Dubai CommerCity,
an AED2.7 billion, 2.1-million sq ft joint venture between Dubai
Airport Freezone Authority (DAFZA) and wasl Asset Management Group, has
been launched. This is the first free zone dedicated to e-commerce in
the MENA region, intended to promote Dubai’s position as a leading
platform for international e-commerce and to support economic
diversification and smart transformation strategies.
The
project will accelerate the growth of the e-commerce market which is
expected to reach US$20 billion in 2020 in the GCC countries. It will
provide an environment that stimulates creativity and attracts more
direct foreign investments in line with
Dubai Plan 2021.
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Source: Dubai CommerCity website. Artist's impression of Dubai CommerCity. |
HH Sheikh Ahmed Bin Saeed Al Maktoum,
DAFZA Chairman, said that free zones enjoy flexible and adaptable
legislations and business systems – a unique feature that empowers
economic clusters and accelerates their growth. He added that free zones
also play strategic roles locally and regionally in enhancing global
trade routes and supply chains. DAFZA, he noted, has all the elements
and factors to achieve success, pointing out that for the last two
decades its remarkable achievements have earned the confidence of the
international business community and its leaders.
Dubai
CommerCity is strategically located near the Dubai International
Airport, and close to major local and national highways. It offers
world-class cargo and logistics services and an integrated
infrastructure with easy access to land and seaports, enabling swift and
efficient distribution and delivery of services which are essential to
competing in the world of e-commerce as well as minimising supply chain
costs.
HE Dr Mohammed Al Zarooni, Director General of
DAFZA, said: “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
organisational, 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.”
HE Hesham Abdulla Al Qassim, CEO of wasl
Asset Management Group, commented: “We look forward to partnering with
DAFZA to translate the vision of our wise leadership to make Dubai one
of the best investment destinations in the world. Our joint venture
supports the national economic diversification strategy and the creation
of a sustainable economy based on innovation and competitiveness. The
new free zone is strategically located near to Dubai International
Airport, one of the busiest airports in the world, offering attractive
investment opportunities to reputed e-commerce companies that are
seeking to establish a presence and expand in the MENA and South Asia
regions.”
Dubai CommerCity takes up 427,000 sq m
inclusive of office spaces and logistics units covering 207,000 sq m.
There will be 4,000 parking slots for its customers. The free zone is
divided into three clusters designed in to achieve environmental and
investment sustainability.
The Business Cluster
includes 13 office buildings with a total leasable area of 108,000 sq m
and a total built-up area of 136,000 sq m. It features modern buildings
and landscapes within the interior and exterior areas to encourage
customers to adopt a healthy and active approach while doing business
and to make work routines interesting. The cluster is Leadership in
Energy and Environmental Design (LEED)-certified.
The
Logistics Cluster consists of 84 logistic units with a total built-up
area of 71,000 sq m and a leasable area of 68,000 sq m equipped with the
latest technologies to meet the needs of logistics services providers
and customers. The main feature of the cluster is its rooftop PVC solar
panels for generating clean energy.
The Social Cluster
is the heart of Dubai CommerCity, with its art galleries, a range of
luxury restaurants and cafés, and facilities for e-commerce companies
wishing to establish regional headquarters in Dubai.
The
project will be an ideal opportunity for major regional and
international manufacturers to store their goods, products and spare
parts in state-of-the-art, fully-equipped, technology-enabled
warehouses, to be shipped to the local markets in record time.
The
new free zone will also drive private investment supporting the
region’s startups. Over the next five years, the e-commerce sector is
projected to account for 10% of the emirate of Dubai’s retail sales,
which are in turn expected to reach AED200 billion by the end of 2017.
Dubai
CommerCity is fully committed to supporting the goal of the wise
leadership to reduce the UAE carbon footprint by 25% within 2030 in
accordance with global standards for a sustainable environment and a
green economy. It will reduce electricity consumption by using solar
energy; lower water wastage by 40% through the treatment of polluted
water and the collection and reuse of storm water. Strategies also
include the reduction of pollution and implementation of global
environmental standards related to the construction of light industrial
units and buildings as well as the use of environmentally-friendly
building materials and recycled resources.
The free
zone is committed to modernising and updating the regional e-commerce
legislative system. It will benefit from a memorandum of understanding
(MoU) signed between DAFZA and the Arab Federation for e-Commerce, an
organisation under the Arab League’s Council of Arab Economic Unity,
stipulating cooperation with Arab governments in developing and
harmonising legislation and laws designed to facilitate the practice of
e-commerce and drive the growth of the digital economy.