Questions & Answers
Setting up a drop-shipping business in the UAE
We are setting up a dropshipping business in the UAE & KSA which will be merely an online store with no physical operations in the targeted countries.
Our suppliers will have full ownership of sold products, though the product’s journey and the delivery will be via the suppliers' courier partners. We would like to inquire about the following:
Is it required to obtain a license in UAE/KSA? If yes, which license? E-commerce or e-trading?
What’s the least costly free zone set-up in the UAE?
Can we establish an entity in another country (outside UAE/KSA)? Any startups-friendly country?
Thank you!

Hi,
I trust you are well.
Any individual seeking to carry out business in the UAE is legally required to obtain the relevant license(s) prior to doing so. Based on the description you have provided, e-commerce will in fact be the most suitable business activity.
Moreover, considering the nature of the business, general trading activity will also be required. In terms of where to set-up your company in and outside the UAE/KSA (in the most cost-effective way possible), we are happy to further discuss and initiate accordingly.
Please contact us via email.