Dubai CommerCity (DCC), the first dedicated eCommerce free zone in the Middle East, North Africa and South Asia (MENASA) regions, has launched its new facility of 470,000 square feet as part of the initial phase.
The $871 million worth, 2.1 million sq ft free zone is being built in the Umm Ramool area in Dubai, close to Dubai International Airport. The launch of the new phase will include a built-up area of over 320,000 sq. ft of office spaces in the Business Cluster and 145,000 sq. ft eCommerce logistics units and multi-client warehouses in the Logistics Cluster, which will be managed and operated by Hellmann Worldwide Logistics and DHL.
The new free zone has managed to lease over 51 percent of the logistics warehouses to companies launching their operations in different sectors, ranging from eCommerce, logistics and information technology to fashion, jewelry and electronics.
Dubai announced plans for CommerCity to be the first dedicated eCommerce free zone in the wider Middle East, North Africa and South Asia region in 2017.
“The launch of Dubai CommerCity aims to lead the future of eCommerce business in the region. The project has been thoroughly studied not only to provide foundational solutions but also to stimulate and support business and prosperity at a time when the sector is going through peak growth. The eCommerce sector is key as its value is expected to reach $148.5 billion by 2022 in the Middle East, Africa and South Asia regions.”
The GCC region is the fastest-growing in eCommerce and the UAE holds second place in it, with an expected compound annual growth rate of 38.3 percent. Further, the eCommerce companies in the emirates account for 6 percent of the list of the 100 largest companies in the sector within the Middle East, Africa and South Asia region.
“Despite the global circumstances and the challenges posed by the COVID-19, we have witnessed an urgent need to build a world-class eCommerce platform. It is set to attract specialized 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,” says Mohammed Al Zarooni, director-general of Dubai Airport Freezone Authority (DAFZA).
The launch of the facility is supported by the strategic partnerships signed by DCD and aims to support businesses to run effectively and seamlessly. The free zone has signed partnerships with eCommerce software provider Magento Commerce and consultancy Redbox Digital to offer an ‘eCommerce as a service’ package to online retailers. Storage built at the site will be offered under a ‘pay as you go’ model to allow companies to scale their operations in line with demand.
As part of the partnership, 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.