Key Highlights
Dubai’s e-commerce market is on track to reach USD 13.8 billion by 2029. This remarkable growth isn’t happening by accident. It’s backed by strategic infrastructure, government support, and innovative free zones designed specifically for digital commerce.
At the center of this transformation is Dubai CommerCity. It stands as the MENA region’s first dedicated e-commerce free zone. For entrepreneurs, small business owners, and international investors looking to establish an e-commerce presence in the UAE, understanding what this free zone offers can make the difference between a costly misstep and a thriving business.
Whether you’re planning to sell on Amazon.ae, expand into GCC markets, or build a global e-commerce brand, this guide covers everything you need to know. Keep reading to learn more.
Disclaimer: This article provides general information only and does not constitute professional advice. Costs, regulations, and requirements mentioned are subject to change—always verify current information directly with Dubai CommerCity and UAE government authorities. You can consult licensed professionals before making business decisions.
Dubai CommerCity launched in 2021 as a groundbreaking joint venture between the Dubai Integrated Economic Zones Authority (DIEZ) and Wasl Properties. This wasn’t just another free zone opening. It was a calculated response to the region’s explosive e-commerce growth.
The numbers tell the story. The free zone spans 2.1 million square feet with an investment of AED 3.2 billion. Location matters in e-commerce, and Dubai CommerCity sits strategically.
You’re just 5 minutes from Dubai International Airport and approximately 45 minutes from Jebel Ali Port. This positioning enables same-day and next-day delivery across the GCC region.
The infrastructure is purpose-built for digital commerce businesses. Unlike traditional free zones that accommodate various industries, every facility here serves e-commerce operations.
The free zone divides into three distinct clusters, each serving specific business needs.
Business Cluster houses 12 LEED-certified office buildings equipped with modern amenities. These aren’t generic office spaces. They’re designed with e-commerce workflows in mind, from customer service operations to digital marketing teams.
The logistics cluster contains 84 logistics units featuring AI-driven warehouses with solar panels. Major players like DHL and Hellmann Worldwide Logistics operate here. The pay-as-you-go warehouse model gives you flexibility without long-term commitments.
Social Cluster provides the human element—restaurants, cafes, and networking spaces. Building a business requires community, and this cluster facilitates those connections.
Dubai CommerCity isn’t standing still. The free zone announced strategic partnerships during Dubai AI Week in April 2025.
The partnership with qeen.ai brings agentic AI solutions specifically designed for e-commerce. This collaboration aims to establish a future-focused ecosystem supporting e-commerce growth through intelligent automation and AI-driven customer experience management.
Similarly, Portmind’s AI-powered Sail platform integration drives agility, efficiency, and compliance in customs processes. For businesses handling cross-border shipments, this means fewer delays and smoother operations.
Now that you understand what makes Dubai CommerCity unique, let’s explore the licensing options available to you. Choosing the right license determines what you can legally do, so understanding your options is crucial.
Dubai CommerCity offers six distinct license types to match different business models.
This license enables businesses to trade goods and services online, manage digital transactions, and streamline operations. It supports both B2B and B2C models. You don’t need physical retail space, making it cost-effective for pure online operations.
The E-Commerce License works perfectly if you’re running a Shopify store, selling through social media, or operating your own e-commerce platform.
If you’re dealing with physical goods, the trade license allows import, export, re-export, storage, and distribution of specified products. This suits businesses handling physical goods with significant inventory movement.
If you’re sourcing products from overseas manufacturers and distributing them across the GCC, this license provides the legal framework you need.
A service license permits consulting, advisory, and professional services. Digital marketing agencies, web developers, e-commerce consultants, and graphic designers fall under this category.
This license permits light manufacturing, packaging, and assembly within the free zone. You get access to advanced infrastructure for efficient production and customization.
Think product bundling, custom packaging, or light assembly operations that add value before shipping.
The General Trading License offers the broadest scope. It permits import, export, re-export, storage, and distribution across multiple product categories and industries.
However, this flexibility comes at a cost. General trading licenses typically carry higher fees than specific trading licenses.
This is Dubai CommerCity’s game-changer. The Dual License with DET enables companies registered in Dubai CommerCity to obtain a Dubai Department of Economy and Tourism (DET) license without needing physical office space on the mainland.
