Dropshipping In The UAE For Beginners: All You Need To Know
You often ask us whether the Middle East is a business-friendly region, and what you need to start dropshipping in the UAE. In this article, we’ve collected the most useful tips and pieces of advice related to this matter, and answered all your questions!
The digital landscape and ecommerce growth in the UAE: 2025 and beyond
The United Arab Emirates has grown into one of the most digital-friendly countries in the world. Almost 100% of its population is actively using the Internet. They enjoy surfing social media, writing reviews, and spending at least 8(!) hours a day online.
Besides that, according to statistics, in 2023, the value of ecommerce sales in the UAE was $7.5 billion and is projected to reach $8 billion in 2025. What’s more, analysts say that it will amount to $10.11 billion by 2029. As you can see, the ecommerce market in the UAE has good potential.
In fact, starting your own business in the UAE looks extremely promising due to several more reasons:
- There is no income tax, corporate tax, property tax, etc. in the UAE. The only tax entrepreneurs from the UAE should bear in mind is VAT.
- The market of the UAE is rapidly growing and there are still lots of niches with low competition.
So, if you’ve decided to start an ecommerce business in this country, this is definitely the right choice!
However, if you want to get a smooth start in dropshipping from UAE, you should know how to do this right. That’s why we are going to tell you about the main pros and cons of dropshipping in the UAE that you must consider seriously before starting a business, and provide you with some valuable tips on how to build your own financial empire in this country. So let’s get started!
Pros of dropshipping in the UAE if you’re a local resident
When you live in a country, you know a lot about its culture, economy, traditions, mentality, buying preferences, and limitations, etc. So, you have some advantages over other ecommerce entrepreneurs:
You understand the psychology of your customers better
You know, we are all unique and different. However, there might be some specific characteristics that generally belong to the people of one particular country and have nothing in common with residents of other countries.
These cultural differences may significantly affect the way people perceive the world around them and their usual response to different situations. For example, some marketing tricks that work well with the people from the US may be absolutely useless when you’re targeting an audience in Asia.
So if you live in the UAE, you know what your fellow citizens like, and how they feel about different marketing strategies, tips, tricks, etc.
You know the local shopping trends inside out
Another advantage you have over your competitors living outside the UAE is related to the knowledge of your local market and the products that are in high demand there.
You certainly know what products are difficult to find in brick and mortar stores in the UAE. You are well aware of which products are extremely popular among people from the UAE and which are not worth paying attention to. So you can easily take advantage of it!
If you don’t, just take some time to go shopping and look at the product range of the stores critically.
You are good at legal issues
Starting any type of business is usually a tough thing for most non-residents because they need to examine the laws of the target country and grasp them.
When you’re a resident, you are unlikely to face this issue.
Even if you don’t have a law degree, you know what is forbidden or allowed in your country and what legal documents you should study to get the necessary information.
As a rule, most local documents are in the official language of the country, so you won’t have any problems when reading them.
What you should pay particular attention to when starting dropshipping business in the UAE
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Do you have to register your business to start dropshipping in the UAE?
Yes, sure. To start selling something in the UAE, you need to register your business officially and get a business trade license. These are the simultaneous processes that are a mandatory requirement of the UAE government.
Please note that trade licenses are expensive. It will cost you $3,500 or more. Their cost depends on many factors such as the region of the business establishment, the type of business activities, the number of partnerships, etc.
If you really want to do business in the UAE, we strongly advise you to get a license. Otherwise, you can be fined and obliged to pay from $1,500 to $15,000.
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Are there any ways to avoid registering your business in the UAE and paying so much money?
Fortunately, yes. If this way of starting a business isn’t appropriate for you, you can try to register your business in the USA. We have a great article where we explain how to do it in detail. Feel free to read it!
However, pay attention to the fact that when you register your business in the UAE, you get several additional benefits. So it’s a great idea to learn more about the tax system of the UAE, what you can gain from it, and then make up your mind.
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What should you know about tax accounting in the UAE?
In fact, there is nothing special about tax accounting in the UAE for you to know. The only thing you should bear in mind about tax accounting is that all the companies in the UAE must maintain accounting records.
By the way, don’t forget about the VAT that is 5% in the UAE. What’s more, if your company’s twelve months turnover is over AED 375,000 (approximately 102,000 US dollars), you must register with the Federal Tax Authority.
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How much time does it take you to register your business in the UAE?
Registering a business in the UAE can take anywhere from 1 day to a few weeks, depending on the type of business and jurisdiction (Mainland, Free Zone, or Offshore). Here’s a general breakdown:
1. Free zone company (Fastest option)
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Timeframe: 1–5 days
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Process: Submit documents → Get trade license → Open a bank account → Start operations
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Best for: Foreign entrepreneurs who want 100% ownership and don’t need a local sponsor
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2. Mainland company (Requires local service agent for some businesses)
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Timeframe: 2–4 weeks
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Process: Trade name approval → Get initial approval → Draft MOA → Get a business license → Open a bank account → Start operations
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Best for: Businesses wanting to trade directly in the UAE market
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3. Offshore company (For international operations, no local business allowed)
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Timeframe: 3–7 days
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Process: Submit documents → Get incorporation certificate → Open a bank account
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Best for: Tax efficiency, international business, and asset protection
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Which payment gateways are available in the UAE?
