Operate an eCommerce business from Dubai free zone - YourRetailCoach UAE

Mar 22, 2021

Advantages of cross border eCommerce

Advantages of cross border eCommerce


Dubai, United Arab Emirates Mar 22, 2021 (Issuewire.com) - With the rise of eCommerce retailing in the UAE, GCC, and the MENA region, should businessmen and entrepreneurs not consider operating their eCommerce business from one of the free zones of Dubai? These free zones offer a strategic platform for routing eCommerce business.

The infrastructural corridor in Dubai provides a big boost to the growth and development of the eCommerce industry in the region. And the freezones in Dubai have played a big role in encouraging and facilitating eCommerce business in the region. Free zones are areas for international business/trading and businesses registered here are considered as foreign companies or operating outside the UAE. International business is encouraged here in the form of quicker licensing, easy launch, softer customs regulations, tax exemptions, full repatriation of profits, access to high-end infrastructure and IT systems, etc. Initially, freezones were meant for domestic importers and re-exporters i.e. for business outside the UAE. But with the passage of time, serving the domestic market through local agents and distributors started becoming popular.

The majority of the freezones in the country are located in Dubai. DAFZA, JAFZA and DWC are considered the three best freezones in Dubai.  Dubai Airport Freezone Authority (DAFZA) provides business setup and operational services. JAFZA or the Jebel Ali free zone authority was the first free zone to be established in the UAE. DWC (Dubai World Central) remains the favorite among eCommerce retailers.

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In DWC, the customs duty and Bill of Entry (BoE) are exempted if the order value is below AED 1,000. For order value above AED 1,000, the applicable customs duty is AED 270. And there is no Bill of Entry and only customs duty is applicable for order value ranging between AED 1000 and AED 3000. The proximity to the Jebel Ali Port and JAFZA freezone also adds a feather of advantage to the DWC freezone.

The freezones in Dubai acts as a strong impetus for cross-border eCommerce. Businesses that want to cater to the domestic or the regional market can adopt the freezone route. The advantages are immense - easier and quicker business set-up and licensing, complete ownership, tax exemptions, and profit repatriation, relaxed custom duties, access to high-end IT, infrastructure, and logistics network, etc.

With domain expertise in retail and eCommerce, YRC (Your Retail Coach) offers a wide range of consulting services to help eCommerce businesses set up and manage their cross-border eCommerce business in Dubai. From 'concept' to 'implementation', YRC is dedicated to assisting their clients in building a sustainable and growth-oriented eCommerce enterprise with expert services.

The freezones in Dubai have proved to be a masterstroke for businesses and the host country's economy. International businesses, both domestic and foreign, have gained immensely from this strategic platform in serving the domestic and regional market. With eCommerce gaining a strong footing in the GCC and MENA region, it will be worthwhile to witness how online retailers utilize this platform for cross-border eCommerce.


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