New E-commerce Law in the UAE Adapts to Global Digital Commerce Trends

The new e-commerce law in the UAE takes a forward-thinking approach, aligning itself with international digital commerce trends. This law has been designed to accommodate the evolving landscape of digital businesses and enhance services for consumers within the country.

Emphasising the important role of entities responsible for licensing and regulating e-commerce, as well as logistic services and digital payment gateways, the law aims to foster a seamless operational framework for these sectors.

Consumer interests remain a key priority within this law, which protects intellectual property rights for purchases made through modern technology means. Furthermore, it introduces robust technological protection measures to ensure safe transactions and regulates the refund and exchange procedures for goods and services.

An essential aspect of this legislation is its authorisation of trade conducted via modern technology means, equating it to conventional methods and procedures.

Providing flexibility in dispute resolution, the law offers optional jurisdictions, including arbitration, while also introducing the principle of optional insurance coverage for obligations stemming from modern technological trade.

One of its core strengths lies in the integration of roles between federal and local entities across the e-commerce value chain. This flexibility spans requirements ranging from the Central Bank's digital payment gateway prerequisites to the Federal Tax Authority and TDRA's needs, alongside cybersecurity measures implemented by federal and local entities.

Moreover, it streamlines the shared responsibilities between federal and local entities concerning approvals for the digital transformation of businesses and the licensing requirements governed by economic development departments.

This law also introduces an optional authority to merge supervisory, regulatory, and judicial control operations for enhanced governance.

Catering to various relationships within digital commerce - from B2B to B2C dynamics - it effectively organises digital contracts, ensuring protection for online consumers and involved parties. In collaboration with relevant entities in the country, it orchestrates digital payment gateways.

The law's comprehensive nature addresses multiple facets of digital commerce, aiming to provide a conducive and well-regulated environment for e-commerce activities in the UAE.

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