Trade through modern technological means in the United Arab Emirates is governed by an integrated legal framework whose cornerstone is Federal Decree-Law No. 14 of 2023 on Trade through Modern Technological Means, which regulates online stores, digital merchants, and consumer rights in the digital environment. This law is complemented by the Consumer Protection Law No. 15 of 2020, Federal Decree-Law No. 46 of 2021 on Electronic Transactions and Trust Services, Federal Decree-Law No. 45 of 2021 on the Protection of Personal Data, and the tax legislation. In short, the law requires the digital merchant to obtain the necessary licences, provide a technically secure environment, disclose the goods and prices clearly, honour the right of return, protect customer data, and meet its tax obligations.

Which laws govern online stores and electronic transactions in the UAE?

What is meant by trade through modern technological means?

Federal Decree-Law No. 14 of 2023 defines trade through modern technological means as the buying and selling of goods, services, and related data in technological environments, or through websites, platforms, or smart applications — including transactions conducted via electronic or digital commerce or social-media channels — and it also covers non-digital goods and services obtained physically or virtually through such means. “Modern technological means” covers any electronic, digital, biometric, artificial-intelligence, or blockchain-based technology.

The “store” is the platform, website, or application that displays goods or services and enables the transaction to be completed digitally, while the “digital merchant” is the person who carries out this activity. Under this broad definition, the law covers independent stores, social-media platforms, and intermediary applications alike.

Licensing the online store and the digital merchant’s obligations

The law requires the digital merchant to satisfy the legal, regulatory, professional, and technical requirements and to obtain the necessary approvals, permits, and licences from the competent authority before carrying out the activity. It also requires providing a technically secure environment and meeting the standards of electronic and cyber security and anti-piracy, so that the consumer can browse and purchase safely.

The law prohibits selling any goods or services that may not lawfully be sold, or selling anything that requires special approvals before obtaining them. Merely creating an online store is therefore not enough: the activity must be licensed by the competent authority (such as the Department of Economic Development in the relevant emirate) and compliant with the technical and security requirements before accepting orders.

Consumer rights in electronic transactions

Federal Decree-Law No. 14 of 2023 safeguards consumer rights in digital trade, and Consumer Protection Law No. 15 of 2020 reinforces this protection by expressly regulating electronic commerce. Among the most prominent of these rights are the consumer’s access to accurate explanatory data about the goods or service, clear disclosure of the final price, the prohibition of unfair terms that harm the consumer, and the use of the Arabic language in data, advertisements, and contracts.

The consumer also has the right to claim compensation for harm resulting from a defect in the goods or a shortcoming in the service, and the supplier is bound by the warranty and after-sales-service provisions set out in the Consumer Protection Law.

Return of goods and services and refunds

Federal Decree-Law No. 14 of 2023 regulates the return of goods and services, granting the consumer the right of return in accordance with the controls, cases, and periods set by the regulation and the implementing decisions of the law. Consequently, the digital merchant must announce a clear, written return policy setting out the cases in which returns are accepted, the refund mechanism, and the period available, consistent with the law and its regulation.

The evidential weight of electronic contracts, signatures, and records

Federal Decree-Law No. 46 of 2021 on Electronic Transactions and Trust Services grants the electronic record legal weight and gives contracts formed by electronic means their legal effects once their conditions are met. It also regulates the electronic signature and seal, determines the time and place of dispatch and receipt of the electronic record, and recognises the admissibility and evidential weight of electronic evidence.

Accordingly, a contract concluded through an online store is valid and binding, and the electronic record and signature serve as evidence before the judicial authorities once they satisfy the conditions set out in the law, protecting both parties to the digital transaction.

Protecting customer data in the online store

Federal Decree-Law No. 45 of 2021 on the Protection of Personal Data requires anyone processing customer data to comply with the controls for lawful processing, to obtain the data subject’s consent under the prescribed conditions, to fulfil the controller’s general obligations, and to secure personal data. The law also grants the data subject the right to obtain information about the processing of their data.

The online store must therefore clarify its privacy policy, collect data only within the lawful purpose, and take the technical and organisational measures needed to protect it against breach or disclosure.

The online store’s tax obligations

The online store’s activity is subject to Federal Decree-Law No. 8 of 2017 on Value Added Tax, so the merchant must register for tax upon reaching the registration threshold, issue tax invoices, and collect and remit the tax to the Federal Tax Authority in accordance with the rules. Tax compliance is part of the legitimacy of the digital business, particularly as e-commerce expands across the country.

Administrative penalties and violations

Federal Decree-Law No. 14 of 2023 sets out provisions for administrative penalties, and Cabinet Resolution No. 200 of 2025 was issued on the schedule of administrative violations and penalties for acts committed in breach of the law. The Resolution allows the Ministry to impose one or more penalties on anyone committing the violations listed in the attached table — such as failing to provide a secure environment or breaching the standards announced by the digital merchant — with the penalty escalating according to the recurrence and gravity of the violation.

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This content is published to spread legal culture and enhance community awareness. It is not legal advice for a specific case and is no substitute for consulting a specialised lawyer. The applicable legal texts remain the authoritative reference and may be subject to later amendments. We recommend contacting the firm for advice suited to the circumstances of your case.

In case of any discrepancy, the Arabic version of this content shall prevail.