Without a doubt, social media has a strong power in the business world. When you hire multiple people, this allows you to conduct a complete online business. As a result, the government is required to regulate online businesses. The UAE authorities have launched the e-commerce license to achieve this goal.
In this article, you will learn everything about the e-commerce license in Dubai. Online businesses that want to sell on various social media sites will need to apply for this permit in order to be formally recognized as legitimate businesses. Let us observe:
1. An overview of the UAE and social media
2. Getting an e-commerce license in Dubai
3. The benefits of selling on social media in Dubai
4. How can Connect Group help you?
1. An overview of the UAE and social media
1.1. The use of the internet in the United Arab Emirates in 2022
- In January 2022, the United Arab Emirates had 9.94 million internet users.
- At the start of 2022, the internet penetration rate in the UAE was 99.0 percent of the total population.
- According to research, internet users in the UAE increased by 95 thousand (+1.0 percent) between 2021 and 2022.
- To put the previous point in context, these user figures show that 100.4 thousand people in the UAE did not use the internet at the start of 2022; representing 1.0 percent of the population.
- However, because COVID-19-related issues continue to influence internet adoption research, actual internet user figures may be higher than these published figures suggest.
1.2. The United Arab Emirates’ internet connection speeds in 2022
According to research, internet users in the UAE could have anticipated the following internet connection speeds at the start of 2022:
- The average cellular internet connection speed is 136.42 Mbps.
- The average fixed internet connection speed is 103.71 Mbps.
According to data, the median mobile internet connection speed in the United Arab Emirates increased by 29.55 Mbps (+27.7 percent) in the twelve months leading up to the beginning of 2022. Meanwhile, fixed internet connection speeds in the UAE increased by 26.98 Mbps (+35.2%) during the same period.
1.3. Statistics on social media in the United Arab Emirates in 2022
In January 2022, the UAE had 10.65 million social media users. At the beginning of 2022, the number of social media users in the UAE was equivalent to 106 percent of the total population; nevertheless, it is important to note that users on social media may not represent unique individuals.
According to recent statistics, social media users in the UAE increased by 810 thousand (+8.2 percent) between 2021 and 2022.
1.4. Users of Facebook in the United Arab Emirates in 2022
According to data published in Meta’s advertising resources, Facebook had 7.20 million users in the UAE in early 2022. However, at the end of 2021, Meta made significant changes to how its advertising resources report audience reach data; including significant revisions to its base audience data for Facebook.
The figures shown here are not directly comparable with the figures published in our previous reports. According to the company’s revised audience figures, Facebook’s ad reach in the UAE at the start of 2022 was equivalent to 71.7 percent of the total population.
However, because Facebook restricts the platform to use to people aged 13 and up, it is also worth noting that 82.5 percent of the “eligible” audience in the UAE uses Facebook in 2022. In January 2022, Facebook’s ad reach in the UAE was equivalent to 72.5 percent of the local internet user base (regardless of age).
At the beginning of 2022, 27.3 percent of the UAE’s Facebook ad audience was female; while 72.7 percent was male.
1.5. Users of YouTube in the United Arab Emirates in 2022
According to Google’s advertising resources, YouTube had 9.06 million users in the UAE as of early 2022. This figure means that YouTube’s ad reach in 2022 was equivalent to 90.3 percent of the total population of the UAE at the start of the year.
To put those figures in context, in January 2022, YouTube ads reached 91.2 percent of the UAE’s total internet user base (regardless of age). At the time, females made up 27.8 percent of YouTube’s ad audience in the UAE, while males made up 72.2 percent.
1.6. The number of Instagram users in the United Arab Emirates in 2022
In accordance with data from Meta’s advertising tools, Instagram had 5.25 million users in the United Arab Emirates in early 2022. According to this figure, Instagram’s ad reach in the UAE was equivalent to 52.3 percent of the total population at the beginning of the year.
However, because Instagram only allows people aged 13 and up to use its platform, knowing that 60.2 percent of the “eligible” audience in the UAE uses Instagram in 2022 is useful.
It is also worth noting that at the start of 2022, Instagram’s ad reach in the UAE was equivalent to 52.8 percent of the local internet user base (regardless of age). In early 2022, 38.1 percent of the United Arab Emirates’ Instagram ad audience was female, while 61.9 percent was male.
1.7. TikTok users in the United Arab Emirates
According to data published in ByteDance’s advertising resources, TikTok had 6.72 million users aged 18 and up in the UAE in early 2022. It should be noted that ByteDance’s advertising tools allow marketers to target TikTok ads to users aged 13 and up, but these tools only show audience data for users aged 18 and up.
