In yet another move to bolster industrial development, Dubai, on 28th October 2017, announced the launch of a new free zone dedicated to the burgeoning e-commerce industry. It’ll be called Dubai CommerCity, and shall be located in the Umm Ramool area near Dubai airport. It is a joint venture between Wasl Asset Management (WAM)Group and the Dubai Airport Free Zone Authority (DAFZA). This free zone is being created for local and international manufacturers to hoard their goods in cutting-edge, well-equipped, technology-driven warehouses, to be transferred later to local markets quickly through e-commerce.
As is known, free zones in the UAE offer a company the following advantages:
- No taxes on personal income or capital gains
- No corporate taxes
- No duties on import or export of goods
- Provision of 100% foreign ownership
- 100% repatriation of capital and profits
Dubai CommerCity is strategically located, providing convenient access for e-commerce stakeholders in the Middle East and North Africa(MENA) and South Asia regions. It features advanced cargo and logistics services and a well-knit and sophisticated infrastructure with easy access to land and seaports, enabling quick and efficacious distribution and delivery of goods and services that are required to compete in the world of e-commerce and minimize supply chain costs.
Given that the e-commerce market is envisaged to reach $20 billion (AED 73.4 billion) by 2020 in the GCC countries, the development of Dubai CommerCity shall go a long way in the country’s sustainable growth and progress – steering it further towards becoming less oil-dependent.
Dubai CommerCity is an AED 2.7 billion project spanning about 50 acres. It would be divided into 3 clusters–for business, logistics, and social development, respectively, and constructed in 2 phases. It is intended to be an all-encompassing state-of-the-art microcosm that supports the e-commerce sector and meets the current and future needs of logistics, electronic payments, IT solutions, customer services, and other pertinent businesses.
As per Dr.Mohammad Al Zarouni, Director General of DAFZA, “Dubai CommerCity will enhance the role of e-commerce as a key driver of Dubai’s sustainable economy. DAFZA will apply its leading experiences and services based on comprehensive studies on the future of e-commerce in the MENA region. Dubai CommerCity complements the expansion plans and achievements led by DAFZA aimed at attracting foreign direct investments to Dubai, driven by its vision, ‘The free zone that goes beyond,’ in cooperation with Wasl Asset Management Group with which we have a successful partnership. Through Dubai CommerCity, we aim to play an organizational, operational and knowledge-based role that will contribute to the building of a new world-class free zone and the creation of a unified platform for government, administrative, customs and logistics services that meet the needs of the e-commerce sector, in response to the vision of the wise leadership of achieving sustainable development.”
In a statement by WAM, “Dubai CommerCity has a clear-cut plan to attract more foreign direct investments (FDI) through an integrated portfolio of products and services according to the highest international standards. It is intended to be a coherent environment that embraces, nurtures and develops the potentials of youths and promotes entrepreneurship through a modern ecosystem that facilitates the conversion of creative ideas into reality. The project will help foreign investors establish a presence and expand in this field and allow young innovators and entrepreneurs to pursue promising opportunities within the e-commerce sector, which serves as an ideal platform for establishing start-ups and sophisticated projects in line with efforts to make Dubai the smartest city in the world.”
Dubai is a hotspot of industrial and commercial development. It is riding on the wave of the future to grow as a favorable foreign direct investment (FDI) destination hand in hand with sustainable progress. Should you decide to open a business in Dubai, do contact us, even if it’s just for a friendly advice. We at Commitbiz have our team of experts to help you with company formation, registration, and counseling.