A new free trade zone for e-commerce dubbed “Dubai Commercity” is the first of its kind in the region and will provide a base for online retailers.
The new 2.1-million-square-foot hub is dedicated to the growing e-commerce market in the Middle East and North Africa. The 3.2 billion dirham ($871 million) investment “provides a unique e-commerce ecosystem to global and regional brands to help them set up and operate their e-commerce business in the MENA region,” the project’s website said.
The city will consist of clusters for business, logistics, and social activities, and is a joint venture between the Dubai Airport Freezone Authority and property firm Wasl.
“The need for world class e-commerce services has never been greater,” Mohammed al Zarooni, director general of the airport free zone said to CNN.
“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 developers have said the coronavirus has not hindered their progress, but instead has boosted it, CNN reported.
The regional e-commerce retail market is expected to grow 20 percent in the next five years, according to figures from Commercity’s website. In the GCC, it should see $11 billion growth in five years.
Surging smartphone ownership has contributed to e-commerce’s popularity, with smartphone usage reaching nearly 100 percent among GCC millennials.
With many shut indoors because of coronavirus lockdowns that have also led to businesses temporarily shuttered – though many are now beginning to gradually reopen – more are turning to online shopping.
“Dubai Commercity is a new push for a non-traditional economy based on Innovation and Smart transformation,” a statement from Sheikh Ahmed bin Saeed Al Maktoum, the chairman of Dubai’s airports, said on the new city’s website.
CNN reported that agreements have been made with companies that will operate on the premises, but developers say they cannot yet be made.
Tenants will pay no corporate or income tax and will benefit from state-of-the-art infrastructure and a “high-end modern business community zone.”
The business cluster will have 12 buildings with 175,000 square meters of leasing space.
Sustainability will be a top priority, as the UAE aims to reduce its carbon footprint by 25 percent by 2030.
Coronavirus: Sheikh Mansoor bin Mohammed praises Dubai's proactive COVID-19 responseSheikh Mansoor Bin Mohammed, the chairman of Dubai’s Supreme Committee of Crisis and Disaster Management, said on Friday that the proactive approach ... Coronavirus
Around 70 pct of Dubai companies expect to close in 6 months amid coronavirus: SurveyNearly 70 percent of businesses in Dubai expect to close within the next six months due to the coronavirus pandemic, according to a survey by the ... Coronavirus
Coronavirus: Dubai Police launches ‘Stay Safe’ online kids game to raise awarenessDubai Police has launched an online game to raise awareness among children regarding the COVID-19 coronavirus pandemic highlighting important safety ... Coronavirus
Syrian tycoon Rami Makhlouf names son Ali heir to telecom not playboy Dubai-based sonAn unverified document reportedly leaked by Syrian tycoon Rami Makhlouf to social media and Syrian media revealed that his second son Ali, 20, has ... Middle East