Dropshipping is an e-commerce business model where you sell products without having to carry any inventory. When a customer places an order on your website, you simply contact your supplier, who will then ship the product directly to the customer. This means that you don’t have to worry about storing products, packing and shipping orders, or dealing with returns. Dropshipping in UAE has become increasingly popular due to its low startup costs and the ability to reach a wide customer base without the need for physical storage space. With the growing e-commerce market in the region, setting up a dropshipping business in UAE can be a profitable venture.
The dropshipping in UAE is a good market for a number of reasons. The UAE has a growing e-commerce market. In 2022, the UAE e-commerce market was valued at $27.2 billion, and it is expected to grow to $46.8 billion by 2027.
Dropshipping is a great way to start an e-commerce business because it is relatively low-cost and easy to get started. You don’t need to invest in any inventory upfront, and you can start a dropshipping business from anywhere in the world.
Read on to learn how to start dropshipping in UAE. This can easily be your side hustle as it requires minimum investment and is quite easy to carry out.
What Do Dropshippers Do?
Basically, dropshippers mediate between suppliers and customers. These merchants get products shipped from third parties to buyers.
The only investment you need to make is get your license in the UAE, and perhaps, a website to showcase the products. You do not need your own inventory of products, storage spaces or arrange any supply logistics. Neither do you have to bear any staffing costs.
You, however, will be answerable to clients. Therefore, communication is key. You will have to track the orders, follow-up, deal with inquiries, grievances, and return requests.
Is Dropshipping Legal in UAE?
Yes, dropshipping is perfectly legal in the UAE. It’s a great place to start because of the growing e-commerce market and tech-savvy population. Just make sure you get the right trade license and register for VAT if needed. Following UAE laws is important to avoid any legal problems.
Why the UAE is a Good Market for Dropshipping
The UAE is a great market for dropshipping for several reasons:
- Growing ecommerce market: The UAE’s ecommerce market is growing rapidly, with online sales expected to increase by 60% in 2025. This growth is being driven by a number of factors, including a young and tech-savvy population, rising incomes, and increasing internet penetration.
- Easy access to suppliers: The UAE is home to a number of large and reputable dropshipping suppliers, both locally and internationally. This makes it easy for dropshippers to find the products they need to sell.
- Efficient logistics infrastructure: The UAE has a highly efficient logistics infrastructure, making it easy and affordable to ship products to customers worldwide.
- Favorable government regulations: The UAE government is supportive of e-commerce and dropshipping. There are no major regulatory barriers to entry, and the country offers a number of incentives for businesses, such as tax breaks and free trade zones.
How to Start a Dropshipping Business in Dubai and the UAE?
Starting a dropshipping in UAE, involves several key steps. Below is a step-by-step guide to help you launch your dropshipping business in this growing market:
Step 1: Decide your Dropshipping Business
Target unique goods. You will need to figure out what products will the expats residing in the UAE will be willing to pay for. These could be specific to their countries or even textiles, food, handicraft, jewellery found / produced only in your country.
Step 2: Legal Requirements
Register your business with the Department of Economic Development (DED) in Dubai or the relevant authority in your emirate. Also, familiarize yourself with the UAE’s import and export regulations, including customs duties and required permits for specific product categories.
Step 3: Find reliable Dropshipping suppliers
Once you have chosen a niche, you need to find suppliers who sell high-quality products at competitive prices. You can find suppliers on Alibaba, AliExpress, and other online marketplaces. Be sure to read reviews from other dropshippers before choosing a supplier.
Step 4: Create a website
Your website is your storefront, so it’s important to make a good impression. Choose a user-friendly platform like Shopify or WooCommerce to create your website.
Step 5: Open a Business Bank Account
Set up a business bank account. You will need a bank account to receive payments from customers and pay your suppliers.
Step 6: Set your pricing and shipping rates
When setting your prices, you need to factor in the cost of the product, shipping, and your profit margin. You should also offer competitive shipping rates.
Step 7: Market your online store
Once your online store is up and running, you need to start marketing it to potential customers. You can market your store through social media, search engine optimization (SEO), and paid advertising.
Where to Sell?
1. Online Stores
You can reach potential customers by creating online store on existing e-commerce websites such as Shopify and Alibaba. These platforms provide marketing, payment gateway, client engagement and shipping facilities. They can accommodate sellers from across the world.
2. Social Media
Create an attractive profile for you brand and start putting up pictures and product information on popular social media platforms such as Facebook and Instagram. Market your products on social media and lead them to your online store.
Do I Require a Dropshipping License in the UAE?
Yes, you need a dropshipping license to start a dropshipping in UAE. The dropshipping license is a type of e-commerce license that allows you to sell products online without having to carry any inventory.
You can obtain a license from the Dubai Department of Economic Development (DED) or one of the free zones in Dubai, UAE. The cost of the license varies depending on the type of business structure you choose and the free zone where you register your business.
Once you have obtained a dropshipping Dubai, UAE license, you will need to register for VAT if your annual turnover exceeds AED 375,000.
Cost of Starting a Dropshipping Business in Dubai
The cost of a dropshipping business license in the UAE ranges from AED 12,900* to AED 23,600*. However, the actual cost depends on several factors, including the type of business structure you choose, the free zone authority you register with, and the specific cost of your business license.
In addition to these initial costs, you will also need to budget for ongoing expenses such as website hosting, domain name renewal, and payment processing fees.
Please note that the costs are rough estimates, the actual cost may vary depending on individual needs. You should contact the business setup consultants in UAE for better understanding of costs and assistance in company formation in Dubai.
Ready to Dropshipping in UAE? Partner with Shuraa Today
Starting a dropshipping in UAE is a great way to start your own business with low upfront costs and risks. The UAE is a growing e-commerce market with a young and tech-savvy population. This makes the UAE a great market to target with your dropshipping business.
However, it is essential to do your research, choose a reliable niche, and find reliable suppliers. You should also obtain a dropshipping license and comply with all applicable UAE laws and regulations.
Getting in touch with a business setup consultant like Shuraa Business Setup can help you to get started on the right foot.
With over 22 years of experience and having helped more than 50,000 entrepreneurs achieve their business goals, Shuraa Business Setup can provide the guidance and support you need to overcome the complexities of business setup process in UAE.
Don’t hesitate to reach out to us by phone at +971 4 4081900, via WhatsApp at +971 50 7775554, or simply send an email to [email protected].
So, what are you waiting for? Start planning your dropshipping Dubai business today!
