E-Commerce License Dubai: Start Your Online Business in the UAE
The UAE's e-commerce market reached USD 8.5 billion in 2025 and continues to grow at 15% year-on-year, making it the largest online retail market in the Middle East. Dubai, with its world-class logistics infrastructure, tax advantages, and access to 400 million consumers across the MENA region, is the natural hub for online businesses. Whether you plan to sell physical products through your own store, operate as an Amazon FBA seller, run a dropshipping operation, or offer digital services, this guide covers everything about obtaining your e-commerce license in Dubai—from choosing the right free zone to setting up payment gateways and shipping logistics.
What Is an E-Commerce License?
An e-commerce license is a trade license that authorises you to conduct commercial activities online—selling goods or services through a website, mobile application, or third-party marketplace. In the UAE, there is no single “e-commerce license” category. Instead, you obtain a commercial or professional license with specific e-commerce activity codes such as “E-Commerce,” “Online Retail Trading,” “Electronic Commerce,” or “Information Technology Services.” The DET also offers a dedicated “E-Trader” license for individuals selling on social media platforms, though this is limited in scope and does not allow you to sponsor visas. For a full-scale e-commerce operation, a free zone or mainland trade license with the appropriate activity codes is the standard approach.
Best Free Zones for E-Commerce Businesses
Not every free zone is equally suited to e-commerce. The best ones combine competitive pricing, flexible activity lists, strong banking relationships, and logistics connectivity. Here are the top choices in 2026:
IFZA (International Free Zone Authority)
IFZA is based in Dubai's Fujairah-Dubai corridor and is one of the fastest-growing free zones for e-commerce operators. Its commercial packages start from AED 15,000 and include up to three activities, a flexi-desk, and one visa allocation. IFZA's broad activity list accommodates e-commerce, general trading, IT services, and digital marketing under a single license. Banking facilitation is strong, with partnerships with Wio Bank and Mashreq that expedite account opening.
SHAMS (Sharjah Media City)
SHAMS offers the most affordable entry point for e-commerce with packages from AED 5,750 for a professional license and approximately AED 9,500 for a commercial license with e-commerce activities. Located in Sharjah, it is a popular choice for bootstrapped startups and social media businesses. The trade-off is that banking can be slightly more challenging than Dubai-based zones, and warehousing must be arranged separately.
DMCC (Dubai Multi Commodities Centre)
DMCC is the premium option, ideal for high-value e-commerce, commodities trading, and businesses that need maximum international credibility. Packages start from AED 25,000 but include up to five activities. DMCC companies benefit from the zone's banking relationships with all major UAE banks and access to the JLT district's logistics and co-working infrastructure.
E-Commerce License Costs Comparison (2026)
| Free Zone | E-Commerce License | Visa Cost (Add-on) | Best For |
|---|---|---|---|
| SHAMS | AED 5,750 - 9,500 | AED 3,500 | Budget startups, social sellers |
| Ajman Free Zone | AED 6,500 - 10,000 | AED 4,000 | Cost-conscious traders |
| RAKEZ | AED 8,500 - 12,000 | Included in some packages | FBA sellers, warehouse needs |
| IFZA | AED 12,000 - 15,000 | Included | Established e-commerce, multi-channel |
| DMCC | AED 25,000 - 30,000 | Included | Premium brands, high-value goods |
Activity Codes for E-Commerce
When applying for your license, you will select specific activity codes that define what your business can do. For e-commerce operations, the most commonly used codes include:
- E-Commerce / Electronic Commerce — The primary code for online selling
- General Trading — Broadest trading code, allows import/export of most goods
- Online Retail Trading — Specific to selling goods directly to consumers online
- IT Services / Software Development — For SaaS, digital products, and app-based businesses
- Digital Marketing / Advertising — If your business model includes marketing services
- Consultancy Services — For e-commerce consulting, marketplace advisory
Setting Up Payment Gateways
Once you have your trade license and corporate bank account, you can apply for a payment gateway to accept online payments. The UAE market supports multiple providers, each with different fee structures and integration options:
- Stripe (MENA) — 2.9% + AED 1 per transaction. Excellent API and developer tools. Requires a UAE corporate bank account.
- Telr — From 2.5% per transaction. Popular in the GCC with multi-currency support.
- PayTabs — From 2.75% per transaction. Quick setup, supports Apple Pay and Samsung Pay.
- Amazon Payment Services — Competitive rates for high-volume sellers. Native integration with Amazon.ae.
Most gateways require your trade license, corporate bank account details, a website or app URL, and a security deposit ranging from AED 1,000 to AED 5,000. Approval typically takes 5 to 15 business days.
Logistics and Fulfillment
Dubai's logistics ecosystem is a major advantage for e-commerce businesses. The city is home to Jebel Ali Port (the largest in the Middle East), two international airports, and a network of fulfilment centres operated by providers like Aramex, Fetchr, and iMile. Third-party logistics (3PL) providers offer warehousing, picking, packing, and last-mile delivery at competitive rates. Amazon FBA sellers can also use Amazon's own fulfilment centres in the UAE. If your business model does not require physical inventory, a freelance or service-based license may be more cost-effective. For businesses that sell physical goods and need a warehouse, RAKEZ and Ajman Free Zone offer integrated warehouse-license packages.
Step-by-Step: Getting Your E-Commerce License
- Define your business model — Determine whether you are selling physical products, digital goods, services, or operating a marketplace. This affects your activity codes and license type.
- Choose your free zone — Use Maya AI's recommendation engine to compare options based on your budget, activity, and visa needs.
- Apply and receive your license — Submit documents, pay fees, and receive your trade license within 3 to 7 days.
- Open a corporate bank account — Apply with your license, passport, and business plan. Allow 1 to 4 weeks for processing.
- Set up your payment gateway — Apply with your license and bank account. Allow 1 to 2 weeks for approval.
- Launch your store — With your license, bank account, and payment gateway in place, you are legally ready to sell.
Frequently Asked Questions
Do I need a UAE license to sell online from Dubai?
Yes. Any business operating from the UAE, including online-only businesses, must hold a valid trade license. E-commerce activities require either a commercial license with e-commerce activity codes or a dedicated e-commerce/e-trader license. This applies even if your customers are entirely outside the UAE.
Which free zone is best for an Amazon FBA business?
IFZA and RAKEZ are popular for Amazon FBA sellers because they offer commercial licenses with general trading activities at competitive prices. IFZA (from AED 15,000 for a commercial package) provides a Dubai address which is advantageous for logistics. JAFZA is another option if you need warehouse space near the port.
Can I run a dropshipping business from Dubai?
Yes. Dropshipping is a legitimate business model in the UAE and falls under e-commerce or general trading activity codes. You will need a commercial license since dropshipping involves the sale of goods, even though you never physically handle inventory. SHAMS and IFZA are popular choices for dropshipping businesses.
What payment gateways work with a UAE e-commerce license?
Major payment gateways available for UAE-licensed businesses include Stripe (MENA), Telr, PayTabs, Network International, Checkout.com, and Amazon Payment Services (formerly Payfort). You will need a corporate bank account and your trade license to apply. Approval typically takes 5 to 15 business days.
How much does it cost to start an online business in Dubai?
Total first-year costs for an e-commerce business in Dubai range from AED 8,000 to AED 30,000, covering your trade license, visa, and basic setup. SHAMS offers the lowest entry at AED 5,750 for the license alone. Add approximately AED 3,500 for a visa, AED 1,000-3,000 for a payment gateway deposit, and AED 500-5,000 for a domain and website hosting.