"Economy and tourism ": The UAE is a pioneer in the field of proactive economic legislation
Abu Dhabi, February 23, 2017 – His Excellency Abdullah Al Saleh, Undersecretary of the Ministry of Economy and Tourism, confirmed that the Trade Law through modern technological means has contributed to strengthening the UAE’s global leadership in the field of proactive economic legislation.
His Excellency described the law as the first integrated legal framework that regulates digital commerce and digital platforms in the world, and it was circulated with relevant international organizations as a reference legislative model for the governance of digital commerce, in a way that supports the goals of the We Are the Emirates 2031 vision, which affirms the priority of the digital economy and aims to enhance its contribution to the gross domestic product to 20% by 2031, and consolidate the country’s position as a global center for the new economy.
His Excellency said that the recently issued Cabinet Resolution No. (200) of 2025 regarding the list of violations and administrative penalties regarding acts committed in violation of the provisions of the Trade Law through modern technological means, constitutes an important milestone for strengthening the UAE’s legislative leadership in digital commerce, and continuing development and regulation efforts. This decision provides an effective executive and regulatory tool that contributes to implementing the provisions of the law.
The UAE has made great strides in achieving digital leadership after the size of the e-commerce market in the country exceeded 27.5 billion dirhams by the end of 2023, with expectations of compound annual growth exceeding 10%.
The country advanced to 13th place globally in the Global Digitization Index, while it topped the world in the percentage of Internet use, which reached 99% of the population, while more than 65% of online shoppers in the country prefer digital payment methods.
In this context, His Excellency Abdullah Al Saleh said that the issuance of the Trade Law through modern technological means came at a time when the world is witnessing rapid transformations in trade patterns and business models, and digital trade is no longer just an extension of traditional trade, but has become an integrated economic system that includes the operations of integrated digital platforms, including buying and selling, digital contracts, means of payment, logistics services, data flows, and the organization of commercial relationships, whether between merchants themselves or between the merchant and the consumer.
He added that this pioneering legislation contributed to creating the necessary legal environment to accommodate modern applications such as smart contracts and digital identity, in a way that enhances the reliability of digital contracts and ensures the integrity of transactions and verifies the identity of their parties according to the highest standards. He pointed out that the legislation is not directed to address a specific technology or regulate a specific means of digital commerce, but rather adopted a technology neutrality approach to include any current or future modern technical means, including digital platforms, smart applications, artificial intelligence technologies, block chains, and others.
His Excellency Al Saleh noted that this comprehensiveness provides long-term legislative stability, enhances the confidence of digital investors and merchants, supports digital innovation, and enables the market to grow and innovate within a transparent and safe regulatory environment that protects the consumer and the merchant, and contributes to the growth of digital businesses and new economy activities, especially since this law affects broad categories of the public, including merchants, investors, and entrepreneurs within the country, foreign investors, international companies, and various segments of society, given that digital commerce directly affects the daily lives of consumers.
The list of violations and administrative penalties included 11 violations that focused on aspects that affect the essence of trust in digital commerce, the most prominent of which is not providing a technically secure environment to verify the authenticity of the digital identity as well as the capacity and identity of digital contractors, violating the principle of transparency in displaying or advertising goods or services in a misleading or inaccurate manner, not disclosing the terms of the contract or fees associated with the service, including fees for digital payment or logistical services, not providing the consumer with a detailed electronic invoice, or violating his rights to return. Or replacing or refunding the amounts owed, or violating the announced specifications, in addition to not allocating clear and effective channels to receive and address complaints, or providing insurance coverage for digital commerce services and activities, or not cooperating with the regulatory and judicial authorities and refraining from providing them with the required information and data.
The regulation adopted a gradual and proportional approach in applying sanctions, which enhances the culture of legal awareness and sustainable understanding among the business community and consumers, increases voluntary compliance and establishes confidence in the digital commercial environment.
According to the regulations, procedures begin with a warning or warning, and then graduate to imposing financial fines commensurate with the nature, seriousness, and repetition of the violation, which range from 500 dirhams to 100,000 dirhams.
In cases of serious or repeated violations, the violator is subject to the penalty of temporary closure, which may extend from 20 to 90 days, or may reach final closure in some cases, as stated in the regulations. The continuation of the violation after issuing a warning is considered an independent violation requiring accountability, with the violator being obligated to pay the fine within a period not exceeding 30 days from the date of notification of the penalty decision, provided that the application of administrative penalties does not prevent taking any more severe measures or penalties stipulated in legislation. Other related.
The decision guarantees the right to file a grievance with the Ministry against administrative penalties within a period not exceeding (30) days from the date of notification, provided that the grievance is reasoned and accompanied by supporting documents, and it is decided upon within (30) days from the date of its submission.
His Excellency the Minister of Economy and Tourism shall issue, in accordance with the regulations, a ministerial decision regulating the investigation mechanism, and specifying the administrative penalties and the approved basis for their assessment, in a way that achieves proportionality between the penalty and the gravity of the violation.
The Ministry of Economy and Tourism affirmed its keenness to enable digital merchants to meet compliance requirements, clarify consumer rights and merchant obligations, and inform the public of dispute resolution channels. Awareness and oversight efforts are implemented in integration with economic development departments, municipalities, and authorities concerned with cybersecurity, communications regulation, and digital government, and in partnership with digital platforms.
More information about the regulation can be found on the website of the Ministry of Economy and Tourism at the link
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