The rapid growth of ecommerce in the Middle East region has gained a higher pace with the appearance of the Covid-19 pandemic. Due to the pandemic, people have to change their lifestyles to a large extent. Previously, people used to visit stores to shop for goods. But, they now use the internet to access various ecommerce stores and purchase products.
In 2019, the size of the ecommerce industry in the UAE was around $16 billion. After the pandemic, the growth has become rapid, and experts predict that the ecommerce economy in this country will rise 23% by the end of 2022. In such a scenario, many businesses show internet in ecommerce ventures in the UAE. If you want to launch an ecommerce website, you should procure the ecommerce license Dubai.
So, why should you start an ecommerce store in the UAE? Find the reasons for investing in ecommerce in the following section.
1. Taxation Benefits for the Investors
The attractive tax rates of the UAE magnetise investors across the world. Since 2018, the country has introduced only 5% of VAT (Value Added Tax) on the supply of products within the GCC region. On the other hand, the country imposes zero percent VAT on the export of the products. Thus, ecommerce businesses can supply products globally from the UAE at a lower price.
Ecommerce owners in Dubai do not have to pay personal income taxes, withholding taxes, and capital gaining taxes. Moreover, ecommerce businesses can also enjoy the exemption of corporate taxes under specific terms and conditions.
2. Business Infrastructure
One of the most significant reasons for investing in the UAE is the country’s infrastructure. The country offers advanced infrastructure support to ecommerce businesses. You will find warehouses in the most popular cities in the UAE. Besides warehouses, businesses can easily rent offices and physical retail stores in this country.
3. Availability of the Consumers
Ecommerce businesses flourish in places where the businesses can find consumers easily. In UAE, people from different European and Asian countries come for working and living. Therefore, the cities of this country represent the true essence of metropolitan culture. Online stores can become popular among consumers quickly.
Moreover, operating business from the UAE will help an online store reach consumers in the entire gulf region. Your business can reach around 2.5 billion potential ecommerce consumers.
4. Modern Banking System
A secured and modernised banking system is the pride of the UAE, and the banking system helps ecommerce businesses immensely. You can procure the ecommerce license in Dubai after opening a business bank account. One can apply for opening a bank account through online banking platforms.
5. Robust IT Support
Along with various business sectors, the IT sector has made significant progress in the UAE in the last few years. Therefore, ecommerce businesses can obtain IT support without hassles in this country. Small investors can find IT support at an affordable cost to start their ecommerce ventures.
So, these are the reasons why people should invest in the ecommerce sector of the UAE. The country offers many unique benefits to ecommerce investment enthusiasts.