We witness rapid progress inaccessibility of internet facilities because telecom industries provide them at competitive rates and better connectivity than what we used to get even 6-7 years back. Coupled with it is the availability of high specification smartphones, tablets, laptops, and computers. They together have brought everything in our fist that is of the consumers who are daily indulging upon the wide range of possibilities offered by our very dear internet with one click. We are in a world where we get almost everything that money can buy, including knowledge, products, and service.
Wise knows to wash hands in running water. We see the wisdom of business people who have tapped the potential of the internet and online market to expand their businesses and make their products and services available at doorstep.
UAE has matched its steps with its European and Asian counterparts and has started exploring the online business market. As Covid hit us unprecedentedly towards the beginning of 2020, we found a massive splurge in numbers related to the online market.
People are not coming out of home, digital dependency increased. The Dubai chamber of commerce and industry has brought to the front the statistical data that the retail e-commerce market of UAE has accelerated by 53% as compared to previous years, and the market was $3.9 billion in 2020.
If an online business has been in your mind for quite some time and you are looking for perfect opportunities to start, then friend, this is the ideal time to launch your own business successfully in the UAE.
Benefits of starting online:
Time in today’s world has been more precious than before. Fear of being left out is excellent. As our economy is changing.. To cater to the needs of modern customers, you will have to be dynamic and fluid in your approach. Then only can you make progress in your enterprise? Here are some reasons which might lure you to try an online business in the UAE.
UAE online market is growing at galloping speed:
Covid 19 pandemic has contributed significantly and has widened the consumer base and diversified the product and service needs. So, if you start now, the chances are that you will be sure to succeed as the market is still at its developmental stages. Success means better sales, handsome profit, and business growth.
Expansion in consumers’ demand:
Earlier, people mostly shopped for clothes, jewels, books, and electronic gadgets, mainly unrelated to essential commodities. But now, people are looking up to the online market for necessities, health care, education, consultancy, personal services, and whatnot. You can seize this moment to supply things that consumers demand and earn a foothold in the market. The consumers are technologically equipped and are savvy shoppers now.
Rising per capita income:
People have a significant amount of money to circulate in the economy and are ready to pay you for availing of facilities. So, grab the moment.
Low capital investment and low cost to operate:
UAE provides 100% ownership in free zones as well as in Mainland now so that you can set up your business and have full control over it. Here you are delivering goods and services at your customer’s doorsteps so you can operate efficiently from free zones or even from the comfort of your home if you have space to do business. The taxes are not high, and it is easy to set up a business.
Profit is high:
Profit is 100% repatriable in the UAE so that Foreigners can take all the profits without the administrative hassle.
What are the best online business ideas to start within the UAE?
Multiple areas provide you with the scope to open an online business in the UAE. Moreover, they offer good prospects to you to venture into this line.
Sell essential commodities:
Groceries, food supplies, raw flesh, cooked food delivery, clothes, and medicines are now high in demand. The advantage of such items is that there will be a constant demand for such things, so people will keep ordering occasionally and add to your profit.
Set up online educational institutes and start online courses:
This idea is for those who have a brain and learning as their capital. It does not require much to start. The investment can be in good connectivity and infrastructure to conduct classes smoothly. You can take after-school courses, prepare for admission tests, teach a new skill, conduct workshops, start fitness classes, etc.
If you are an expert in your field, start consultancy:
People are always seeking guidance and need someone to show them the correct path. You can be a dependable consultant who can guide you. You can set up the educational, financial, stock market, real estate, and other consultancies in which every field you can feel comfortable.
Develop apps:
Apps are our go-to in today’s life. We cannot survive without it. If you are good at operating systems and acquainted with different programming languages, you can build apps as per relevance.
If you are a multilingual speaker, you can start translation:
People worldwide have made their residence in the UAE, which requires a middle man for translation and communication. Therefore, it gives you a perfect cost-free business opportunity.
Provide home-based services:
From time to time, people may require cleaning services, electrical services, beauty services, car services, and others for which they hire people to do work from them. It gives you good chances to earn money.
Create a portal to search for employment:
UAE welcomes thousands of people every year who come to earn their livelihood. You can create a portal for them to search for jobs according to their skills and qualifications.
Digital marketing and affiliate marketing:
With the upsurge in business and brands, everyone wants to be a stand out in the crowd. So they are looking for innovative ideas to sell their products and social media Advertising services. Marketing is a game-changer in the sale, and with an increase of digital platforms, people have got a new place to promote themselves. You can help them to promote their brand and earn a handsome income. Affiliate marketing involves the promotion of products of brands and instead earns commissions. If you are popular on various social media platforms, you can try this out.
How can you set up your online business in the UAE?
You need to follow a few steps to set up a business online.
Jurisdiction selection:
First of all, you will have to select a jurisdiction. There are two jurisdictions. One is the free zone, and the second one is the mainland zone. Suppose you are selecting a free zone for your business. In that case, It can be restricted to a particular area, and you will have to take the help of a local agent with the same business activity to conduct business. If you set up your online business in the mainland zone, you will get accessibility in the local market. If you are working from a free zone, you will have less tax burden, you can get exemption from customs, there will be no restriction on currency, and you will be able to take home a hundred percent of your profit.
Identity of your business:
Identifying a business is very important before doing anything. You need first to understand the nature of a business. If a company falls in a particular category, then a specific set of rules and laws are implemented. For example, different businesses require different licenses and documents. However, some laws and documentation processes could be similar for all business types. Now you need to get the business license for your business. Once a permit is ready, you can go live.
How can I get an online business license in the UAE?
If your business is in a free zone, you will have to apply for a license to concern free zone authority and for operation in the mainland, DED sanctions the trade license.
