The Business Registration and Licensing department of the UAE’s Department of Economy and Tourism (DET) has announced that e-Trader licences rose six percent in 2021, to 6,217 as the e-commerce sector continues to grow.
Rapid growth
2021 was the best year on record for the e-Trader platform since its creation in 2017. The total number of licences issued for the platform now totals 16,409. By comparison, 4,344 licences had been issued by the end of 2019.
79 per cent of the permits issued went to the professional segment, followed by the commercial segment at 21 percent, the DET said. The sectors to which the most licenses were issued were IT, ready-made garments, women’s tailoring and design, handicrafts, men’s tailoring and design, publishing and printing services, facility management, marketing services and food preparation.
Pandemic-driven
As a result of the pandemic, the e-commerce market within the UAE grew dramatically, recording 53 percent growth in 2020 for a record value of USD 3.9 billion, according to a study by the Dubai Chamber of Commerce and Industry last summer.
The e-Trader licence is intended to regulate and enhance the ease of doing business online, as well as to connect customers with traders. The permit allows businesses to operate from their premises or on digital platforms including social networking sites. License holders can apply for three employment visas if the ownership is 100 percent Emirati, with the legal liability falling on the licence holder.
The MENA e-commerce market is set to hit USD 50 billion in 2022.
