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Dubai CommerCity commences phase one of operations with launch of new facilities

Dubai CommerCity (DCC), the first dedicated eCommerce 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 a Dhs3.2billion, 2.1 million sqft project.

The launch of the new phase includes a built-up area of over 320,000 sqft of offices spaces in the Business Cluster. It also includes 145,000 sqft eCommerce 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 eCommerce, logistics and information technology to fashion, jewellery and electronics.

H.H. Sheikh Ahmed Bin Saeed Al Maktoum, Chairman of the Dubai Airport Freezone Authority (DAFZA), emphasised how the eCommerce industry has proven to be a key enabler of growth for companies and a new module adopted by many businesses to ensure business continuity because 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 eCommerce sector is key as its value is expected to reach USD148.5 billion by 2022 in the Middle East, Africa and South Asia regions,” he said.

“The GCC region is the fastest growing in the eCommerce sector, and the UAE comes in second place as it is expected to grow 38.3% Compound Annual Growth Rate (CAGR).

“The UAE is also ranked the fifth largest B2C products eCommerce market in sales within the Middle East, Africa and South Asia regions valued at USD4 billion. The UAE companies in eCommerce account for 6% of the list of the 100 largest companies in the sector within the Middle East, Africa and South Asia region.”

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 eCommerce free zone has signed agreements with Hellmann Worldwide and 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 utilise unique storage options and 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 eCommerce fulfilment 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 eCommerce software provider and Redbox Digital, a global digital consultancy and platinum Magento implementation partner.

Focused on offering ‘eCommerce-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.

eCommerce 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.

‘eCommerce-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.

His Excellency Dr. Mohammed Al Zarooni, Director General of DAFZA said: “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 eCommerce platform.

“It is set to attract specialised 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 eCommerce.”

The global eCommerce 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 have 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 eCommerce 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.