The first-of-its-kind initiative in the region specifically catering to the e-commerce industry, Dubai Commerce is on track to open by the end of 2020. A joint venture between Dubai Airport Freezone Authority (Dafza) and property developer Wasl worth Dh3.2 billion, will leverage the fast-growing e-commerce market which is expected to grow 13 percent to $26 billion by 2022.
The GCC e-commerce market will value $11 billion and UAE is expected to contribute $4.6 billion to the region’s e-commerce industry.
“The need for world class e-commerce services has never been greater. Having previously identified the region’s growing e-commerce market and given the traction witnessed by clients (going) online due to the pandemic, we are on track for the scheduled opening by the end of 2020.”
The first structures are presumed to be prepared and filled in November, with phased openings until the project is completed in 2023. Like the other free zones running in the emirate, CommerCity will advance no corporate tax, no income tax, 100 percent foreign ownership, full repatriation of capital and profit and no currency restrictions.
The free zone will accommodate 12 buildings including a business cluster, logistics center and a social center.
Dubai Economy has published that 943 ‘DED Trader’ licenses were distributed in the first quarter of 2020, an improvement of 179 percent over the same period last year as online shopping earned fresh impulse following the outbreak of coronavirus in the UAE and worldwide.
Dr. Hashim Al Nuaimi, director at the UAE’s Ministry of Economy’s Consumer Protection Department, recently stated that all firms and individuals trading in e-commerce have to enroll with the economic departments in their particular emirates in order to strictly observe the delivery and quality of goods.
“We ask people selling goods through app and e-commerce websites to register with the economic departments. We need trust from consumers that the items that they purchased online are controlled by the government. In case of any issue with the item purchased online, customers can communicate with an outlet or a government body. All e-commerce trade in the UAE by the private sector will be governed by the consumer protection department,” Dr. Al Nuaimi added.