Why does this matter? Free zone companies traditionally face a significant limitation: they cannot trade directly in the UAE mainland market. They need local distributors or complex workarounds. The Dual License with DET removes this barrier.
You get both free zone benefits AND direct access to the local UAE market. This addresses the biggest complaint entrepreneurs have about free zone setups.
Beyond license types, you choose your legal structure.
A Free Zone Company (FZC) accommodates 1 to 50 shareholders, whether individuals or corporate entities. The minimum share capital requirement is just AED 1, making it accessible for startups.
Public Limited Liability Company (PLLC) allows unlimited shareholders. This structure suits larger companies planning public listing or extensive investor bases.
A Free Zone Entity (Branch) extends your existing company’s presence into the UAE without requiring share capital. It operates under your parent company’s legal identity.
Understanding your license options is one thing, but knowing what you’ll actually pay is another. Let’s cut through the marketing fluff and look at actual costs. Setting up in Dubai CommerCity involves multiple fee categories.
License fees range from AED 10,000 to 50,000 depending on the type. An e-commerce license typically falls in the AED 10,000 to 15,000 range.
Company registration fees add AED 9,000 to 15,000. This covers the legal entity formation process.
Office space represents a significant ongoing cost:
Share capital requirements are minimal. For an FZC, you need only AED 1.
Total estimated first-year costs range from AED 35,000 to 85,000 for a basic setup with a flexi-desk.
Beyond the first year, you’ll face ongoing expenses.
Many entrepreneurs underestimate these additional expenses:
To put these numbers in perspective, let’s compare Dubai CommerCity with other options.
RAKEZ (Ras Al Khaimah Economic Zone) offers lower entry costs starting from AED 5,750 to 15,000. However, you sacrifice the e-commerce-specific services and strategic Dubai location.
DMCC (Dubai Multi Commodities Centre) charges AED 35,484 to 49,941 for setup. DMCC carries more prestige but isn’t ecommerce-focused. It’s a general trading hub.
Mainland DED (Department of Economic Development) involves higher initial costs. However, you get direct, unrestricted market access throughout the UAE.
Here’s the reality: Budget an extra 20-30% beyond the advertised packages for unexpected expenses. Banking delays, additional document attestations, and unforeseen compliance requirements add up quickly.
These costs may change over time, so verify current pricing with Dubai CommerCity before making financial commitments.
Beyond competitive costs, Dubai CommerCity offers another major advantage: complete ownership control and favorable tax treatment.
Dubai CommerCity allows 100% foreign ownership. You don’t need a UAE national partner. You maintain complete control over business decisions, profits, and strategic direction.
Full repatriation of capital and profits is permitted. There are no currency restrictions. You can move money in and out of the UAE freely.
0% corporate income tax applies to qualifying free zone businesses. This isn’t automatic anymore. You must meet specific conditions under the UAE Corporate Tax Law introduced in June 2023.
0% personal income tax continues as a UAE standard.
No import/export duties apply within the free zone. Goods moving between free zones or for export don’t incur customs duties.
VAT considerations: 0% VAT applies to goods entering and leaving the free zone. However, 5% VAT applies on sales to UAE mainland customers.
The UAE introduced a 9% corporate tax on profits exceeding AED 375,000 in June 2023. This affects both mainland and free zone companies.
Free zone companies can qualify for a 0% corporate tax rate on “Qualifying Income” if they meet specific conditions:
Non-qualifying income faces the standard 9% tax rate. If the majority of your income comes from UAE mainland sales, you might lose the 0% benefit.
The legal framework for Qualifying Free Zone Person status is established under Federal Decree-Law No. 47 of 2022 (UAE Corporate Tax Law), Cabinet Decision No. 100 of 2023 on Determining Qualifying Income, and Ministerial Decision No. 229 of 2025 Regarding Qualifying Activities and Excluded Activities.
These regulations outline specific requirements for qualifying activities, adequate substance, and de minimis thresholds.
Critical point: Free zone tax benefits can be lost if you don’t maintain proper substance or if most of your revenue comes from UAE mainland customers. This is complex tax territory. Consulting a qualified tax advisor before setting up is essential, not optional.
