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Setting Up Electronics Business in Dubai

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UAE is considered as one of the leading countries in consumption of consumer electronics and appliances. According to the Euro Monitor, UAE hold second position in the world in consumer electronic consumption per capita, after Hong Kong. The pace at which UAE’s population is growing and with Expo 2020 round the corner, this activity is set to see enormous growth.

Dubai is popularly known as the electronics marketplace. The main reason for it to become an attractive place for electronic buyers is very well organized chain of retailers and wholesalers. Also, with developed stocking and warehousing facility and of course the reputation for reliability that has been built over the years has huge contribution behind the development of such market. The total turnover of consumer electronics in UAE is estimated to be of approximately USD 2.9 billion. The major demand for consumer electronics is related to re-exports and travelers. Low import duties & direct supplies from the manufacturers makes the prices in Dubai less by 15 to 20 percent compared to other markets in the region.

How to have an electronics business in Dubai?

You need to get an electronics business license to start trading in Dubai. It can be formed as a limited liability company. There are 40 different electronics trading activities, based on your requirement you have to select the option that suits your business description. Below are few lists of activities:

  • Refrigerators, Washing Machines & Household Electrical Appliances Trading
  • Mobile Phones Trading
  • Mobile Phones & Accessories Trading
  • Electrical & Electronic Appliances Spare Parts Trading
  • Computer Electric Accessories Trading
  • Audio-Computer Electric Accessories Trading
  • Visual, Recording Equipment & Accessories Trading
  • Photographic Equipment & Accessories Trading
  • Smart Machines & Spare Parts Trading
  • Type Writers, Photocopiers & Spare Parts Trading

There are many activities that can be clubbed in a single license, provided they have the same activity group.

Setting Up Electronics Business in Dubai

An increasing number of Japanese & South Korean companies have started their operations in Dubai in Jebel Ali Free Zone. Those dealing in products manufactured in China, Korea, Thailand, Malaysia are doing very well as they have very competitive pricing of the products.

When VAT was implemented in 2018, the consumer electronics faced a slower volume, as many consumers postponed their purchases due to the uncertainty. However in 2019, electronic devices were a major area of development for most of the market players. The manufacturers had more renewed and detailed focus on innovations and they enhanced the technology in the electronic devices. For instance, in almost all the smart phones, there was an improved display & resolution. Triple lens rear camera with built in features were also launched by major brands.

To sum it all I would just like to mention that the Expo 2020 is expected to benefit consumer electronics and an overall economic growth in UAE. Retail sales are expected to see strong annual growth in volume and current value. The companies are capitalizing on their strong portfolio of products and are offering wide range of pricing options. Most of the brands have tied up with the major banks & are offering many installment packages without interest, to make electronics buying more feasible and attractive.

This blog post is written by Ms. Divya, Senior Business Advisor at Flyingcolour business setup, accounting & VAT services in Dubai & across UAE. Call us for any business setup consultation in UAE. Please send inquiry to info[at]flyingcolour[dot]com or call +971 4 4542366.

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