In a strategic move to strengthen its digital economy, the UAE has introduced a new e-commerce law. Abdullah Ahmed Al Saleh, the Undersecretary of the Ministry of Economy, announced the law, highlighting its role in transitioning the UAE towards a more resilient, innovative, and entrepreneurial economic model.
The law is designed to enhance trade growth by leveraging advanced technologies and developing smart infrastructure. It forms an integral part of the UAE’s vision to be a global leader in proactive legislation for new economic sectors, aligning with the ‘We the UAE 2031’ vision.
Federal Decree-Law No. 14 of 2023 on Commerce through Modern Means of Technology (e-commerce) is a key component of the UAE’s digital transformation strategy. Al Saleh emphasized that this law is the primary federal legislation governing e-commerce in the country. It aims to improve the business climate by simplifying business processes, increasing efficiency, reducing costs, and ensuring stability, without imposing new requirements on digital traders or service providers.
One of the law’s notable features is its adaptability to future technological developments, including digital and blockchain technologies. This flexibility ensures that the law remains relevant and effective without needing amendments for each new technological advancement.
The law is expected to bolster the economic and legislative framework, attract national and foreign investments, diversify business activities, enhance consumer services, and create job opportunities.
Key Highlights of the E-Commerce Law:
- Compatibility with international digital commerce trends and a flexible legislative approach.
- Emphasis on the roles of entities responsible for licensing and regulating e-commerce, logistics services, and digital payment gateways.
- Protection of consumer interests, including intellectual property rights and technology-based safeguards for online purchasing, and regulation of refunds and exchanges.
- Legal authorization of trade conducted through modern technological means, equating it with traditional methods.
- Optional dispute resolution jurisdictions, including arbitration, and the principle of optional insurance coverage for obligations arising from digital trade.
- Integration of roles of federal and local entities in the e-commerce value chain, from digital payment gateway requirements to cybersecurity.
- Regulation of roles and approvals required for digital transformation of business activities and e-commerce licensing.
- Creation of an optional authority for supervisory, regulatory, and judicial control.
- Organization of relationships between merchants (B2B) and between digital merchants and consumers (B2C).
- Regulation of digital contracts, protection of online consumers and related parties, and organization of digital payment gateways.
This comprehensive law is set to revolutionize the e-commerce landscape in the UAE, aligning with global trends and paving the way for a robust digital economy.