Also Read: How to Get a Commercial License From UAE IFZA Free Zone: JSB Guide
With the ownership and tax benefits clear, let’s address another critical element of your setup: bringing people into your business through visa sponsorship.
Dubai CommerCity offers several visa categories.
The investor visa suits company owners and shareholders. This visa ties to your ownership stake in the company.
Employee visas are based on office space size and business activity. The number of visas you can sponsor depends on your workspace allocation.
Family sponsorship allows you to bring your spouse and children. Income requirements apply: minimum AED 4,000 for spouse and children, AED 20,000 for parents.
Standard validity ranges from 1 to 3 years, renewable.
Flexi-desk typically allows 1-2 visas.
Dedicated office visa quotas are based on square footage.
Larger facilities can sponsor unlimited visas.
This quota system can constrain growing companies. If you plan to hire 10 employees in your first year, a flexi-desk won’t meet your needs. Plan your workspace accordingly.
You need several elements in place before sponsoring visas:
The UAE Golden Visa program has expanded to include more e-commerce entrepreneurs.
The 5-year Golden Visa for entrepreneurs requires:
A 10-year Golden Visa becomes available if you meet higher thresholds, typically involving an investment of AED 10 million or meeting other qualifying criteria.
The Golden Visa provides significant benefits: long-term residency independent of employment, the ability to sponsor family members, and enhanced stability for business planning.
Your free zone visa ties directly to your active business. If your company closes, your visa is canceled. You typically have a 30-60 day grace period to find alternative sponsorship or leave the country.
Unlike mainland licenses with more flexible visa quotas, free zone visa allocation can be restrictive for rapidly growing companies. Factor workforce expansion into your initial workspace choice.
At this point, you might be wondering how Dubai CommerCity stacks up against other options. Choosing the right jurisdiction shapes your entire business trajectory. This isn’t a decision to make lightly.
Dubai CommerCity works best for:
On the other hand, a mainland license becomes the stronger choice when you:
Here’s how the major options compare:
What You Get | Dubai CommerCity | DMCC | RAKEZ | Mainland DED |
Best For | Online businesses | General trading | Budget startups | Local market sales |
Starting Cost | AED 35,000 – 85,000 | AED 35,000 – 50,000 | AED 6,000 – 15,000 | AED 18,000 – 50,000 |
Sell in UAE | Need a dual license or distributor | Need distributor | Need distributor | Yes, directly |
Amazon/Noon | Yes | Yes | Yes | Yes (easier) |
Built-in Warehousing | Yes | Some options | Limited | Must arrange separately |
Tech Support | AI partnerships included | Basic | Basic | Not included |
Since most ecommerce entrepreneurs plan to sell on major marketplaces, let’s address the platform-specific requirements. If you plan to sell on Amazon.ae or Noon, specific requirements apply beyond your basic license.
Both platforms require:
Amazon.ae accepts both individual and business sellers. Mainland licenses have an advantage for FBA (Fulfilled by Amazon) due to customs code alignment.
Noon requires a business license—no individual seller option. The platform shows strong local UAE market preference.
Both platforms make onboarding easier with mainland licenses due to how customs codes are structured.
FBA (Fulfilled by Amazon) is easier with a mainland license. Amazon handles storage, packing, and shipping. Customs procedures for free zone companies can add complexity.
FBN (Fulfilled by Noon) has similar requirements to Amazon FBA.
Self-fulfillment remains manageable with a free zone license. You handle storage and shipping directly.
Despite these challenges, Dubai CommerCity’s integrated logistics cluster includes partnerships with DHL and Aramex. The free zone offers pre-negotiated fulfillment rates, direct airport access for faster shipping, and a pay-as-you-go warehouse model.
This infrastructure can partially offset the mainland license advantage, especially for businesses serving international customers.
Free zone companies may face delays in customs clearance for mainland deliveries. Extra documentation is required for B2C sales within the UAE.
Solution: Utilize the Dual License option with DET or partner with a licensed mainland distributor.
Based on seller experiences, approximately 60% of UAE e-commerce sellers recommend a mainland license if Amazon.ae is your primary sales channel. Dubai CommerCity is better suited for international markets or multi-country operations.
