Shaikh Hamdan Bin Mohammad Bin Rashid Al Maktoum
Shaikh Hamdan Bin Mohammad Bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of Dubai Executive Council Image Credit: Dubai Media Office

Dubai: Shaikh Hamdan Bin Mohammad Bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of Dubai Executive Council, launched the emirate’s e-commerce strategy that aims to strengthen Dubai’s status as a global logistic platform and accelerate online commerce growth.

The strategy primarily aims to increase the contribution of e-commerce to Dh12 billion in the local economy by 2023, and increase regional and global share of e-commerce companies operating in Dubai to Dh24 billion by 2020. Such goals will be achieved by reducing the total cost of e-commerce operations by 20 per cent — including the costs of returned goods, storage, customs duties and VAT on transportation.

The key goal is to drive growth and support economic diversification policies, by motivating e-commerce companies to establish e-logistics distribution centres in Dubai and encouraging cloud computing service providers and leading companies to set up data centres in Dubai.

Creating a stimulating environment conducive to talent and providing a leading model for accelerating the growth of e-commerce are also among the goals set to be met.

The plan seeks to develop an integrated system to draw foreign direct investment into the e-commerce sector, to ensure the sector’s contribution to increasing FDI flows to Dubai, which has recorded strong growth in the first half of 2019, with attracting FDI projects worth Dh46.6 billion, a growth of 135 per cent compared to the same period last year.

The online commerce strategy was launched during the council’s meeting held in the presence of Shaikh Maktoum Bin Mohammad Bin Rashid Al Maktoum, Deputy Ruler of Dubai and First Deputy Chairman of the Executive Council.

Shaikh Hamdan said: “Dubai is among the fastest growing e-commerce markets in the Middle East and North Africa, bearing the fruits of adopting the best policies, strategic plans and smart government initiatives aiming at digital transformation. This is in line with the directives of His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.”

The strategy, prepared by the Dubai Free Zones Council (DFZC), in collaboration with Dubai Chamber of Commerce and Industry, Dubai Economy and Dubai Customs, aims to cement Dubai’s position as a global e-commerce platform for e-commerce.

“Dubai’s strategic plans have succeeded in increasing investor confidence in the sector and opportunities for its growth. The new e-commerce strategy builds on this extraordinary success achieved by the emirate,” Shaikh Hamdan said.