Dubai CommerCity (DCC), the first dedicated e-commerce free zone in the Middle East, North Africa and South Asia (Menasa) regions, has launched 470,000 sq ft 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 an AED3.2-billion ($871 million), 2.1 million-sq-ft project. The launch of the new phase includes a built-up area of over 320,000-sq ft of offices spaces in the Business Cluster. It also includes 145,000 sq ft of e-commerce logistics units and multi-client warehouses in the Logistics Cluster, which will be manaof ged 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 e-commerce, logistics and information technology to fashion, jewellery and electronics.

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

“The GCC region is the fastest growing in the e-commerce 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 e-commerce market in sales within the Middle East, Africa and South Asia regions valued at $4 billion. The UAE companies in e-commerce account for 6% of the list of the 100 largest companies in the sector within the Middle East, Africa and South Asia region,” he added.

Dr. Mohammed Al Zarooni, Director General of Dafza said: “The global e-commerce 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 e-commerce 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.

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 e-commerce free zone has signed agreements with Hellmann Worldwide and Logistics 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 e-commerce 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 e-commerce software provider and Redbox Digital, a global digital consultancy and platinum Magento implementation partner. Focused on offering ‘E-Commerce-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. – TradeArabia News Service