While marketplace requirements are relatively straightforward, banking presents a different story. Opening a corporate bank account in the UAE presents one of the biggest frustrations for e-commerce businesses. Understanding the challenges upfront helps you plan accordingly.
Banks are reluctant to open accounts for pure e-commerce businesses. They perceive online businesses as high-risk due to fraud concerns. The account opening process can take 2-6 months.
This timeline often surprises entrepreneurs who expected a quick setup.
Fortunately, several banks have become more accommodating with proper documentation:
Prepare these documents before approaching banks:
The business plan is critical. Banks want to understand your business model, revenue sources, customer acquisition strategy, and financial sustainability.
All UAE banks must verify genuine business substance per UAE Central Bank mandates. This isn’t negotiable. Banks verify:
Your Emirates ID and active residence visa are essential. Banks want to see you’re actually in the country, not running a shell company remotely.
Different banks have varying minimum balance requirements:
These balances can be substantial. Factor this into your startup capital requirements.
Once you have a bank account, you need payment processing:
Dubai CommerCity partnered with payment providers to streamline integration for DCC companies. These pre-negotiated relationships can accelerate your payment setup.
Banking isn’t the only compliance hurdle you’ll face. Value Added Tax (VAT) in the UAE adds another layer of compliance that many e-commerce entrepreneurs underestimate.
You must register for VAT if your annual taxable turnover exceeds AED 375,000. This threshold applies to most resident businesses.
For non-resident businesses making taxable supplies in the UAE, the registration threshold is effectively nil. You must register within 30 days of your first taxable sale in the UAE.
You can voluntarily register for VAT once your annual turnover exceeds AED 187,500. Many businesses choose voluntary registration to reclaim input VAT on business expenses.
This can make financial sense even before hitting the mandatory threshold.
Standard rate: 5% on most goods and services
Zero-rated supplies: International transportation, certain food items, healthcare, education, and exports
Exempt supplies: Residential property sales and leases, local passenger transport
VAT on imported goods must be paid at customs before release. This affects your cash flow when importing inventory.
Digital services to UAE consumers incur 5% VAT. If you sell online courses, software subscriptions, or streaming services, you charge VAT.
Cross-border sales may be zero-rated depending on the destination.
Platform responsibility typically falls on the seller, not the marketplace (Amazon.ae/Noon). You’re responsible for VAT compliance even when selling through third-party platforms.
Once registered, you’ll need to meet several ongoing obligations:
Quarterly returns apply to most businesses. You file through the Federal Tax Authority (FTA) portal.
Maintain records for 5 years (15 years for real estate transactions). This includes invoices, receipts, import documents, and accounting records.
Issue VAT-compliant invoices with your Tax Registration Number (TRN). Your invoices must include specific information as outlined by the FTA.
Online filing through the FTA portal is mandatory.
The Federal Tax Authority enforces strict penalties:
These aren’t empty threats. The FTA actively audits businesses and enforces penalties.
Fortunately, Dubai CommerCity provides access to pre-vetted tax consultants, customs consulting services, and workshops on VAT compliance. Leveraging these resources can help you avoid costly mistakes.
Strategic tip: Many e-commerce startups ignore VAT planning until reaching the threshold. Register voluntarily early if you’re making significant purchases for your business setup (office equipment, inventory, marketing services). You can reclaim input VAT on these expenses, immediately improving your cash flow.
Also Read: E-commerce in UAE – Benefits, Registration & Fees Explained
Now that you understand the requirements, let’s walk through the actual setup process. Understanding the realistic timeline prevents frustration and helps you plan your business launch properly.
Determine business activity and license type. This fundamental decision affects everything that follows.
Choose a company name. Follow UAE naming conventions. Certain words require special approvals.
Decide on legal structure (FZC, PLLC, Branch).
Prepare required documents:
Submit the application through the Dubai CommerCity portal. The online system has improved significantly in 2025.
Name approval from authority. This usually takes 1-3 business days.
Initial approval issued.
Draft and notarize the Memorandum of Association (MOA). This legal document defines your company structure, shareholder rights, and business scope.
Pay license fees and registration charges.
Select office space. Choose between a flexi-desk, a dedicated office, or a warehouse depending on your needs.
Sign the lease agreement. Ensure the agreement meets all legal requirements.
Register Ejari. This is the government registration of your lease agreement.
