Dubai CommerCity Launches First Phase of New Facilities

Dubai CommerCity Launches First Phase of New Facilities

e-Commerce logistics units to be managed by Hellmann Worldwide and DHL

Dubai CommerCity (DCC), the first dedicated e-commerce free zone in the Middle East, North Africa and South Asia (MENASA) regions, has announced the launch of 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 a AED 3.2-billion, 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 e-commerce logistics units and multi-client warehouses in the Logistics Cluster, which will be managed 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, jewelry and electronics.

H.H. Sheikh Ahmed Bin Saeed Al Maktoum, Chairman of the Dubai Airport Freezone Authority (DAFZA), emphasized how the e-commerce industry has proven to be a key enabler of growth for companies as a result of the increased demand overall.

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His Highness said: “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 US dollars by 2022 in the Middle East, Africa and South Asia regions.

“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.”

His Excellency Dr. Mohammed Al Zarooni, Director General of DAFZA said: "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.

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"It has also allowed the UAE to offer unprecedented opportunities to businesses across the region and globally.”

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.

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 also 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.

The free zone provides advanced opportunities for global and regional manufacturers, as well as distributors and global e-retailers while offering a vast array of tax and investment incentives.

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Transport and Logistics ME