Dubai is a hub for electronics trade in the MENA region, with the presence of several electronics retail giants and a thriving e-commerce sector. Therefore, becoming a wholesale electronics distributor or a consumer electronics wholesaler can be appealing for several reasons.
It is a constantly growing and evolving industry, resulting in opportunities to provide retailers with the latest products. Additionally, the industry can be highly profitable, allowing wholesalers to earn a significant profit margin by purchasing products in bulk and offering value-added services. The industry is also fast-paced, offering a diverse and stimulating work environment and a sense of independence and ownership to business owners.
A Consumer Electronics Wholesaler would typically sell a wide range of electronic devices, gadgets, and accessories to retailers, resellers, and other businesses in the consumer electronics industry.
These products may include:
- Radio and TV equipment: This can include TVs, digital antennas, satellite receivers, and other related products.
- CD and DVD players and recorders: This can include CD players, DVD players, Blu-ray players, and recorders.
- Stereo equipment: This can include amplifiers, speakers, headphones, and other related products.
- Video game consoles: This can include gaming consoles, gaming accessories, and related products.
Ultimately, wholesalers act as intermediaries between manufacturers and retailers. This places them in the middle of the supply chain.
4649.03 Wholesale of Consumer Electronics
This business activity is focused on the wholesale of Consumer Electronics, which means that the business purchases electronic products in large quantities from manufacturers or distributors and resells them to retailers, resellers, or other businesses. The products they offer may include recorded audio and video tapes, CDs, DVDs, and various consumer electronics such as radio and TV equipment, CD and DVD players and recorders, stereo equipment, and video game consoles.
The wholesaler acts as an intermediary between the manufacturer and the retailer or reseller, offering them a range of products at a discounted price. By purchasing in bulk, the wholesaler can negotiate a better price with the manufacturer, which allows them to offer competitive pricing to their customers.
Exclusions
The wholesale of consumer electronics excludes the wholesale of blank audio and video tapes, CDs, DVDs, as these products are considered to be media storage and not consumer electronics. While they may be used with consumer electronics, they are not typically sold as part of the consumer electronics category.
Similarly, the wholesale of radio and TV broadcasting equipment is excluded from the consumer electronics category as this equipment is not typically sold to end-users or consumers. Instead, it is sold to radio and television stations, broadcast networks, and other commercial entities involved in the production and transmission of radio and TV signals.
Finally, the wholesale of office furniture is excluded from the consumer electronics category as it is not considered to be an electronic product. While some office furniture may include electronics, such as office chairs with built-in speakers or desks with integrated charging ports, these products are still primarily classified as furniture and are not considered to be part of the consumer electronics industry.
Third-Party Approvals – Post License
This business activity does not require third-party approval.
ESR
The Economic Substance Test (EST) is a requirement for certain types of enterprises in the UAE to be administered or guided from within the country, have a sufficient number of full-time employees located in the UAE, generate most of their income within the UAE, and have adequate assets and operational expenses in the UAE. This evaluation is reported through the submission of the Economic Substance Return (ESR) within one year of the fiscal year-end. Companies with fiscal years that started on or after January 1, 2019, and ended on or before December 31, 2019, for example, must file the notification, and even new companies must file an ESR the following year if this activity requires it.
Business activity 4649.03 is not subject to ESR.
AML
Designated Non-Financial Businesses and Professions (DNFBPs) are required to follow anti-money laundering laws and combat the funding of terrorism and illegal organisations by meeting the Ministry of Economy’s standards. An awareness campaign was held on April 30th, 2021, and existing licensees were already registered for goAML. Those who failed to comply with the requirements before the deadline will be subject to fines imposed by the Ministry of Economy. To avoid such penalties, new licensees must meet the requirements after obtaining their license.
Business activity 4649.03 is not subject to AML regulations.