Obtain an Establishment Card. This costs AED 1,825 per year.
Apply for entry permits. This allows shareholders and employees to enter the UAE.
Medical fitness tests. All visa applicants must undergo medical screening for communicable diseases. Tests include blood work (HIV, Hepatitis B and C) and chest X-ray (tuberculosis screening).
Emirates ID application. This is your UAE identification card.
Visa stamping. The residence visa is stamped in your passport.
Labor card processing if hiring employees.
Medical fitness certificates can often be obtained the same day at authorized centers.
Open a corporate bank account. This is typically the longest step. Prepare for 2-3 months in reality, despite optimistic timelines.
Register for VAT if your anticipated turnover exceeds thresholds.
Set up payment gateway. Integration typically takes 1-2 weeks once your bank account is active.
Integrate with e-commerce platforms (Amazon, Noon, Shopify).
Launch operations.
The realistic end-to-end timeline is 2-4 months. Banking represents the biggest variable.
Fast-Track Options
If you need to accelerate the process, consider these options:
Use a licensed business consultant to handle documentation and liaising with authorities. This adds cost (typically AED 5,000 to 15,000) but can reduce time to 3-6 weeks for licensing.
Pre-approved bank account packages from some consultancies can accelerate banking.
Digital-first zones like RAKEZ offer 5-day setup. However, you sacrifice Dubai CommerCity’s e-commerce-specific ecosystem.
Yes, through two methods. First, the Dual License with DET allows mainland sales without requiring a physical office on the mainland. Second, you can appoint a licensed mainland distributor to handle B2C sales to UAE customers.
Basic setup ranges from AED 35,000 to 85,000 for the first year, including license, registration, and flexi-desk. This covers the core essentials. Add a 20-30% buffer for banking requirements, VAT registration, and unexpected costs. Costs may change, so verify current pricing directly with Dubai CommerCity.
Dubai CommerCity offers lower initial costs, potential tax benefits for qualifying income, and an integrated e-commerce ecosystem. However, you face restrictions on direct mainland market access without a dual license or distributor. Mainland licenses cost more but allow direct UAE sales and unlimited market access across all seven emirates.
No. You can start the company formation process and obtain your resident visa through company sponsorship. Initial setup can be completed while on a visit visa or even remotely through an authorized business consultant.
Yes, both platforms accept free zone licenses. You’ll need your UAE trade license, bank account, and Emirates ID. However, mainland licenses may have advantages for FBA/FBN fulfillment due to easier customs clearance for local deliveries.
Pure licensing takes 2-4 weeks. Complete setup, including banking and visas, realistically takes 2-4 months. Banking represents the longest variable in the process, often requiring 2-3 months.
VAT registration becomes mandatory if your annual taxable turnover exceeds AED 375,000. For non-resident businesses making taxable supplies in the UAE, registration is required within 30 days of the first taxable sale. Voluntary registration is possible once turnover exceeds AED 187,500, which can be beneficial for reclaiming input VAT on business expenses.
Yes, subject to minimum salary requirements. You need to earn at least AED 4,000 per month to sponsor your spouse and children. Sponsoring parents requires a minimum salary of AED 20,000 per month. You’ll also need valid residency proof and to meet other standard requirements.
Dubai CommerCity stands as the MENA region’s only dedicated e-commerce free zone ecosystem. This specialization brings real advantages for digital commerce businesses.
As we’ve covered throughout this guide, multiple license types with 100% foreign ownership and potential tax benefits create an attractive foundation. The total setup costs of AED 35,000 to 85,000+ in 2025 are competitive for what you receive. However, verify current pricing, as these costs may change.
Ultimately, Dubai CommerCity offers a compelling value proposition for the right business profile. Evaluate your specific needs, market focus, and growth plans against what this free zone delivers. For pure online businesses targeting international markets with plans to scale, Dubai CommerCity provides the infrastructure and ecosystem to support your growth.
Book your free consultation call today with the experts of JSB Incorporation to secure the right e-commerce license for your business setup.
Office No 20, 4th Floor, Al Moosa Tower 2,
Sheikh Zayed Road Dubai, United Arab Emirates P.O. Box 27614.
+971 4 824 4842
info@jsbincorporation.com

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