Online sales and e-commerce in the UAE

If you have a software product, a service that can be delivered from abroad or a physical product that people don’t mind waiting for, you can do business internationally directly from your own country. 

This is also valid for Dubai and the United Arab Emirates if you keep in mind that you will have to adjust your marketing. You may have to make translations and accept different currencies, and for physical products you have to manage the whole shipping and customs process.

Where it all starts: select a target group

As counts for any country: you first have to define the target group that you want to sell to. If these are businesses, then you can reach out directly through emails and targeted advertisements, e.g. on LinkedIn. If this arouses interest and gives a sufficient response rate, then you may have found an easy way to get the market’s attention. 

If your target group is more diffuse, or is a consumer group, then you have to rely more on advertising such as on Facebook or Instagram.

Convince potential distributors

A local consultant can find possible business partners, or you have identified them yourself. But how to convince them to market and sell your products or services?

For this you need an export plan with a clear strategy and sufficient financial details.

Translate your website and check your SEO

Even if your business is really international, it may be wise to set up local website translations and check whether your text aligns with the culture. 

This also counts for Dubai and the United Arab Emirates where people prefer reading in their own language and also search most of the time in their own language. Therefore you need to include the relevant keywords in your texts, and these may not be a direct translation.

With regards to content, my personal experience is that if you have a successful blog topic in one language, it is likely to do well also in other languages. Don’t reinvent the wheel, just make a proper translation.

Translate your Wordpress site with WPML

For targeting a country you may need website translations that go beyond Google translate. You can do this with WPML.

WPML is a Wordpress plugin that helps you set up different translations of your web pages. This can be with automated translations, but you can also choose to have manual or adjusted translations or even specific content on the language pages.

Enable local payment

Customers who see prices and can pay in their local currency are three times more likely to deal with you. So it makes sense to offer this option.

Also for Dubai and the United Arab Emirates offering local payment methods is recommended. Of course there are different options, but the easiest first step is to use credit or debit card payments.

Credit card payments typically work best up to an amount equivalent to 500 USD or EUR. If the invoicing amount is higher, there often is a different internal procedure required.

Use Stripe for collecting your money

With Stripe you can offer payment methods in over 45 countries, including Dubai and the United Arab Emirates.

Stripe combines various payment methods available in a country, even including direct bank payments and after pay. This way the barrier for your clients to do business is low.

The e-commerce market in Dubai and the United Arab Emirates

The United Arab Emirates (UAE) e-commerce market is experiencing rapid growth and is poised to become a major hub for online retail in the Middle East. Here are some key details about the UAE e-commerce landscape:

1. Amazon.ae

Market Share: Dominant player in the UAE e-commerce market

Focus: Wide range of products across all categories

Amazon.ae, formerly Souq.com, offers a vast selection of products and leverages its advanced logistics network. The platform’s Prime service and customer-centric approach have contributed to its popularity among UAE consumers.

2. Noon.com

Market Share: Major local competitor to Amazon

Focus: Electronics, fashion, and home goods

Noon.com has quickly established itself as a significant player in the UAE e-commerce market. Backed by local investors, it offers a mix of international and regional brands, catering to local preferences.

3. Carrefour UAE

Market Share: Leading online grocery platform

Focus: Groceries and household items

Carrefour’s online platform has gained traction, especially in the grocery segment. Its established brand presence and efficient delivery services have made it a popular choice for UAE residents.

4. Namshi

Market Share: Prominent fashion e-tailer

Focus: Fashion and lifestyle products

Namshi specializes in fashion and accessories, offering a curated selection of local and international brands. Its focus on trendy, affordable fashion has made it popular among younger consumers.

5. Sharaf DG

Market Share: Leading electronics retailer

Focus: Consumer electronics and home appliances

Sharaf DG has successfully transitioned its strong offline presence to the online space. It offers a wide range of electronics and provides competitive prices and after-sales services.

The UAE e-commerce market is projected to reach USD 18.99 billion by 2029, growing at a CAGR of 11.52% from 2024 to 2029. Key factors driving this growth include high internet penetration, a tech-savvy population, and government initiatives supporting digital transformation. The market is characterized by a shift towards mobile commerce, increasing adoption of digital payments, and a focus on customer experience and convenience.

Get funding from banks & investors

Entering a new market is an investment. Finding partners, contracts, translations and marketing costs money and you may need additional working capital.

Only with a good plan with enough financial data you can convince banks and investors to fund you. We help you with the complete business case and documentation.

Shipping your products

If you sell tangible products, you need to get them delivered into Dubai and the United Arab Emirates but depending on the country you are in, this can be a challenge.

First of all you may have to pay import duties or settle VAT. There are certain thresholds for both of these charges, e.g. while importing in the EU you don’t have to pay import duties on any shipment worth less than € 150. 

There may also be non-financial bariers, like certifications or approvals to be obtained. Especially for food, cosmetics or medicine this may be the case. Check this in advance, even before you invest in your marketing.

Frequently asked questions

The best way to find an importer in Dubai and the United Arab Emirates is to understand the sales channel for your product, and what parties are involved. Then find the right importers or wholesalers at the beginning of that chain. Before starting to push your product, approach a number of them to ask what they need. This way you can position your product better before you reach out to a broader group.
First check whether your product normally is sold through web shops in Dubai and the United Arab Emirates or that other distribution structures are more common. Then determine the characteristics of your ideal web shop, and find a number of these, or outsource this search. When you approach the first few, you will learn what they find important and who your competitors are.
As in any country, convincing an importer or wholesaler to put your product in his assortment is difficult. Also in Dubai and the United Arab Emirates importers look at the rotation of the product, how easy and often they can sell it, and multiply this with the margin they can make on it. The result should be higher than they earn now from any competing product. Only if you have proper sales data, for example from other countries, they will engage in a discussion with you.