The UAE’s Online Business Industry
We cannot get enough of the marvelous infrastructure and the beauty the mega malls in UAE have to offer, therefore when a debate about Dubai’s online business industry pops up, it all sounds a bit pointless. If that is the case, the facts outlined below will astonish you.
You cannot hide from the fact that the UAE has reached great heights over the years, in every sector, from tourism to industrial and commercial, but what is ahead is more promising. Since the uprising of the ecommerce concept, most businesses have opted out of their brick and mortar setups and into the online world. UAE has become the ecommerce leader amongst the GCC countries, with a worth of US $5.3 billion, according to Frost & Sullivan, a market research firm. The ecommerce industry is expected to grow to US $10 billion by 2020, which is why it is one of the best times for an online business setup in UAE.
Residents of UAE do not look towards global ecommerce giants like Alibaba or Amazon, since the country has now established its own online business industry that has grown by 1500% from the past decade. Some of the major reasons why the UAE has surpassed online business growth expectations are mobile penetration and robust internet. A recent study conducted by Google revealed that UAE lead Global Smartphone Penetration with 73.8% while the internet usage statistics revealed that 91.9% of the residents had internet access. Another survey by AWOK.com revealed that Dubai leads with online shoppers in the UAE, with 46%.
Since the UAE has become the center of attention for the world, most businesses are turning to the UAE for growth and prosperity. While local businesses are still reluctant and find the online / ecommerce channel to be overrated, foreign conglomerates and medium sized businesses have the opportunity to take advantage of the booming online business industry. According to one of UAE’s financial institutions, one of three residents makes an online purchase every week, which hints the investors of the potential to grow their business.
The recent acquisition of Souq.com by Amazon for a whooping US $580 million has been making headlines for the past year, but the fact that a company like Amazon has made the move gives entrepreneurs a more promising future. Digital Monday and White Friday have become one of the biggest online shopping events in the UAE, and not able to get it on the action means you are losing out on a lot.
If you want a firm business setup in Dubai, one of the world’s leading online business industries, you can choose to setup a business in the free or non-free zone. In the free zone, you will have 100% repatriation of profits, 0% income and corporate tax, and complete business ownership. All of it makes the UAE a lucrative destination for online business setup. On the other hand, you can also choose to setup your business in the non-free zone in which case you will have to contact the Department of Economic Development (DED).
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