers. If you’re in a free zone, you cannot directly ship products to customers within the UAE. Here’s what you can do instead:
By following these steps, you can start your e-commerce company smoothly and reach your customers effectively
Bagisto is an open-source e-commerce platform, that offers a flexible foundation to build an e-commerce platform.
If you want to build the marketplace you can also use our Bagisto Multivendor Marketplace module.
We can also do integration and customisation services and make an ideal e-commerce platform for you.
Anekke is a UAE-based handbag company that specializes in manufacturing and selling bags and purses which showcase vibrant patterns and designs which is using the Bagisto.
Now you can start an eCommerce business in UAE with the help of Bagisto which will underline all the requirements of an eCommerce website of a Middle East region.
If you have more details or questions, you can reply to the received confirmation email.
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