Demand for Dubai's e-commerce licences jumps 63% in first half of 2021

Dubai recorded a 63 per cent surge in the number of e-commerce business licences issued in the first half of the year, as the pandemic-induced consumer demand for online shopping continues to grow.

Dubai Economy issued 3,243 DED Trader licences during the first six months of 2021, up from 1,989 licences in the same period a year ago, it said on Saturday.

IT topped the list of licensed activities, followed by ready-made garments, ladies tailoring and design, handicraft workshops, gents tailoring and design, food preparation, commercial brokerage, exhibitions and other professional services.

Male entrepreneurs accounted for the highest share, 63 per cent, of the total DED Trader licences issued during the first half of the year, the government body said.

This type of licence was first issued by the emirate’s Department of Economic Development's Business Registration and Licensing section in 2017, allowing business activities online and across social networking accounts.

The licence aims to promote e-commerce and economic competitiveness, drive digital transformation and facilitate commercial activities digitally.

The DED Trader licence can be obtained electronically on the invest.dubai.ae portal.

“Through DED Trader, Dubai Economy seeks to regulate and enhance the ease of doing business electronically, while also offering a platform that supports and develops trade as well as connects customers with traders,” the government body said. “The licensee cannot open a shop/store but can avail of three visas if the ownership is 100 per cent Emirati and legal liability falls on the licence holder.”

Dubai Economy is providing support to the DED Trader licence holders by signing partnerships with government and private sectors, providing facilities for their business growth as well as opening new channels by enhancing co-operation with major sales outlets.

It partnered with noon.com, the Dubai homegrown digital marketplace, to connect local start-ups with customers across the region through its Mahali digital store. Mahali by noon.com is a programme designed to offer Emirati start-ups with digital business support and expertise to grow their businesses online.

Dubai Economy has also partnered with MyFatoorah to facilitate e-payments for transactions related to DED Trader licences; Talabat to display and sell food items through its platform and with Akshaak marketplace to display and sell products of DED Trader licence holders online for free.

Opting for a DED Trader licence provides benefits such as Dubai Chamber membership, bank facilities, temporary employment services, participation in exhibitions and conferences, access to training workshops and the provision of workspace, the department said.

Online retailers are expanding their product ranges to attract customers during the Covid-19 pandemic.

The value of the UAE’s retail e-commerce market rose 53 per cent to a record $3.9 billion in 2020, largely driven by the digital shift in consumer shopping habits amid the Covid-19 pandemic, according to a June report by Dubai Chamber of Commerce and Industry. E-commerce accounted for 8 per cent of the UAE’s overall retail market last year, the report added.