E-commerce Business in UAE
Ecommerce

Top 5 Reasons to Setup E-commerce Business in UAE

UAE has been a hotspot for business opportunities. No wonder the e-commerce business sector in the country is also increasing rapidly. Thus, UAE today is the fastest-growing E-commerce hub in the Middle East and North African region! Whether it is a convenience or cost-effectiveness, there are many reasons behind the boom. So, if you plan to set up your E-commerce business in UAE, this might be the greatest decision of your life. However, if you have second thoughts, check out these notable reasons to set up an E-commerce business in UAE.

  1. Favorable taxation

The primary reason is, of course, the UAE’s excellent tax rates. Since 2018, the nation has imposed a 5% value-added tax. The standard VAT rate is applicable for the supply of goods or services locally or inside the GCC. However, VAT is not charged on goods or services that are exported. That’s right, except for hotels, oil and gas firms, and overseas bank branches, practically all business activities are tax-free! To put it in simpler words, you can run a successful E-commerce business with no personal income taxes, no capital gains tax, no withholding taxes, and No corporate tax.

  • Ease of setting up

In Dubai, starting an online store is a straightforward process. You have the option of working in a free zone or a non-free zone. If you are new to the licensing and registration part, you can still easily set up your company with the help of a reputable business consultant.

  • Wide exposure

You’ll be able to reach a considerably larger audience than you would if you were selling through physical stores or other online platforms. With an increase in population, the UAE sees a spike in demand for E-commerce services. By utilizing everyone’s internet presence, it is significantly easier to grab a vast audience. As we know, an e-commerce business model has the advantage of being able to scale up much more quickly.

  • Strategic location

Cities like Dubai’s strategic location at the meeting point of East and West make it the perfect marketplace. The city is the ideal place for an E-commerce license because it has a robust infrastructure and a significant international airport. Because of the ideal location and large sea and airports, UAE has access to 2.5 billion consumer markets in the Gulf, Africa, Asia, CIS nations, and Europe.

  • Secure banking system

Another solid reason is that the UAE has a cutting-edge banking system backed by recent developments in financial technology. The financial sector competes with the most developed economies in the world and upholds international standards. When we specifically talk about E-commerce, numerous payment gateway providers in the UAE help with online payments. Ultimately, online payments and a safe and secure banking system are essential for running an E-commerce firm.

Final Words

Overall,cities like Dubai and Abu Dhabi have long been a favorite of business travelers from throughout the world. The UAE is prepared for extraordinary growth with a bright future thanks to lowered market barriers, enhanced infrastructure, simplified business license applications, and better warehouse facilities.