The Ministry of Economic system held a media briefing on Wednesday to introduce Federal Decree Legislation No. 14 of 2023 on Commerce by Trendy Expertise Means (e-commerce), consistent with the nation’s strategic route for digital transformation.
The legislation goals to spice up commerce development by superior applied sciences and improvement of sensible infrastructure within the nation. It helps the UAE’s attractiveness for funding and strengthens its management as a worldwide enterprise and commerce hub.
Abdullah Ahmed Al Saleh, Undersecretary of the Ministry of Economic system, emphasised that the UAE is steadily transitioning to a brand new financial mannequin that has resilience, innovation and entrepreneurial considering as its key pillars.
Moreover, the nation enjoys a aggressive and versatile financial and legislative surroundings on the regional and world ranges, providing a pretty enterprise surroundings for entrepreneurs, buyers and entrepreneurs from all around the world.
Talking on the briefing, he mentioned: “We’re witnessing a brand new milestone within the nation’s efforts to realize sustainable financial and social improvement with the promulgation of the brand new e-commerce legislation. The legislation is a part of the built-in legislative updates which were applied. by the UAE authorities to speed up the transition to a brand new financial mannequin and obtain a better degree of competitiveness for the nation’s enterprise and commerce surroundings.
He continued: “The brand new legislation is an built-in framework for creating the legislative and regulatory surroundings for commerce performed by trendy technical means within the nation, consistent with world finest practices on this space. It can assist our efforts to realize nationwide targets. goal to raise the UAE’s place to the primary place globally in creating proactive laws for brand spanking new financial sectors, in gentle of the ‘We the UAE 2031’ imaginative and prescient.”
The Ministry of Economic system labored with its federal and native stakeholders and in partnership with the personal sector and related consultants to develop the authorized articles in a forward-looking and versatile method. This helps the sustainability of the nationwide financial system and improves its competitiveness in gentle of the ideas of the 50 and the UAE Centennial 2071.
Moreover, he defined that the brand new legislation is especially necessary as it’s the UAE’s most necessary federal laws relating to e-commerce. It’s designed to enhance the nation’s enterprise surroundings by facilitating enterprise and contracting, rising its effectivity, decreasing the price of doing enterprise and rising stability.
Through the media briefing, Al Saleh highlighted the provisions and achievements of the legislation that affirm the UAE’s imaginative and prescient for the sector. These embody:
• The brand new legislation is suitable with worldwide digital commerce developments and takes a versatile strategy to laws to streamline companies and facilitate companies for customers within the nation.
• Emphasizes the important thing function of entities and authorities answerable for licensing and regulating e-commerce, in addition to related logistics companies and digital fee gateways.
• Doesn’t impose new necessities on digital merchants or suppliers of different companies.
• Protects shopper pursuits, each when it comes to defending mental property rights referring to the acquisition of products or companies by trendy technological means, and offering enough technological safety measures to allow customers to buy items and companies safely, in addition to regulate the reimbursement and trade of products and companies.
• Legally permits commerce carried out utilizing trendy technological means, making it akin to commerce carried out by conventional strategies and traditional procedures.
• Offers non-obligatory jurisdictions for dispute decision, together with arbitration, and introduces the non-obligatory insurance coverage protection precept in respect of liabilities arising from buying and selling by trendy technological means.
• Integrates the roles of federal and native entities concerned in all the e-commerce worth chain, enabled by versatile laws for these entities, beginning with the Central Financial institution’s necessities on digital fee gateways, adopted by the necessities of the Federal Tax Authorities and the TDRA, along with the safety necessities of federal and native entities relating to cybersecurity.
• Regulates the shared roles of the federal and native entities concerned relating to the necessities and crucial approvals of the native entities concerned within the digital transformation of enterprise actions and the e-commerce licensing necessities of financial improvement departments.
• Creates an non-obligatory authority for the mixing of supervisory, regulatory, and judicial management operations.
• Organizes the connection between the retailers (B2B) and the connection between the digital service provider and the buyer (B2C).
• Relevant to free zones within the nation, along with monetary free zones, relating to actions not associated to monetary actions.
• Organizes the connection between events of digital contracts and protects on-line customers and related events.
• Helps the exploitation of technological advances and the communications revolution to extend commerce development by trendy expertise, particularly in instances of crises and emergencies, whereas additionally leveraging the UAE’s infrastructure, logistics and transportation sectors.
• Organizes digital fee gateways in coordination with related entities within the nation.
• approves the strategy to imposing fines, because the Ministry of Economic system, in coordination with the competent authority, has been instructed to attract up a listing of violations and administrative sanctions for actions in violation of the provisions of this legislation have been dedicated and have been issued by a cupboard resolution.
• Duties of the Ministry of Financial Affairs with regard to the brand new legislation.
The e-commerce legislation imposes a selected set of tasks on the Ministry of Economic system, together with proposing and getting ready a common e-commerce coverage in coordination with the related authority and monitoring its implementation after Cupboard approval. It additionally contains issuing particular situations for the safety of shopper pursuits to realize the targets of the brand new legislation, and coordinating with the competent authority relating to the blocking of functions, web sites or platforms when actions battle with the provisions of this legislation. legislation arises that impacts public order or good morals.
As well as, the legislation grants MoEc the fitting to cooperate with the competent authority to fulfill tax compliance necessities, the necessities of customs authorities and different related authorities on this regard.
The legislation clarifies the standards that have to be met to conduct enterprise and commerce actions within the UAE utilizing trendy technological means. These embody:
• Possession of authorized capability
• Compliance with all authorized, regulatory, skilled and technical necessities
• Crucial approvals, permits and licenses from the competent authority for conducting enterprise by trendy technological means and the bodily retailer
• A safe technological infrastructure for providing e-commerce companies
• Compliance with cybersecurity and anti-piracy necessities and requirements as specified by the competent authority, guaranteeing that customers can safely view and buy items or companies.
Sellers could solely promote items and companies which can be lawfully offered within the nation and should chorus from promoting items or companies that require particular approval from the competent authority earlier than acquiring such approval. They need to additionally adjust to the situations and necessities accredited by the competent authorities relating to promotional and advertising campaigns and the sharing of buyer information on this regard.
They need to additionally chorus from deceptive practices or offering false data that doesn’t precisely describe the products or companies. An in depth digital bill for purchases made by trendy technological means must be supplied to prospects.
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