Ministry of Economy introduces trade law through modern technological means

The Ministry of Economy held a press conference this Wednesday to present Federal Decree-Law No. 14 of 2023 on Commerce through Modern Technological Means (e-commerce) in line with the country’s strategic direction for digital transformation.

The law aims to stimulate the growth of trade through advanced technologies and the development of smart infrastructure in the country. It supports the UAE’s attractiveness for investment and enhances its leadership as a global business and trade hub.

Abdullah Ahmed Al Saleh, Undersecretary of the Ministry of Economyemphasized that the UAE is in a constant transition towards a new economic model that has resilience, innovation and entrepreneurial thinking as key pillars.

In addition, the country has a competitive and flexible economic and legislative environment at a regional and global level and offers an attractive business climate for businessmen, investors and entrepreneurs from around the world.

In his speech during the briefing, he said:

“We are witnessing a new milestone in the country’s efforts to achieve sustainable economic and social development through the enactment of the new e-commerce law. The law is part of the integrated legislative updates undertaken by the UAE government to accelerate the transition towards a new economic model and achieving higher levels of competitiveness for the business and commercial environment of the country.”

He continued,

“The new law is an integrated framework for the development of the legislative and regulatory environment for trade carried out through modern technical means in the country, in line with global best practices in this regard. It will help our efforts to achieve the national objective to increase the UAE’s position as number one globally in developing proactive legislation governing new economic sectors, in light of the ‘We, the UAE 2031’ vision.”

He Ministry of Economy worked together with its federal and local stakeholders and in partnership with the private sector and relevant experts to develop the articles of the law in a flexible and forward-looking manner. This supports the sustainability of the national economy and improves its competitiveness in light of the early 1950s and the Centenary of the United Arab Emirates 2071.

Furthermore, he explained that the new law is particularly important as it is the UAE’s main federal legislation governing e-commerce. It has been designed to improve the business environment in the country by making it easier to do business and hire, improving its efficiency, reducing the cost of doing business and improving stability.

During the press conference, Al Saleh He highlighted the provisions and outcomes of the law that affirm the UAE’s vision for the sector. These include:

• The new law is compatible with international trends in digital commerce and adopts a flexible approach in legislation to streamline business and facilitate services to consumers in the country.

• Highlights the key role of the entities and authorities responsible for licensing and regulating electronic commerce, as well as associated logistics services and digital payment gateways.

• Does not impose new requirements on digital merchants or providers of other services.

• Protects the interests of consumers, both in terms of safeguarding intellectual property rights related to the purchase of goods or services through modern technological means, and in terms of the provision of sufficient technological protection measures to enable consumers to purchase goods and services securely, as well as regulate the reimbursement and exchange of goods and services.

• Legally authorizes trade conducted through modern technological means, making it similar to trade conducted through traditional methods and conventional procedures.

• Provides optional jurisdictions for dispute resolution, including arbitration, and introduces the principle of optional insurance coverage in respect of obligations arising from commerce through modern technological means.

• Integrates the roles of federal and local entities involved in the entire e-commerce value chain, enabled by flexible legislation for those entities, starting with the Central Bank’s requirements on digital payment gateways, followed by the Authority’s requirements Federal Prosecutor and the TDRA, in addition to the security requirements of federal and local entities regarding cybersecurity.

• Regulates the shared roles of federal and local entities involved with respect to the requirements and necessary approvals of local entities involved with the digital transformation of business activities and e-commerce licensing requirements of economic development departments.

• Creates an optional authority for the integration of supervision, regulation and judicial control operations.

• Organizes the relationship between merchants (B2B) and the relationship between the digital merchant and the consumer (B2C).

• Applicable to the country’s free zones, in addition to financial free zones, with respect to activities that are not related to financial activities.

• Organizes the relationship between parties to digital contracts and protects online consumers and relevant parties.

• Supports the exploitation of technological advancements and the communications revolution to increase trade growth through modern technology, especially in times of crisis and emergencies, as well as utilizing the UAE’s infrastructure and logistics and transportation sectors .

• Organize digital payment gateways in coordination with the relevant entities in the country.

• Adopts the approach of imposing fines since the Ministry of Economy, in coordination with the competent authority, has the mandate to prepare a list of infractions and administrative sanctions for actions committed in contravention of the provisions of this law, and issued by a Resolution Cabinet.

• Responsibilities of the Ministry of Economy regarding the new law.

The electronic commerce law imposes a specific set of responsibilities on the Ministry of Economy, which includes proposing and preparing a general e-commerce policy in coordination with the relevant authority and supervising its implementation after obtaining approval from the Cabinet. It also includes the issuance of specific terms and conditions for the protection of consumer interests to achieve the objectives of the new law, and coordinate with the competent authority regarding the blocking of any application, website or platform when actions are carried out that violate What is established in this law arises that affect public order or morality.

Furthermore, the law grants Ministry of Economy the right to coordinate with the competent authority to comply with tax compliance requirements, the requirements of customs authorities and other relevant authorities in this regard.

The law clarifies the criteria that must be met to conduct business and commercial activities through modern technological means in the UAE. These include:

• Possession of legal capacity

• Compliance with all legal, regulatory, professional and technical requirements.

• Necessary approvals, permits and licenses from the competent authority to conduct business through modern technological means and physical store.

• A secure technological infrastructure to offer electronic commerce services

• Compliance with cybersecurity and anti-piracy requirements and standards specified by the competent authority, ensuring that consumers can browse and purchase goods or services safely.

Traders may only sell goods and services that are legally permitted to be sold in the country and must refrain from selling goods or services that require special approval from the competent authority before obtaining such approvals. They must also comply with the conditions and requirements approved by the competent authorities regarding promotional and marketing campaigns and the exchange of customer data in this regard.

They must also refrain from engaging in deceptive practices or providing false information that does not accurately describe products or services. Customers should be issued a detailed digital invoice for purchases made through modern technological means.

News source: Emirates News Agency