There are other licenses which you will require. However, these are the ones you need apart from the main ones common for all types of businesses.
Web Portal:
Web Portal mainly requires when your company acts as an intermediary between buyer and seller.
E-commerce license:
This license is required to conduct business online in the UAE. You will have to apply and make a payment to get the permit.
Commercial or service license:
Suppose your business involves the import and export of goods and services in and out of the UAE. Then you require a commercial license. In this way, you can conduct business on a local and global scale.
Opening of a bank account:
It is the next step where you have to open a bank account to conduct your business.
Design your website and launch:
It is one of the essential requirements of running a successful business in online mode. It is your spokesperson in front of your customers.
Even while the website is under construction, create a buzz for your business through promotions in social media to make the customers feel your presence and curious to see what you are offering.
Things to keep in mind while designing your website:
The website should have a user-friendly interface with proper categorization for easy navigation.
It should look aesthetically pleasing to lure the customers. In addition, there should be an interactive model of communication to give a natural marketplace feel.
The website should be in English and also in Arabic. However, if you target international customers from other countries, you can provide other language options.
The online store should have various options to give your customers a plethora of choices at the beginning itself.
Provide options for user-friendly payment gateways to facilitate easy payment.
Payment gateway integration:
For online transactions, there should be secure gateways. The customer will fill in necessary details, which are very personal such as credit /debit card number, expiry date, and CVV, UPI. Cash on delivery can also be kept as an option if you can afford to do so.
Some operational payment gateways are:
- CC Avenue
- Checkout
- Cash
- Payfort
- Telr
Chat tools:
A chatbot is the best idea to integrate to answer the customers’ queries and guide them in selecting and buying products.
Arranging for logistic facilities:
Another crucial point to look for is that online businesses are entirely dependent on logistics to deliver their products to customers. Therefore, its efficiency is what will make your business a success. The logistics companies with which you are tying up should be able to all parts of UAE.
- Top logistics companies in UAE:
- Global Shipping & Logistics
- Al-Futtaim Logistics
- RAK Logistics
- Jenae Logistics LLC
- Emirates Logistics LLC
- UKR shipping LLC
- KSL logistics
- Redline International Services LLC
- Etihad Store Logistics
- Royal Gulf Shipping
Marketing your products:
Marketing is vital to find potential customers for your business. Even if you give the best of products and services, your business can’t grow if its knowledge doesn’t reach the customers. It helps to increase traffic to your website or online store.
Appointing specialists in marketing can help you gain insight, and they can build and run campaigns on your behalf. In addition, you can expect growth in business from the beginning itself if you focus on marketing. Social media platforms like Facebook and Instagram (here you can integrate your product catalogs), Twitter, YouTube, and other networks can prove a powerful tool to communicate with your customers and familiarize them with your presence.
Influencers with a good number of followings can promote your brand and can bring you customers. Though it’s challenging to succeed quickly, consistent marketing and delivering quality products will amplify your growth.
You can engage bloggers to run a blog for you, letting people know about your products and creating curiosity in trying them.
Email and messaging to send information about launches and offers alert customers about what is going on in your business.
Give deals, free offers, coupons, discounts, exchange products, rental products, post-purchase services to increase sales.
Search Engine Optimization can be a game-changer in your business. Though it demands time and effort, it is ultimately fruitful for your business to reach newer dimensions by increasing visibility. Moreover, you can give ads in Google Ads.
Free zones for online activities:
When you are starting an online business, then you must know the free zones in UAE. Starting a business in a free zone area will always have an extra privilege but first, let us tell you what the best free zones available in UAE are:
- Dubai Multimedia Commodity Centre
- Jebel Ali Free Zone
- Sharjah media city
- RAKEZ
- Umm Al Quwain
- Ajman free zone
- Ajman Media City
- Dubai Media City
- Dubai Silicon Oasis
- International Free Zone Authority
Cost of starting an online business in UAE:
The investment in online business in UAE depends on what you will sell, whether you will work from home, rent an office, warehouse, logistic facilities, licenses, administrative charges, visas.
In free zones, the charge of setting up a business is less, and to incorporate there, It will start from AED 20,000/-, whereas in the mainland, it will start from AED 100,000/-. So, if you are choosing to set up a business, choose wisely.
The cost of an e-commerce license differs from place to place. For example, it is around 5750-7750 AED in a free zone and 8500 AED in the mainland in Dubai.
Here are a few frequently asked questions when you want to start a business online in the UAE.
Is it legal to sell online in the UAE?
Yes, it is legal to sell in UAE, provided you have the proper license. If you don’t have an appropriate trade license, your business will be considered illegal, and you will be severely penalized.
Do I need a license to sell online in the UAE?
If you are selling online or offline, you need a license for sure. That gives validation to your business and legalizes it.
Challenges one might face:
Though an online business might seem like an excellent opportunity to diversify your goals quickly, there are few challenges you need to tackle in the development of your business.
Gaining the confidence of the customers:
At the very beginning, customers will be skeptical about trusting your website. They might be doubtful of the quality and delivery of the products. They may hesitate in giving a try to your products. The main fear can be that their money is in danger. But worry not. Transparency and a good customer support facility where customers can approach you freely with their doubts and problems will help you gain trust.
The stiff competitive market:
The market is already competitive with businesses that are trying to gain their foothold. The competition will not be accessible in such cases when sellers are providing the same kind of products for sale. Therefore, you will have to be unique in your product and your approach to business. A proper marketing strategy can help you gain in the online business market.
Online payment:
It is a big challenge as regards safety and security. The data of consumers is highly personal, and there is always cyber risk looming on the head.
Delivery:
Delivery is the backbone of e-commerce. But, unfortunately, the number of logistics companies is insufficient for quick disbursal of goods, and there is a lack of warehouses.
