What you need to know about the UAE’s new e-commerce law

The Ministry of Economy has detailed provisions of its new e-commerce law that came into effect in September and is aimed at boosting the investment attractiveness of the Emirates and enhancing its economic competitiveness. The legislation replaces the preceding law of 2006, which was focused more on electronic transactions rather than e-commerce. “The new law is particularly important as it is the main federal legislation governing e-commerce in the UAE,” the ministry's undersecretary Abdullah Al Saleh said recently.

Overview of Federal Decree Law No (14) of 2023

Known as Federal Decree Law No (14) of 2023 on Commerce through Modern Means of Technology, the new law “aims to stimulate the growth of trade conducted through the means of advanced technologies and the development of smart infrastructure in the country”, according to the ministry. The legislation aims to enhance the country's position as a global centre for the new economy.

Strategic Objectives

The UAE is steadily transitioning to a “new economic model” that has resilience, innovation and entrepreneurial thinking as its key pillars. The law forms part of the integrated legislative updates undertaken by the UAE government to accelerate the transition towards a new economic model and achieve higher levels of competitiveness. It has been designed to enhance the business environment in the country by facilitating the conduct of business and contracting, enhancing its efficiency, and reducing the cost of doing business.

Eligibility Criteria for Online Businesses

The new law clarifies the eligibility criteria that must be met for an entrepreneur to start an e-commerce business in the UAE. These requirements include:

• Compliance with all legal, regulatory, professional, and technical requirements.
• Approvals, permits, and licences from the competent authority for conducting business.
• A secure technology infrastructure for offering e-commerce services.
• Compliance with the requirements and standards of cyber security and combating piracy as required.

Merchant Obligations and Consumer Protection

One of the important provisions of the law is that it “legally authorises” trade conducted through e-commerce, making it similar to conventional trade. It elaborates on the relationship between merchants as well as that between digital merchants and the consumers. The law allows merchants to sell only goods and services that are legally allowed to be sold in the country. Also, it is now mandatory for merchants to issue a detailed digital invoice for purchases to customers.

Protecting Consumer Interests

The law has also made provisions to protect consumer interests, in terms of safeguarding intellectual property rights. It includes measures to enable consumers to buy goods and services safely, as well as to regulate the refund and exchange process. The legislation also organises digital payment gateways in co-ordination with the relevant entities in the UAE.

UAE E-Commerce Market Forecast and Trends

The new legislation comes amid strong growth in the UAE's e-commerce market, which is being supported by rising demand for online shopping and steady investment flows in the sector’s infrastructure. Research provided by IMARC Group and the Dubai Chamber of Commerce highlights the following data:

• Market Size in 2024: USD 125.0 Billion
• Market Forecast in 2033: USD 776.2 Billion
• Market Growth Rate (CAGR 2025-2033): 21.4%
• Projected E-commerce Share of Total Retail Sales (2026): 12.6%

The Role of Data Centers

The market is driven by the growing number of data centers, which provide improved security methods to secure critical customer and transaction data. This greater security promotes customer’s confidence in online commerce, resulting in higher adoption rates. Data centers provide scalable infrastructure, allowing e-commerce enterprises to expand their operations without substantial delays or inconvenience. Additionally, the proximity of data centers can reduce latency, resulting in speedier load times for e-commerce websites and applications.