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Dubai Launches Multi-Billion Dirham E-Commerce Free Zone Commercity

The new facilities include office spaces as well as e-commerce logistics units and multi-client warehouses with 470,000-sq-ft of office spaces and warehouses.

Dubai CommerCity (DCC), the first dedicated e-commerce free zone in the Middle East, North Africa and South Asia (MENASA) regions, has launched the first phase of their new facilities, stretching out at 470,000 sq. ft.

The launch of the facility is buttressed by the strategic partnerships signed by the e-commerce free zone which aims to support businesses to run seamlessly and efficiently. The Dubai CommerCity has signed agreements with Hellmann Worldwide and Logistics DHL Express to enhance their services. 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.

“The launch of Dubai CommerCity aims to lead the future of e-commerce business in the region,” said Sheikh Ahmed Bin Saeed Al Maktoum, Chairman of the Dubai Airport Freezone Authority. “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 e-commerce sector is key as its value is expected to reach 148.5 billion US dollars by 2022 in the Middle East, Africa and South Asia regions.”

Given its strategic location, the new free zone has already leased more than 51% of its logistics warehouses to companies operating in a variety of sectors, ranging from e-commerce, logistics and information technology to electronics, fashion and jewellery. Dubai CommerCity is also offering storage options and a pay-as-you-go payment model to ensure flexibility and cost efficiency.

Additionally, Dubai CommerCity will provide ‘e-commerce-as-a-service’ through special partnerships agreements with e-commerce software provider Magento Commerce and digital consultancy Redbox Digital. This will allow them to offer special rates on key Magento software, pre-integration with payment gateways, third party logistics systems, marketing affiliates and analytics tools. Redbox will provide project services such as consultancy, discovery and requirements building, as well as testing major and minor customisations.

The global e-commerce sector is expected to grow 16.6% CAGR between 2019 and 2022, while the MENASA region is anticipated to see 18.4% during that same period. Numbers in the MENA and GCC regions are higher, at 24.9% and 32.9% respectively.