Dubai CommerCity (DCC), the first dedicated e-commerce free zone in the Middle East, North Africa, and South Asia (MENASA) regions, has announced the launch of 470,000 sqft of new facilities as part of its first stage in line with its planned schedule. Dubai CommerCity is situated in the Umm Ramool area in Dubai and is an AED 3.2-billion, 2.1 million sqft project. The launch of the new phase includes a built-up area of over 320,000 sqft of office spaces in the Business Cluster. It also includes 145,000 sqft e-commerce logistics units and multi-client warehouses in the Logistics Cluster, which will be managed and operated by Hellmann Worldwide Logistics and DHL.
Given its strategic location and the increased demand for its facilities and services, the new free zone managed to lease more than 51% of the logistics warehouses to companies launching their operations in different sectors, ranging from e-commerce, logistics, and information technology to fashion, jewelry and electronics.
H.H. Sheikh Ahmed Bin Saeed Al Maktoum, Chairman of the Dubai Airport Freezone Authority (DAFZA), emphasized how the e-commerce industry has proven to be a key enabler of growth for companies and a new module adopted by many businesses to ensure business continuity as a result of the increased demand overall. He added that the acceleration of digital transformation within supply chains and trade because of the COVID-19 pandemic, has spurred companies to ensure continued operations which are picking up with great optimism in 2021.
“The launch of Dubai CommerCity aims to lead the future of e-commerce business in the region. The project has been thoroughly studied not only to provide foundational solutions but also to stimulate and support business and prosperity at a time when the sector is going through peak growth. The e-commerce sector is key as its value is expected to reach 148.5 billion US dollars by 2022 in the Middle East, Africa, and South Asia regions.”
“The GCC region is the fastest growing in the e-commerce sector, and the UAE comes in second place as it is expected to grow 38.3% Compound Annual Growth Rate (CAGR). The UAE has also ranked the fifth largest B2C products e-commerce market in sales within the Middle East, Africa, and South Asia regions valued at $4 billion. The UAE companies in e-commerce account for 6% of the list of the 100 largest companies in the sector within the Middle East, Africa, and South Asia region,” His Highness added.
His Excellency Dr. Mohammed Al Zarooni, Director General of DAFZA said: “The launch of the new Dubai CommerCity facilities comes inline within the planned schedule. Despite the global circumstances and the challenges posed by the COVID-19 pandemic, we have witnessed an urgent need to build a world-class e-commerce platform. It is set to attract specialized companies aiming to establish their regional headquarters in the emirate of Dubai, which helps them expand and develop their regional operations to be able to keep pace with the significant growth in e-commerce.”
“The global e-commerce sector is expected to grow 16.6% CAGR between 2019 and 2022. The Middle East, Africa, and South Asia region is also expected to grow 18.4%, the Middle East and North Africa region 24.9% and the GCC 32.9% CAGR.”
“Dubai CommerCity’s activities align with the strategies set out by the visionary leadership that has been placed to address the critical issues that have surfaced throughout the past months. The pandemic has redefined the nature of work in various sectors including e-commerce. During this period, the role of e-commerce has expanded and offered several solutions. It has also allowed the UAE to offer unprecedented opportunities to businesses across the region and globally,” added Al Zarooni.
The launch of the facility is supported by the strategic partnerships signed by Dubai CommerCity and aims to support businesses to run effectively and seamlessly. The e-commerce free zone has signed agreements with Hellmann Worldwide and Logistics DHL Express that complement the efforts to grow and enhance the portfolio of services that Dubai CommerCity provides. As part of the partnerships, Hellmann Worldwide will manage and operate a shared, multi-client warehouse within the logistics cluster of the free zone and clients will have access to last-mile delivery services through DHL Express.
Dubai CommerCity’s customers will also utilize unique storage options and a pay-as-you-go payment model which are highly cost-efficient and allow flexibility to scale their operations in line with demand. The strategic partnerships will allow for fast e-commerce fulfillment across the region and will provide a suitable and stable groundwork from where customers can grow businesses and enter new markets.
Hellmann will also provide end-to-end warehousing including services like order management systems and streamlined customs clearance processes. As part of end-to-end logistics services, Hellmann will also offer last-mile delivery services, through its last-mile partner DHL Express, from the warehouse directly to the consumer.
Dubai CommerCity has signed partnership agreements with Magento Commerce, a leading e-commerce software provider, and Redbox Digital, a global digital consultancy, and platinum Magento implementation partner. Focused on offering ‘E-Commerce-as-a-Service’, the collaboration will provide Dubai CommerCity customers with tailored access to e-commerce solutions and services that will enhance digital experiences and brand growth.
E-commerce needs vary from one company to another, as such, customers will be provided with start-up, B2B, B2C, and cross-industry solutions that have been exclusively designed for Dubai CommerCity to accelerate e-commerce adoption times. ‘E-commerce-as-a-Service’ offerings include special rates on key Magento software, pre-integration with payment gateways, third-party logistics systems, marketing affiliates, and analytics tools. A wide range of project services including consultancy, discovery and requirements building, testing major and minor customizations will also be provided by Redbox.
The free zone provides advanced opportunities for global and regional manufacturers, as well as distributors and global e-retailers while offering a vast array of tax and investment incentives. Divided into three main clusters – Business, Logistics, and Social, Dubai CommerCity seeks to encourage customers to adopt an active approach while doing business, meet the needs of logistics services providers and customers, and offer vibrant facilities that exceed the expectations of e-commerce companies looking to establish regional headquarters in Dubai.