When starting a dropshipping business in the UAE, selecting the right payment gateway is crucial for smooth transactions and customer satisfaction. Here are some recommended options:
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Telr: A trusted payment gateway in the UAE, Telr offers easy international transactions and supports multiple payment methods.
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PayTabs: Tailored for small and medium enterprises, PayTabs provides robust security and supports a wide range of payment methods.
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Amazon Payment Services: Backed by Amazon’s technology, this gateway supports local and global payment methods with built-in fraud detection.
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2Checkout (now Verifone): Ideal for global transactions, 2Checkout accepts multiple payment methods and integrates well with international dropshipping platforms.
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If these options don’t meet your needs, registering your business in the US can provide access to additional payment gateways. This approach allows you to utilize other payment solutions that may not be available in the UAE.
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Is ePacket delivery available in the UAE?
Another issue you may face when dropshipping in the UAE is that you can’t use the ePacket delivery. This shipping method isn’t available in the UAE.
At first glance, this is a big problem. But in fact, it is not.
AliExpress introduced AliExpress Direct in 2020. This is a premium delivery service that is developed specifically for customers in the UAE and Saudi Arabia.
Well, this service lets suppliers significantly shorten the delivery time. So when you order a product by means of AliExpress Direct, it can be indicated that the estimated shipping time is about a month. This is what they guarantee. However, in practice, due to the AliExpress Direct, people from the UAE and Saudi Arabia are able to receive their packages even in a week! That’s great, isn’t it?
However, not all the products placed on AliExpress can be delivered via this service – they must meet certain requirements, such as having high quality, for example.
This is a door-to-door delivery, so your customers won’t need to go to the post office. Besides that, if they’re not at home, a courier will make a second delivery attempt at another time.
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Can you dropship to other countries from the UAE?
Yes, you can!
Please note that as a business owner you don’t need to focus on the target audience from the UAE only. Definitely, the population of the UAE is almost 10 million people. In fact, this is enough for you to find your target audience and succeed.
However, why should you limit yourself? Just imagine that you can significantly expand your target audience by engaging with a global audience. Fortunately, the dropshipping business model lets you easily do this and provides you with an opportunity to build your own financial empire!
Dropshipping to the UAE from a foreign country
Now you know the reasons to start a dropshipping business while living in the UAE, and the possible limitations you may face. But what if you live in another country and just want to target this market? What should you do in this case?
Actually, nothing special.
As you know, you can start a dropshipping business from any destination in the world. Therefore, when launching a store, you will focus on the laws of your own country with regard to business registration and taxation. Still, remember that if you sell digital products to a customer in the UAE, you must charge the VAT rate!
Probably, you won’t know your target audience as well as the UAE residents, but this is not a big deal. Visit forums, discussion boards, and social media communities related to this country and read as much information about it as possible.
In some time you’ll get an idea of the culture of this country, typical customer behavior, and buyers’ preferences. Besides that, you will learn more about what your target audience likes and what types of products are popular with the country population.
As you can see, targeting the UAE market won’t have any difference. You will do the same things that all dropshippers do when launching their business.
AliDropship: your turnkey solution for starting a dropshipping business
Starting dropshipping can be daunting, especially when you’re expected to navigate complex logistics and manage multiple facets of an online business. This is where AliDropship steps in as your ultimate turnkey solution. By offering a comprehensive suite of tools designed to facilitate every aspect of dropshipping, AliDropship empowers entrepreneurs to launch their business smoothly and efficiently.
With AliDropship, you gain access to an array of features tailored to enhance your ecommerce experience. From a user-friendly interface that simplifies store setup to an extensive product database that ensures a diverse range of trending products, every element is crafted to meet your specific needs.
The seamless integration with major ecommerce platforms guarantees that your online store operates effortlessly, while automated functions like order fulfillment and inventory management save you precious time and effort.
Moreover, AliDropship provides invaluable resources like marketing guides, customer support, and analytics tools, enabling you to make informed decisions and optimize your business strategy. By eliminating the technical hurdles and providing strategic insights, AliDropship allows you to focus on what truly matters: growing your brand and expanding your market reach.
In essence, AliDropship transforms the complex process of starting and running a dropshipping business into a streamlined journey, offering a robust foundation for your entrepreneurial success. Whether you’re a seasoned entrepreneur or a newcomer to ecommerce, AliDropship equips you with the necessary tools and support to thrive in the competitive online marketplace.
Now you know how to start dropshipping in the UAE right and what aspects you should pay attention to. If you have any questions, feel free to leave a comment below!
