First Dedicated E-Commerce Free Zone in the Middle East

The Middle East, Africa, and South Asia (MEASA) region’s first and largest specialized E-Commerce Free Zone has officially opened for business, marking a significant milestone for global e-commerce and trade. This Free Zone offers seamless business setup solutions for established firms while also providing integrated services to support the expansion of licensed e-commerce enterprises. Companies can benefit from exclusive service packages offered by global partners in logistics, information technology, and other industries. Spanning 2.1 million square feet and backed by an AED 3.2 billion investment, the Free Zone has already leased 30% of its facilities within just two months of its initial development phase.

Dr. Mohammed Al Zarooni, Director General of DAFZA, highlighted the significance of this achievement, stating, “What we achieved in the first phase of commercial operations is a crucial success in predicting the future of e-commerce and driving its expansion in the region. We have transformed an idea and a vision into a tangible, world-class facility that will inspire a new generation of entrepreneurs and innovators in just under three years of construction.”

Dubai CommerCity is structured into three primary clusters: the Business Cluster, the Logistics Cluster, and the Social Cluster. The Free Zone has announced plans to unveil additional office buildings in October 2022, along with the launch of Phase 2 of its Logistics Cluster. The strong leasing performance in the Free Zone’s first phase highlights its appeal to local, regional, and international businesses. This achievement further underscores the market’s enthusiasm for this unique Free Zone in the region.

To enhance customer support and service efficiency, Dubai CommerCity has also launched its customs office, which operates 24/7 to meet the customs-related demands of all its business partners. As part of its commercial operations launch, the Free Zone has introduced the ‘Early Bird Campaign,’ offering exclusive incentives to investors. Through this campaign, e-commerce businesses can benefit from up to 50% savings on company setup costs, making it an attractive opportunity for enterprises looking to establish their presence in the UAE and the broader MEASA region.

Strategically located near Dubai International Airport in the Umm Ramool area, Dubai CommerCity provides a comprehensive business environment tailored to support e-commerce enterprises. It offers a range of services, including e-commerce strategy consulting, regulatory guidance, end-to-end logistics solutions, warehousing, and last-mile delivery services. Additionally, businesses can access complete e-commerce platform solutions, digital marketing support, professional photography studios, and contact center services.

The Free Zone features state-of-the-art office spaces, storage facilities, and last-mile delivery solutions. Its world-class infrastructure includes scalable office spaces and flexible fulfillment centers, catering to businesses of various sizes and operational needs. DeVere Forster, Chief Operating Officer of Dubai CommerCity, emphasized the significance of this development, stating, “This is a historic and pivotal time for the UAE and the wider region, which for many years has been the epicenter for innovation and technical advancement. We observe the amazing shift of e-commerce and trade all around us daily, and now we have a dedicated home for its future growth and development. The ‘Early Bird Campaign’ is one of the numerous investment incentives offered by Dubai CommerCity to new clients, providing solutions with up to a 50% discount on company formation.”

Dubai CommerCity is set to revolutionize the e-commerce industry by offering innovative solutions, services, and opportunities for businesses of all sizes. Its impact on the e-commerce ecosystem will benefit investors and companies across the MEASA region. Recent reports, such as the second edition of the ‘MEASA E-Commerce Landscape: B2C Products Edition,’ highlight the rapid growth of e-commerce, particularly during the COVID-19 pandemic, when cross-border online sales in the Gulf region surged by 214% year-on-year by mid-2020. This upward trajectory is expected to continue, with the MEASA e-commerce market projected to reach $148.5 billion by 2022.

Each of the three clusters within Dubai CommerCity is uniquely designed to cater to different aspects of business operations. The Business Cluster consists of modern landscaped buildings featuring Grade A premium office spaces. The Logistics Cluster offers state-of-the-art dedicated and multi-client warehouse units with scalable pay-as-you-go pricing models. Meanwhile, the Social Cluster comprises restaurants, cafés, exhibition halls, and event spaces, fostering a dynamic and collaborative business environment.

In October 2022, Dubai CommerCity will further expand its offerings with the launch of new office towers B1 and B3, as well as the next phase of its Logistics Cluster. This continuous development underscores the Free Zone’s commitment to supporting the e-commerce sector and positioning Dubai as a global hub for digital commerce and innovation.

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