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hello again in this video i'm going to talk about some general points to consider when it comes to selling goods or items in the uae through social media platforms now whether it's food clothing household consumables homemade handicraft items beauty products or any other type of tangible goods selling these sorts of items online through social media platforms as part of some kind of business operation regardless of whether it is small scale or not is ultimately considered to be an e-commerce business activity and is therefore subject to certain rules and regulation in addition there are also consumer protection issues arising from this which can be important to keep in mind as well i'm going to briefly look at this under the following five general points number one the legal position around uae residents selling goods or items online through social media platforms number two what the potential risks are for doing it unlawfully number three what are some of the licensing options number four does it appear to be happening more often i'll touch on some examples and number five what are some of the current trends in this space so let's explore this topic a bit more in this video [Music] welcome back i'm yusuf ahmed and i'm an international lawyer originally from scotland and the uk my boutique practice specialises in all aspects of commercial law my work often involves international or multi-jurisdictional elements if you require any advice guidance or assistance with anything then feel free to get in touch the exponential and inexorable growth of the internet and in particular the various social media websites and platforms has provided almost limitless potential for connectivity on both a personal level and also in terms of earning a bit of extra income through selling things online social media platforms have rapidly become popular mediums through which people can advertise certain goods and products through their personal page connect with others and then sell their goods or items quickly and easily it's a very easy and simple way to start off a small kind of enterprise in this way from the comfort of your own home whether it is selling food items such as home-baked cakes or pastries for example or custom-made clothing that has been hand-stitched or put together in some special way perhaps with a unique design homemade handicraft items or even beauty products which could be homemade or are being sold as part of an existing stock there are so many different kinds of variations to this however is it really as simple and straightforward as posting and selling such goods or items through your social media page or profile i would highlight that if you are going to remember anything from this video it should be this key takeaway point any person conducting any form of economic or business activity in the uae needs to have a relevant license issued by a relevant licensing authority this overarching general rule applies to anyone in the uae resident or otherwise and includes those selling goods or items through social media platforms as part of some kind of business or enterprise it is essentially considered to be a commercial activity and therefore is subject to certain licensing requirements it is all too easy to be tempted into selling goods or items through popular social media platforms given how quickly and easily it can be done however from a legal standpoint it's not quite as simple and straightforward as posting and selling the goods or items through your social media page or profile under the letter of the law a relevant license is required there are clear risks involved for anyone doing this in the uae without a relevant license financial penalties for example could range anywhere between 20 000 durhams to half a million durhams depending on the nature and extent of the violation in addition if there are circumstances where there is a combination of serious violations then the penalties could be higher to minimize any potential risk in this regard it makes sense to simply acquire a relevant license which in many cases can be obtained in a relatively cost effective way so staying on the right side of the law does not necessarily have to be an expensive endeavor given that having a relevant license is a requirement here there are various options available for example the dubai department of economic development also known as the dubai ded has made available e-trader licenses as part of an initiative to help strengthen dubai's position as an e-commerce hub and this type of license is specifically aimed at in individuals looking to sell goods or items online including through popular social media platforms so that's an option and one of the potential advantages of that type of license is that there may be some more flexibility available on some of the usual red tape requirements such as having to have registered physical premises or commercial storage for goods or items the precise nature and scope of the specific advantages is subject to change from time to time so it is always a good idea to seek out advice if you need some guidance or up to date information about it other deds and other emirates have probably taken similar steps in making the same or similar licenses available certainly the dubai ded has recognized the ease in which people can sell goods or items through social media platforms and has perhaps also seen how this has been going on increasingly and as such has come up with flexible licensing options in order to facilitate and regulate the sale of goods or items through those channels a number of free zones in the uae also offer inexpensive e-commerce licenses which provides even more choice especially for those who might like to sell goods or items to a target market or focus on cross-border selling it might also be worth exploring whether a relevant freelancer permit is available from a licensing authority which covers selling goods or items through social media platforms i've made a video about freelancing in dubai so if this is something that is of interest to you then you might like to have a look at that video as well to learn a little bit more about how freelancing works in dubai a link to that video is in the description box below now coming back to the point on licensing options it's also worth highlighting that some folk sell perishable items through social media platforms such as cakes or other baked foods where these types of consumable items are being sold in addition to the requirement of a license additional approvals will typically be needed for those selling these sorts of items this really stems from a consumer protection standpoint as the sale of baked food items needs to meet strict hygiene requirements to ensure that it is safe for consumption as such individuals selling these sorts of items will need relevant external approvals and certifications from a relevant regulator or authority the importance of being properly licensed cannot be understated i have come across several examples of people turning to selling things through social media platforms selling things like home craft cakes and baked food items as well as the other examples that i mentioned earlier but because they are not properly licensed then they can't grow their business properly and aside from the risks that they are taking by doing this without having an appropriate license in place if one of their customers ends up falling ill from baked food items sold to them then that could become a very messy situation all around and the absence of a license could be the least of their worries i can also remember another example where stay at home moms were found to be making tailor-made clothes accessories and selling some beauty products they were basically running garment and beauty businesses from their homes and selling these items through social media platforms conducting this sort of business might appear seemingly innocuous however without an appropriate license it is ultimately risky business even before the pandemic there was an increasing trend in people utilizing popular social media platforms to sell goods or items often as a side hustle to begin with before turning it into a small enterprise following the unprecedented global lockdown restrictions this trend only increased even more although most if not all of the restrictions around physical movement etc are now in our rear view mirror selling things through social media platforms is arguably still as popular as ever and with there having been a common mainstream shift towards working from home or hybrid or blended working arrangements in general it doesn't look like this will let up anytime soon on the contrary perhaps it could be likely to be seen as an ongoing trend many people do choose to take advantage of the relative ease of selling goods or items through social media platforms it's a quick easy and efficient way to earn some income with little if any cost attached to it all of which makes it a very appealing and attractive proposition it's easily tempting and as a result some folk inadvertently end up assuming certain risks typically as a result of being unaware of the legal requirements around it in the uae in my experience once folk in the uae become aware of the legal aspects around selling goods or items online whether that is through popular social media platforms or otherwise they usually become keen to make their business legal and compliant with the relevant rules and regulations applicable to their business activities that is when they usually tend to reach out for expert advice more often than not they just need someone to help guide them with clear and sound advice on what they need to do and then help them do it and that's where someone like myself can step in to help advise and assist those entrepreneurs to get set up properly with their business and then be there to assist them with the journey as and when needed all right that's it for this one i hope you found this video useful any questions or queries then let me know and of course if you require any advice or assistance with anything then feel free to get in touch you can send me an email with your inquiry my email address is in the description box below and i would be delighted to assist you thanks a lot for watching and see you next time [Music] you