Dubai: 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 sq-ft 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 a Dh3.2-billion, 2.1 million sq.ft project. The launch of the new phase includes a built-up area of over 320,000 sq.ft of offices spaces in the Business Cluster. It also includes 145,000 sq.ft e-commerce logistics units and multi-client warehouses in the Logistics Cluster, which will be managed and operated by Hellmann Worldwide Logistics and DHL.
The new free zone managed to lease more than 51 per cent 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.
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,” said Sheikh Ahmed.
Fast growing sector
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 per cent Compound Annual Growth Rate (CAGR). The UAE is 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 per cent of the list of the 100 largest companies in the sector within the Middle East, Africa and South Asia region.
“The launch of the new Dubai CommerCity facilities comes in line 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,” said Dr. Mohammed Al Zarooni, Director General of DAFZA.
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.