Those made on social media are no different from sales made on the ground. Both of these economic activity require the acquisition of a trade licence from the government. Small companies and independent entrepreneurs now have a simple and cost-effective platform for promoting their products and services via social media platforms. Not only do social media platforms have a large audience, but they also demand the least amount of work and money. However, it has also evolved into a haven for fraudulent and criminal operations to take place. In order to protect online customers and businesses, the government of the United Arab Emirates has made it necessary to obtain a commercial licence in Dubai.
In 2018, the UAE Ministry of Economy, in collaboration with the Telecommunications Regulatory Authority, took down a large number of illegal business websites and social media pages in Dubai that did not have a valid trade licence. In the same year, the Department of Economic Development (DED) ordered the closure of more than 13,000 social media accounts for engaging in illegal trading activities. Some social media accounts also sold large quantities of counterfeit products, prompting the Department of Economic Development and the Department of Consumer Protection to take appropriate action against these social media accounts.
The Electronic Media Regulations legislation was passed in March 2019 in response to an increase in the number of illegal sales and online scams that have occurred. According to the legislation, internet activities carried out for business reasons in Dubai need the acquisition of a trade licence. The Department of Economic Development (DED) and the National Media Council must both approve the trade licence before it can be issued in Dubai (NMC). The operations include the sale of goods and services, as well as the commercial use of any other online platform available for commercial purposes. The use of social media for commercial purposes by vendors, vloggers, and influencers is likewise covered by the law.
If you sell on social media without a licence, what is the repercussion?
Facebook, Instagram, and WhatsApp are the most widely utilised social media platforms for the sale of goods and services. The UAE’s business legislation applies to these and other social media platforms, as well as to traditional media. As a consequence, nationals and residents of the United Arab Emirates who offer goods or services online without a trade licence may face fines of up to AED 500,000. Social media platforms in the United Arab Emirates are closely monitored and controlled by UAE government. Their mission is to encourage the practise of fair trade while also protecting customers from internet scams and fraud.
What is the procedure for obtaining a social media licence in Dubai?
In Dubai, business licences are issued by the Department of Economic Development (DED) to businesses who want to do business in the area. Any kind of company, whether online or offline, must get a licence from the Department of Economic Development.
To sell on social media, a business must obtain a trade licence granted by the Department of Economic Development and the National Manufacturing Council. You will be able to freely publish and promote material that is linked to goods and services within the terms of the licence. It will also provide you the creative flexibility you need to operate a full-fledged company.