UAE will contribute $4.6bln to regional e-commerce industry
Dubai Commercity, the first of its kind project in the region to cater to e-commerce industry, is scheduled to open by the end of 2020, said a senior official. The Dh3.2 billion project, a joint venture between Dubai Airport Freezone Authority (Dafza) and property developer Wasl, will tap the fast-growing e-commerce market which will grow 13 per cent to $26 billion by 2022. The GCC market will account for $11 billion and UAE will contribute $4.6 billion to regional e-commerce industry.
"The need for world class e-commerce services has never been greater. Having previously identified the region's growing e-commerce market and given the traction witnessed by clients (going) online due to the pandemic, we are on track for the scheduled opening by the end of 2020," Mohammed Al Zarooni, director general of Dafza, told CNN.
The first buildings are expected to be opened and occupied in November, with staged openings until the project is completed in 2023, it said. Like the other free zones operating in the emirate, CommerCity will offer no corporate tax, no income tax, 100 per cent foreign ownership, full repatriation of capital and profit and no currency restrictions.
Spread over, the free zone will house 12 buildings including a business cluster, logistics centre and a social centre. E-commerce in Dubai has been growing substantially, thanks to the initiatives taken by the governments.
Dubai Economy has announced that 943 'DED Trader' licences were issued in the first-quarter of 2020, an increase of 179 per cent over the same period last year as online shopping gained fresh momentum following the outbreak of coronavirus in the UAE and worldwide Dr Hashim Al Nuaimi, director at the UAE's Ministry of Economy's Consumer Protection Department, recently said all companies and individuals dealing in e-commerce have to register with the economic departments in their respective emirates in order to closely monitor the delivery and quality of goods.
"We ask people selling goods through app and e-commerce websites to register with the economic departments. We need trust from consumers that the items that they purchased online are controlled by the government. In case of any issue with the item purchased online, customer can communication with outlet or a government body. All e-commerce trade in the UAE by private sector will be governed by consumer protection department," he added.
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