Dubai CommerCity, a new AED2.7 billion, 2.1-million sq ft e-commerce free zone, has been jointly launched by Dubai Airport Freezone Authority (DAFZA) and wasl Asset Management Group. As the first of its kind in the MENA region, this project aims to solidify Dubai’s standing as a major e-commerce hub, boost economic diversification, and advance smart transformation strategies.

This initiative seeks to capitalize on the burgeoning GCC e-commerce market, predicted to reach US$20 billion by 2020. It will foster innovation and attract foreign investment, aligning with the goals of Dubai Plan 2021.

Source: Dubai CommerCity website. Artist’s impression of Dubai CommerCity.

HH Sheikh Ahmed Bin Saeed Al Maktoum, DAFZA Chairman, highlighted the role of free zones in fostering economic clusters and accelerating their growth due to their flexible legislation and business environments. He emphasized the significance of free zones in bolstering global trade routes and supply chains, both locally and regionally. He expressed confidence in DAFZA’s ability to achieve success, building upon two decades of accomplishments that have earned the trust of the international business community.

Strategically positioned near Dubai International Airport and major highways, Dubai CommerCity offers top-tier cargo and logistics services. Its integrated infrastructure, with easy access to seaports and land routes, facilitates efficient distribution and delivery, crucial for e-commerce competitiveness and minimizing supply chain expenses.

HE Dr. Mohammed Al Zarooni, Director General of DAFZA, stated that Dubai CommerCity will reinforce e-commerce as a primary driver of Dubai’s sustainable economy. He explained that DAFZA will leverage its experience and insights from extensive research on the MENA region’s e-commerce future. Dr. Al Zarooni views Dubai CommerCity as complementary to DAFZA’s expansion plans and achievements in attracting foreign direct investment, aligning with their vision, “The free zone that goes beyond,” and their successful partnership with wasl Asset Management Group. He believes that Dubai CommerCity will contribute to building a new world-class free zone and a unified platform for government, administrative, customs, and logistics services tailored to the e-commerce sector, supporting the leadership’s vision for sustainable development.

HE Hesham Abdulla Al Qassim, CEO of wasl Asset Management Group, expressed enthusiasm for collaborating with DAFZA to realize Dubai’s leadership vision of becoming a top global investment destination. He believes their joint venture supports the national economic diversification strategy and the development of a sustainable, innovation-driven economy. Al Qassim emphasized the strategic location near Dubai International Airport, offering appealing investment opportunities for established e-commerce companies looking to expand within the MENA and South Asia regions.

Spanning 427,000 sq m, Dubai CommerCity encompasses 207,000 sq m of office and logistics spaces, along with 4,000 parking slots. The free zone is structured into three clusters designed for environmental and investment sustainability.

The Business Cluster features 13 office buildings with a total leasable area of 108,000 sq m and a total built-up area of 136,000 sq m. Incorporating modern design and landscaping, it promotes a healthy and engaging work environment. The cluster is Leadership in Energy and Environmental Design (LEED) certified.

The Logistics Cluster houses 84 logistic units, totaling 71,000 sq m of built-up area and 68,000 sq m of leasable space, equipped with cutting-edge technologies to meet the demands of logistics providers and customers. A key feature is the use of rooftop PVC solar panels for clean energy generation.

The Social Cluster serves as the heart of Dubai CommerCity. It will host art galleries, upscale restaurants, cafes, and facilities for e-commerce companies establishing regional headquarters in Dubai.

The project presents a prime opportunity for major regional and international manufacturers to store goods, products, and spare parts in advanced, fully-equipped warehouses, enabling swift distribution to local markets.

This new free zone will also stimulate private investment, supporting regional startups. The e-commerce sector is projected to represent 10% of Dubai’s retail sales within the next five years, with retail sales expected to reach AED200 billion by the end of 2017.

Dubai CommerCity is fully dedicated to supporting the UAE’s goal of reducing its carbon footprint by 25% by 2030. The project will utilize solar energy to decrease electricity consumption and aims to reduce water wastage by 40% through treated wastewater and rainwater collection. Additional strategies include pollution reduction and adherence to global environmental standards in construction, utilizing eco-friendly materials and recycled resources.

Furthermore, the free zone is dedicated to modernizing the regional e-commerce legislative framework. It will benefit from a memorandum of understanding (MoU) between DAFZA and the Arab Federation for e-Commerce, an organization operating under the Arab League’s Council of Arab Economic Unity. This collaboration focuses on working with Arab governments to develop and harmonize legislation that facilitates e-commerce practices and promotes the growth of the digital economy.