To main content

Movingo uses cookies to enhance your online experience. By using this website you agree to Cookie Policy.

Cookie Settings
Essential cookies
These are cookies that are either: used solely to carry out or facilitate the transmission of communications over a network; or. strictly necessary to provide an online service (e.g. our website or a service on our website) which you have requested.
Analytics cookies
Disabled
Cookies that track how users navigate and interact with a website. The information collected is used to help the website owner improve the website.
Advertising cookies
Disabled
Specifically designed to gather information from you on your device to display advertisements to you based on relevant topics that interest you. Advertisers will place these cookies on a website with the website operator's permission.
Custom cookies
Disabled
Cookies that store a user's browser preferences, such as preferred language and display format. Customization cookies are often used along with analytics cookies to collect information about users' site activities and provide custom browsing experiences.

How to start an e-commerce business in Dubai

How to start an e-commerce business in Dubai
Co-Founder & CEO movingo
Editor
Author
Iakov Kukushkin
Copywriter, Journalist
Mar 12, 2025
The UAE is ranked 45th in the world for e-commerce market size. This makes it a good place to start an online business. In this article, we will explain the simple steps to set up an e-commerce business in the UAE and point out things you need to be careful about.

$3,000 investment, 400% growth: how Mohammad's pet nutrition transformed the UAE market

One of our clients, Mohammad (we've changed his name and product details for privacy), is a vet nutritionist who noticed a big gap in the UAE market. Due to the extreme heat in the region, no local treatments were available for pets with kidney disease. Mohammad saw pet owners struggling with expensive imported medicines. He started buying in bulk from international suppliers and selling them at a better price.

When regulatory complications arose, we helped him get an e-commerce license in just two weeks. Starting with just $3,000 and a tiny online store from his place, Mohammad's first month only brought in three orders. But the word spread like wildfire through the vet community. People were reporting amazing improvements in their pets' health. By the third month, his sales had increased 400%. Today, Mohammad has a team of 12 people who supply products across the Middle East. Now, thousands of animals are living healthier lives. He took that first step and it's made a difference.
Could your vision be next?

Why Dubai is ideal for your e-commerce business

  • Low taxes: The Corporate Tax rate is one of the lowest in the world at 9%, with potential for 0% in certain cases. The VAT rate is also minimal at 5%.
  • Strategic location: Dubai sits at the center of a market reaching over 2 billion people—all within a 4-hour flight radius.
  • Benefits for foreign investors: Foreign investors enjoy 100% ownership rights in both Free Zones and on the Mainland.
  • Legal compliance: Operating under UAE laws, and English Common Law in some cases and using International Financial Reporting Standards (IFRS) enables seamless international business operations.

Do you have an idea for your e-commerce business yet? No? Try these ones

Identifying an unsolved pain point or issue is crucial when starting a business, especially in e-commerce. Then you're solving a specific problem that no one else has, you're delivering value to your customers and differentiating your business in a competitive marketplace.

Here are some e-commerce ideas and niches to find these problems and change the game.
For eco-conscious shoppers

  • Reusable bamboo products
  • Plastic-free packaging solutions
  • Solar-powered gadgets
  • Biodegradable household goods
For gift & expression

  • Custom family portrait services
  • Personalized jewelry
  • Handcrafted home décor
  • Subscription surprise boxes
For wellness enthusiasts

  • Traditional Arabic herbal remedies
  • Smart fitness trackers
  • Mindfulness apps & tools
  • Natural beauty products
For remote professionals

  • Standing desk converters
  • Productivity planners
  • E-learning platforms
  • Digital asset marketplaces
Starting a new business can be challenging. Whether it's a small venture or a large corporation, taking that first step is rarely easy.
movingo is an all-in-one platform for company formation, visas, and everyday legal matters in the UAE. We're here to help and ensure you don't encounter any roadblocks along the way. Check it out:

Starting an e-commerce business in Dubai: step-by-step guide

1
Create a business description
Write a detailed business description or business plan for your future company and send it to us by email.
2
We’ll schedule a call
Our expert consultants will review your business plan and schedule a call with you. We will understand your needs and create the best solution for your e-commerce business. Our goal is to help you save time and money during setup. We always give you at least two good options to choose from, so you can pick what works best for your business goals and budget.
3
You’re license will be ready within a week
Good planning is key — when we know what to do, things are done really efficiently.

What makes Free Zones in the UAE a perfect e-commerce business? Free Zone or Mainland?

The e-commerce market in the UAE is expected to grow at a rapid rate of 8.7% through 2028. Much of this growth is coming from companies in Free Zones. To understand why, let's compare the Free Zones to the Mainland:


Free Zones

Mainland

Ownership

100% foreign ownership

100% foreign ownership (excluding some regulated industries)

Visas

Limited visa quota depending on office size and Free Zone regulations.

More flexible visa quotas based on office space.

Cost

Generally lower cost to set up and operate.

Higher costs to set up and rent offices.

Regulatory control

Regulated by Free Zone authorities.

Regulated by the Department of Economic Development (DED).

Corporate Tax

Full tax exemptions for certain businesses, usually for up to 50 years, if you meet the requirements for Qualified Free Zone Person (QFZP) registration.

9% Corporate Tax rate, with the first AED 375,000 of taxable income being tax-free.

Trade restrictions

Can only operate within the Free Zone or internationally. Cannot directly trade with the UAE mainland without a local distributor.

Can do business anywhere in the UAE and internationally.

✅ Pros

- 0% personal income tax and Corporate Tax (if you meet all the criteria)

- custom duty exemptions on imports and exports

- world-class infrastructure and warehousing

- quick and easy setup process

- can operate anywhere in the UAE and internationally

- more credibility for local clients and government contracts

- unlimited visa eligibility (based on office size)

- no restrictions on business activities across the UAE

❌ Cons

- limited ability to trade directly in the UAE market

- some Free Zones have restrictions on what kinds of businesses you can do

- number of visas is limited depending on office space

- higher setup and operational costs

- requires a physical office space

- more compliance, including annual audits

👉 Best for

- e-commerce, consulting, and international trading companies

- startups and small businesses looking for a cost-effective setup.

- entrepreneurs who don’t need a physical presence in the UAE

- businesses that need to serve UAE customers directly (retail, restaurants, real estate, etc.)

- companies wishing to operate in the UAE without regional limitations

- investors who need unlimited visas and local market flexibility



If you need help with jurisdiction or anything else related to your business, give us a call. Let's set up a quick 15 minute call to talk about how you're doing and how to get started.

How much is it to start an e-commerce company in Dubai?

from AED 6,000

Costs vary by jurisdiction and your business needs. They include:
For a complete breakdown of future costs, see this article.

Benefits of a UAE E-commerce License

  • Global market access through world-class logistics infrastructure
  • Tax advantages, including 0% income tax in Free Zones
  • Versatile setup options (Mainland or Free Zone)
  • Secure, efficient payments through advanced payment gateways
  • Access to digitally-savvy consumers

E-commerce business FAQ

+971

What to read next

We hold useful webinars several times a month. Be sure to see what's coming soon.