What Lawyers and Consultants are Saying About the UAE’s New E-commerce Regulation

Sheikh Mohammed bin Rashid, Prime Minister and Ruler of Dubai, announced new e-commerce law this week. A new e-commerce law announced on Monday by Sheikh Mohammed bin Rashid, Prime Minister and Ruler of Dubai, will help boost the UAE's digital economy and contribute to the country's economic competitiveness, analysts have said. Sheikh Mohammed, who led a meeting of the UAE Cabinet, said that 11 new laws – including the e-commerce law – had been adopted as part of the continuous development of the federal legislative system. “The aim is to strengthen the legislative environment in the UAE and promote social stability, economic growth and better quality of life,” he said.

Market Context and Growth Projections

In recent years, the UAE’s e-commerce sector has grown considerably. The UAE’s e-commerce market is expected to reach $9.2 billion by 2025, according to the Dubai Chamber of Commerce, while the sector’s share of total retail sales in the Emirates is projected to reach 12.6 per cent by the same year, propelled by the country's high internet and smartphone penetration rate.

Expert Analysis of the New Framework

The UAE’s e-commerce law has been primed for a revamp for some time now, as the complexity of technology and the usage of e-commerce platforms has grown tremendously over the past decade. “This update will benefit both consumers and platforms who will be able to benefit from clearer guidelines and will definitely set the groundwork for future development of the sector in the coming decade,” said Nadim Bardawil, partner at BSA, a law firm. Consumers will be the first to benefit “as we expect to see clearer regulations surrounding how e-commerce platforms can interact with end users”, he added. In the long-term, the entire industry will benefit as well as all stakeholders that operate at different levels of the e-commerce ecosystem, including wholesalers, importers and technology service providers, according to Mr Bardawil.

Global Competitiveness and Legal Protections

The move is the latest in a series of legislative measures designed to enhance the UAE's regional and global competitiveness, according to Sandeep Dhama, partner at law firm Stephenson Harwood Middle East. “It's very encouraging to see the UAE continuing to pioneer strong regulatory frameworks across all its sectors, including in the area of e-commerce,” said Jack Hardman, partner at Clifford Chance. “We are fully confident that the Emirates will continue to develop a regulatory regime in line with global best practice to support and secure both development and legal protections for the e-commerce sector.”

As for the broader impact, the general implications of a new e-commerce law would revolve around consumer protection, business compliance, taxation, data protection, intellectual property rights, cyber security and the overall legal framework for online transactions, according to Nabeel Ahmed, partner at DVS Management Consultancy. The UAE's new law catering to the e-commerce sector will “usher in a conducive environment that will focus on growth prosperity and security”.