Dubai has rapidly emerged as a global eCommerce hub, attracting entrepreneurs from Australia, Europe, and beyond. With its strategic location, tax-friendly environment, and growing digital economy, the city offers lucrative opportunities for foreign sellers to tap into the Middle Eastern market. Among the many platforms available, Amazon.ae remains a leading channel for sellers eyeing Dubai’s booming online consumer base.
In this article, we’ll explore:
- Eligibility requirements for selling on Amazon in Dubai
- Why Dubai is an ideal eCommerce destination
- The pros and cons of selling via Amazon UAE
- Tax and compliance considerations
- Other eCommerce platforms to consider
1. Eligibility Requirements: Do You Need a UAE Company?
For foreign sellers, Amazon UAE provides two primary selling options:
A. Selling Locally via a UAE Entity
To operate as a full seller on Amazon.ae (listing your own products, managing inventory locally, and accessing Fulfilled by Amazon – FBA), you’ll need:
- A UAE trade license (Free Zone or Mainland)
- UAE bank account
- Valid VAT registration (if annual turnover exceeds AED 375,000)
- A local address for product returns or storage (especially for FBA)
This structure allows full access to the marketplace and offers credibility, faster deliveries, and compliance with local regulations.
B. Selling Cross-Border (International Sellers)
Amazon UAE also allows international sellers to list and ship products directly from their home countries. However:
- Shipping time and cost may reduce competitiveness
- Returns and refunds may be more complex
- Customers often prefer local listings (due to faster delivery)
For most serious sellers, registering a UAE company is the recommended route. Free Zones like Meydan Free Zone, Shams, or SPC Free Zone offer eCommerce licenses at affordable rates and 100% foreign ownership.
2. Why Choose Dubai for eCommerce?
A. Strategic Global Location
Dubai bridges the East and West, offering access to 2 billion consumers within a 4-hour flight radius. The UAE itself has a digitally savvy, high-spending population with a strong preference for online shopping.
B. Tax Benefits
The UAE offers 0% personal income tax and a relatively low 9% corporate tax (with exemptions for qualifying small businesses). For VAT-registered sellers, the 5% VAT system is straightforward and globally aligned.
C. World-Class Logistics Infrastructure
With global shipping ports like Jebel Ali and smart last-mile delivery providers, Dubai ensures seamless logistics and fulfillment, especially for Amazon sellers using FBA.
D. Strong Legal & Business Framework
The UAE is known for its business-friendly policies, investor protection laws, and quick company setup procedures. eCommerce is a government-prioritized sector under the Dubai 2030 Strategy.
3. Pros & Cons of Selling on Amazon UAE
✅ Pros:
- High eCommerce penetration: Over 90% internet penetration with a preference for mobile shopping.
- Trusted platform: Amazon.ae is widely recognized and trusted by UAE consumers.
- FBA support: Fulfilled by Amazon helps sellers manage logistics and returns with ease.
- Arabic-English bilingual marketplace: Sellers can reach local and expat audiences.
- Local payment options: Amazon supports cash-on-delivery and local cards, essential for the region.
❌ Cons:
- Platform fees: Referral fees and FBA charges can add up.
- Competitive pricing: International sellers often undercut prices.
- Language and cultural differences: Product descriptions and ads must resonate with the local audience.
- Mandatory UAE company for full access: This adds initial costs for registration, accounting, and compliance.
4. Accounting & Tax Implications
A. VAT Registration & Filing
If your UAE-based eCommerce business exceeds AED 375,000 in annual turnover, VAT registration is mandatory. VAT filings are typically done quarterly and require:
- Valid invoices with TRN
- Record of all sales and purchases
- Bookkeeping support or software
B. Corporate Tax (As of June 2023)
- The new UAE corporate tax applies to businesses earning over AED 375,000/year at a flat 9%.
- Free Zones may still enjoy tax exemptions if they meet “Qualifying Free Zone Person” criteria.
- Cross-border sellers from abroad may be exempt unless they have a physical presence in the UAE.
5. Logistics, Payments & Local Behavior
A. Shipping & Fulfillment
Amazon offers FBA (Fulfilled by Amazon) in the UAE, allowing sellers to store products in Amazon warehouses. Alternatively, sellers can use third-party logistics (3PLs) such as Aramex, Shipa, or Fetchr.
B. Preferred Payment Methods
While credit/debit cards are popular, Cash-on-Delivery (COD) remains a significant payment method in the UAE. Amazon handles both efficiently, but COD may incur extra fees.
C. Local Consumer Behavior
- Quality-focused buyers: Emirati and expat consumers expect high-quality and branded goods.
- Bilingual audience: Arabic and English listings perform better.
- Seasonal sales: Leverage Ramadan, UAE National Day, and Dubai Shopping Festival.
6. Other eCommerce Platforms in Dubai
While Amazon is a top choice, other platforms also provide viable opportunities:
- Noon.com: A major UAE-based competitor to Amazon with wide reach and seller support.
- Shopify: Ideal for creating your own branded store targeting UAE and GCC buyers.
- Temu & Shein: Gaining popularity among price-sensitive buyers; not yet open to all sellers.
- Tradeling: Focused on B2B eCommerce across MENA.
Final Thoughts: Is Selling on Amazon UAE Worth It?
For foreign entrepreneurs, particularly from Australia, Singapore, or the UK, Dubai offers a golden gateway into Middle Eastern eCommerce. Selling on Amazon UAE can be both profitable and scalable, especially when backed by a local UAE company, effective logistics, and a clear tax plan.
Whether you’re dropshipping, launching a private label, or importing branded goods — Dubai’s growing digital marketplace, low-tax environment, and access to global markets make it an unbeatable base for eCommerce expansion.