Pornography and many types of sex toy are banned in the UAE.
The 31-year-old was apprehended by police after a sting operation conducted by an undercover officer posing as a buyer wanting to buy a sex doll.
Police say the woman had been selling the products via Facebook and Whatsapp. A raid was then carried out on her flat, where 1,124 sex dolls and sexual enhancement devices were found.
The defendant pleaded not guilty before the Dubai Misdemeanours Court.
The Egyptian national said that the confiscated items were for personal use and accused Dubai police of illegally enforcing the law against her.
The Misdemeanour Court found her guilty and fined her Dh5,000 ($1,360), however prosecutors have appealed for a harsher punishment.
An appeal by the defendant was rejected, with the appeal court increasing her penalty to a month in jail and deportation.
After taking the case to Dubai’s Court of Cassation, however, the woman was able to have the ruling overturned. The court ruled on Monday that a fresh trial should be held with a fresh panel of judges.
Last year, a Ukranian businessman in Dubai was jailed for a month for possessing over 150 sex toys and promoting their sale on social media networks.