New rules planned for online retailers
Dubai: The Department of Economic Development in Dubai ( DED ) is planning to issue new regulations for online consumer electronics retailers operating out of the freezones in bid to protect consumer rights and to make a level-playing field for all retailers, top retailers told Gulf News.
Deepak Babani, CEO of Eros Group, said that currently there are no government trade licences for e-commerce retailers who operate solely from the free zones (Jebel Ali, Jumeirah Lake Towers and Silicon Oasis) in Dubai. Traditional retailers have been complaining that e-commerce shops are undercutting prices, offering products not approved for use in the UAE, and failing to provide warranties.
“ DED is expected to issue licences for pure online retailers in the next two to three months. So the current online retailers operating from the free zones have to come under the DED ,” he said.
Omar Bushahab, CEO of business registration and licensing sector at DED , said in a emailed statement to Gulf News, that free zone companies operating in certain sectors already have the option to sell their products or services in mainland Dubai, provided they open a branch office in the mainland and appoint a service agent for the same, after obtaining a ‘no objection letter’ from the free zone concerned.
He said that the Department constantly reviews business registration and licencing regulations to ensure that investors in Dubai benefit from the best international practices.
The DED already permits e-commerce activity in selected areas of retailing, including food products; clothes; textiles and gifts; print and media material; home appliances and tools; vehicles and other means of transport; tools and equipment; jewellery and precious stones; travel services and leisure.
Ashish Panjabi, COO of Jacky’s Retail, said that they [DED] have been taking with us [retailers] for quite some time. Not only DED but also TRA and Esma (Emirates Authority for Standardisation and Metrology).
“As an emerging economic activity, e-commerce is also subject to such regular review and new regulations will be announced wherever required in consultation with the various stakeholders,” Bushahab said.
