Initiative developed that will enable greater foreign direct investment (FDI) in the e-commerce sector, blockchain to take key role
A new e-commerce initiative to stimulate foreign investment into Dubai has been announced by the Dubai Free Zones Council (DFZC).
The plan was first presented to His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, during his meeting with a number of Dubai Officials on stimulating the national economy and promoting investment through a range of legislative frameworks.
These are expected to increase Dubai's competitiveness and enhance its global economic status as an ideal destination for investments and growth.
Following the directives of His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council, the Executive Council will follow up on the implementation of economic growth-stimulating initiatives.
DFZC's initiative will primarily focus on establishing e-commerce conditions and controls by cooperating with Dubai Government authorities.
This will come in the form of joint teams and workshops that will support the adaptation to procedures and generate proposals that will make Dubai one of the most attractive cities in the world for free zone companies related to e-commerce.
The initiative will also examine mechanisms for adopting blockchain technology in order to enhance transparency and speed up the completion and automation of procedures.
It will also create a stimulating and attractive environment for major global e-commerce companies as well as work hand-in-hand with DFZC members.
A statement from the DFZC read: “The council believes that the initiative will have significant economic implications, such as reviving and expanding air cargo traffic in Dubai and addressing the rise in demand and supply of logistics services.
“Major logistics companies will have to compete against time and speed of delivering to consumers, aside cost and efficiency challenges demonstrated in managing the warehouses and logistics operations of local and global e-commerce companies.
“The UAE's national economy will also witness high competition in e-payments, the IT sector and the emergence of small and medium enterprises (SMEs) to provide different services within the e-commerce ecosystem, which will enhance their regional presence in Dubai.”
H.E. Dr Mohammed Al Zarooni, Secretary-General of DFZC, said: “His Highness Sheikh Mohammed bin Rashid Al Maktoum has placed great confidence in us to implement a quality initiative that will stimulate the national economy through e-commerce.
“This highlights the vital role played by free zones over the past decades in attracting and sustaining FDI.
“The latest concept of e-commerce has established itself as the future of trade.
“Our wise leadership has always seen Dubai as a city that foresees the future and has a clear goal of establishing itself as an ideal destination for investments.
“At DFZC, we are all confident of our ability to formulate a strong project for the growth of our national economy through e-commerce.”
The DFZC anticipates a promising future in e-commerce, which will transform Dubai to a regional hub across the Middle East, the growth of e-commerce investments is expected to reach US$69 billion by 2020 in the Middle East, of which the GCC represents about 34% of it.
In the next meeting, the council will discuss the initiative's implementation plan and develop a time frame to apply series of programs to further accelerate the implementation of e-commerce conditions and controls.