JAFZA to use Dubai Custom’s eCommerce platform to boost trade

Dubai Customs signed an agreement with Jebel Ali Free Zone (JAFZA) to enable the latter to receive all the services and benefits Dubai Customs provides through its cross-border eCommerce platform.

The innovative platform utilises block chain technology to integrate and automate operations between Customs, Free Zones, logistics, and courier companies. It is the first of its kind in the region, and it aims to help the emirate become a global hub for e-commerce and encourage e-commerce companies set their businesses in Dubai.

This follows the leadership’s vision of increasing Dubai based companies’ local and regional distribution share of e-commerce trade in the emirate to Dhs24 billion by 2022 through decreasing cost of eCommerce operations by 20%. eCommerce is expected to contribute Dhs12 billion to the emirate’s GDP by 2023.

Abdullah Mohammed Al Khaja, Executive Director of Clients Management Division, Dubai Customs and Abdulla bin Damithan, Chief Commercial Officer, DP World, UAE Region signed the agreement, which will see Dubai Customs’ employees provide the eCommerce services to JAFZA to ensure best performance in enhancing Dubai external trade.

“Dubai Customs looks forward to developing the local competencies in eCommerce sector in support of the advancing eCommerce activity in Dubai and its success in attracting regional and global eCommerce platforms into the emirate,” said Al Khaja.

In the first half of 2020, the number of eCommerce parcels increased to 4.3 million marking a staggering 150% growth compared to the corresponding period in 2019.

He added: “We are enthusiastic to keep abreast with this growth and to help customers easily access the world’s markets in support of Dubai’s external trade and its role as a global hub for trade and tourism.”

Al Khaja further said: “Signing the agreement with JAFZA will help increase number of beneficiaries and will ensure best eCommerce services are delivered to JAFZA companies.”

Free Zone trade in Dubai touched Dhs227 billion in the first half of 2020, which makes 41% of the total trade value.

Commenting on the same, Bin Damithan said: “eCommerce and retail are promising sectors at JAFZA. The sectors combined grew 10.6% in the first half of 2020 making Dhs37.6 billion in revenues. There is also 300% increase in demand on eCommerce services. To this end, we contact companies registered with us to help them turn their business online.”