ByteDance data show that TikTok ads reached 81.3 percent of all adults aged 18 and up in the UAE at the start of 2022. Meanwhile, TikTok’s ad reach in the UAE was equivalent to 67.6 percent of the local internet user base, regardless of age, at the start of the year.
In early 2022, females made up 29.4 percent of TikTok’s ad audience in the UAE, while males made up 70.6 percent.
2. Getting an e-commerce license in Dubai
When compared to the rest of the business trade licenses available in Dubai, the steps required to obtain an e-commerce license are relatively simple. However, if this is your first time starting a business in the UAE, you will be better off with the assistance of someone more experienced.
Hence, our company setup experts are always ready to assist you in obtaining an e-commerce license in Dubai so that you can begin selling through social media sites. Here are the steps you must take to obtain it:
2.1. Choose a legal structure
You have several options to choose from when you are deciding on the legal structure of your company. The legal form you choose will determine the regulations your business will be subject to.
It is recommended that you carefully select the legal form of your business. Sole proprietorship, general partnership, civil company, limited liability company, and other popular legal structures
2.2. Choose your commercial activities
After receiving your e-commerce license in Dubai, you must choose which business activities you want to pursue. After completing the registration process, you can only engage in the business activities that you have previously selected.
Pick your activities carefully, and do not pick any that you will not be doing later. The reason for this is that you will need to obtain external approvals. These approvals must be based on the business activities you intend to carry out.
2.3. Register your company’s trademark
They require you to register a trading name for your company. You can use some online tools to determine if somebody else has already used the name you are thinking of using. The name may be in use elsewhere, but as long as it is not in use in the UAE, you may use it.
Additionally, you must follow some rules and criteria when selecting a trading name. For instance, you cannot use racial or religious slurs in the trade name.
2.4. Obtain the first approval
Firstly, you have to deal with officials from Dubai’s Department of Economic Development at the beginning of the registration process. It is important to note that these are critical steps; so, if you make a mistake, it can result in costly setbacks.
That is why, if you have little experience starting businesses in the UAE, it is advised that you seek the assistance of experts. You need to complete an application that includes all of the basic information (about you and your business); this is to obtain the initial approval.
2.5. Rent a virtual office space
Companies have to provide a tenancy contract and the EJARI. This must be before the Department of Economic Development in Dubai issues any business trade licenses. You will need to look for a virtual office space in Dubai. This is because your business will be online.
Nevertheless, in case you need to conduct physical operations, you can choose from among the many affordable physical office options available in Dubai. In addition, we at Connect Group offer the best real estate services in the UAE. In this way, can get you a great executive office, among many others.
2.6. Obtain outside approvals
Depending on the nature of your business and the type of office you choose; you will require a few external approvals from various government bodies and agencies. For instance, if you have decided for a physical office space; then you need to get it approved by the Planning Section of the Dubai Municipality.
2.7. Submit the required documents and fees
Last but not least, the Department of Economic Development in Dubai requires some important documents before issuing you an e-commerce license. They will provide bank account information where you can pay the license fees.
If everything checks out, they will issue you a UAE e-commerce license within a few days. You are free to carry out your chosen business activities once you have obtained the license.
3. The benefits of selling on social media in Dubai
In today’s business world, selling via social media has numerous advantages. A presence online is required for businesses in certain industries. Many previously large businesses are now out of business because they were unable to make the transition online.
When you establish a social media presence, you gain access to a large audience, which translates to a larger customer base. Selling through an online medium in Dubai, in particular, has its own set of advantages.
The government, for example, has issued an online business license or an e-commerce trade license. Businesses that obtain an Ecommerce license will be eligible for a variety of government benefits and perks. The e-commerce license makes it easier for businesses in Dubai to sell through social media sites. If you would like to learn how to open an e-commerce business in the country, you can read this article.
Here are some of the benefits of social media business in Dubai:
- You can own 100 percent of your company. That means you will not have to look for local sponsors in Dubai to help you start a business.
- The social media license allows you to easily register with the Dubai Chamber of Commerce and import and export from the country.
- You can increase your customer base by promoting your products online.
- With an e-commerce license, you can easily open a bank account here.
4. How can Connect Group help you?
Nowadays, the Internet is a great place to do business. Without a doubt, it offers a lot of benefits. However, as you already know, you will need a UAE e-commerce license for selling on social media.
If you want to sell on social media in Dubai and need a trade license or an e-commerce license, we will help you. Our experts will assist you in obtaining an online business license and selling on media.
Our licensing services will assist you in obtaining all the permits you need to operate in the UAE. In addition, we offer you an extensive range of solutions for your company to thrive, such as the most excellent business consultancy.
Do you need guidance? Please contact Connect Group today to get more details about the e-commerce license in Dubai. This is our contact information: +971 43 316 688 – contact@connectgroup.co. In case you have any questions, feel free to reach out!
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