The trade law has contributed to strengthening the UAE's global leadership in the field of economic legislation.

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 Digital Trade Governance.. The UAE Leads in Economic Legislation

Abdullah Al Saleh, Undersecretary of the Ministry of Economy and Tourism, affirmed that the law governing trade through modern technology has contributed to strengthening the UAE's global leadership in proactive economic legislation.

He described the law as the first comprehensive legal framework regulating digital trade and digital platforms worldwide. It has been circulated among relevant international organizations as a benchmark legislative model for digital trade governance, supporting the objectives of the UAE Vision 2031, which prioritizes the digital economy and aims to increase its contribution to GDP to 20% by 2031, solidifying the UAE's position as a global hub for the new economy.

The UAE has made significant strides in achieving digital leadership, with the e-commerce market exceeding AED 27.5 billion by the end of 2023, and projected to have a compound annual growth rate exceeding 10%.

The UAE advanced to 13th place globally in the Global Digitalization Index, while leading the world in internet penetration, with 99% of the population online. More than 65% of online shoppers in the country prefer digital payment methods.

The regulations adopt a graduated and proportionate approach to penalties, fostering a culture of legal awareness and understanding among businesses and consumers, increasing voluntary compliance, and strengthening trust in the digital business environment.

According to the regulations, procedures begin with a warning or notice, then escalate to financial penalties commensurate with the nature, severity, and frequency of the violation, ranging from AED 500 to AED 100,000.

In cases of serious or repeated violations, the violator is subject to temporary closure, which may extend from 20 to 90 days, or, in some cases, may lead to permanent closure, as detailed in the regulations. Continued violation after a warning is issued constitutes a separate offense requiring accountability. 

The violator is obligated to pay the fine within 30 days of being notified of the penalty decision. The application of administrative penalties does not preclude the application of any more severe measures or penalties stipulated in other relevant legislation.

The decision guarantees the right to appeal administrative penalties to the Ministry within 30 days of notification. The appeal must be reasoned and accompanied by supporting documents, and a decision will be issued within 30 days of its submission.

The Minister of Economy and Tourism, pursuant to the regulations, will issue a ministerial decree regulating the investigation mechanism and specifying the administrative penalties and the criteria for their assessment, ensuring proportionality between the penalty and the severity of the violation.

The Ministry of Economy and Tourism affirmed its commitment to empowering digital merchants to meet compliance requirements, clarifying consumer rights and merchant obligations, and informing the public about dispute resolution channels. 

Awareness and monitoring efforts are implemented in coordination with economic development departments, municipalities, cybersecurity and telecommunications regulatory bodies, and the digital government, in partnership with digital platforms.