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. Known as Federal Decree Law No (14) of 2023 on Commerce through Modern Means of Technology, 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.
Strategic Objectives and Vision
The 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. It has been designed to enhance the business environment in the country by facilitating the conduct of business and contracting, enhancing its efficiency, reducing the cost of doing business, and enhancing stability. Furthermore, the UAE is steadily transitioning to a “new economic model” that has resilience, innovation and entrepreneurial thinking as its key pillars.
Market Growth and Economic Impact
The UAE is the most advanced e-commerce market in the MENA region. Momentum within the UAE’s e-commerce sector is being supported by rising demand for online shopping and steady investment flows in the sector’s infrastructure. The new legislation comes amid strong growth, as the UAE's e-commerce market is expected to reach $9.2 billion in 2026, up by about 92 per cent from 2021.
| Metric / Forecast | Value | Source |
|---|---|---|
| E-commerce market (2019) | $18.5 billion | Jollychic |
| Projected e-commerce sales (2022) | $27.1 billion | Fitch Solutions |
| Forecasted market size (2026) | $9.2 billion | Dubai Chamber of Commerce |
| Annual online shopper spend | $3.5 – $4 billion | Gulf News |
Eligibility and Legal Requirements for Merchants
The new law clarifies the eligibility criteria that must be met for an entrepreneur to start an e-commerce business in the UAE. These include the following essential standards:
- 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 requirements and standards of cyber security and combating piracy as required.
Additionally, 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.
Consumer Protection and Future-Proofing
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. One of the important provisions of the law is that it “legally authorises” trade conducted through e-commerce, making it similar to conventional trade. Furthermore, the new law takes “future developments into account and therefore does not limit the provision of trade to a specific technological means such as digital, or even blockchain, but covers any current or future modern technological means”. One of the provisions of the e-commerce law is that it provides “optional jurisdictions for dispute resolution, including arbitration”.
