H.H. Sheikh Ahmed Bin Saeed Al Maktoum, chairman of the Dubai Airport Freezone Authority (DAFZA), launched 'Dubai CommerCity,' an AED 2.7 billion (US$ 735 million), joint venture between DAFZA and Wasl Asset Management Group, in the Umm Ramool area.
It is the first free zone dedicated to ecommerce in the MENA region, and intends to promote Dubai's position as a platform for international ecommerce and to support economic diversification and smart transformation strategies.
The project will accelerate the growth of the ecommerce market and will provide an environment that stimulates creativity and attracts more direct foreign investments in line with Dubai Plan 2021 which aims to create a unique and sustainable economy based on innovation.Dubai CommerCity has exceptional competitive advantages that make it one of the most attractive free zones for foreign direct investment in the regional markets.
The new free zone is located near the Dubai International Airport, and spans a total area of 427,000 square meters inclusive of office spaces and logistics units covering 207,000 square meters. Its total leasable area is 176,000 m2 and its infrastructure and parking areas reach 220,000 m2, with 4,000 parking slots for its customers.
The free zone is divided into three clusters: The Business Cluster, the Logistics Cluster and the Social Cluster. The project will be implemented in two phases and will be an ideal opportunity for major regional and international manufacturers to store their goods, products and spare parts in technology-enabled warehouses, to be shipped later to the local markets in record time via ecommerce.
The new free zone will drive steadily growing private investment activities supporting the region's startups which have already exceeded $870 million, especially as most startups are involved in e-commerce, IT and Internet-based services, of which the UAE has the largest share in the region. Over the next five years, the e-commerce sector is projected to account for ten percent of the Emirate of Dubai's retail sales, which are in turn expected to reach AED 200 billion ($54.4 billion) by the end of 2017.