Dubai CommerCity was established around two years ago. This is when the whole free zone was established, and it’s an investment between Wassel, which is the property arm here in Dubai, as well as the Dubai Airport Free Zone Association. So they joined forces and built this free zone, which is right next to Terminal 3 at the Dubai airport.
Infrastructure and Facilities
The office cluster at Dubai Commercity consists of 12 different buildings and has space for 22,000 tenants. Next to it, you have the social cluster. This is where you will find retail stores, restaurants, and a multi-purpose hall. This space is available for all tenants to have lunch, dinner, or breakfast, as well as shopping possibilities.
Just next to it, separated by a fence, is the free zone, which is the logistics cluster. It’s a fenced free zone with six warehouses, covering around 55,000 square meters. Because it’s a free zone, you have the opportunity to bring in products from overseas without paying any import GST and then export them again without paying taxes. This is a classic advantage of free zones. Altogether, we are talking about 200,000 square meters of facilities.
Dubai’s Vision for E-commerce Growth
Back in 2015 when DAFZA (Dubai Airport Free Zone Authority) was studying sectors for their new upcoming free zone, E-commerce was one of the leading choices given the forecasted growth of the online retail market in the region, which was expected to reach $26 billion by 2022.
It was then that we initiated the building of a city for online shopping, in line with Dubai’s overall vision to become a hub for e-commerce. From then to now, the numbers have dramatically changed. Especially post-pandemic, the shift in consumer behavior and increased e-commerce demand have driven online retail sales in the entire MENA region to now be expected to reach around $50 billion by 2022. That’s nearly double the revenue that was forecasted back in 2015 and significantly higher than the $26.9 billion in 2018.
Key Considerations for E-commerce Success
Consumers are rapidly moving their spending online, whether by desire or necessity. Brands are increasingly shifting to a direct-to-consumer business model and are experiencing huge growth in demand and sales. Now, there are several factors to consider when developing a regional e-commerce presence.
If you’re just starting to build a regional presence, it’s always best to work with providers who understand the market-specific challenges, can navigate legal and technical aspects, and provide extensive commercial and logistics infrastructure.
For example, COD (cash on delivery) is an important payment method in this region. Similarly, when it comes to digital payments, Mada is the dominant card-based payment system in Saudi Arabia. The ability to offer what customers consider a safe and acceptable payment method in specific geographies is important to ensure reduced cart abandonment.
Yet another challenge is dealing with product returns and refunds. For instance, it’s not unheard of to experience up to 30% of e-commerce orders going through an exchange or return process, especially in fashion. If the experience is not smooth for the customer, they may never return to your web store.
Other important factors to consider include streamlining localization efforts, understanding the importance of social commerce in the given market, catering to cultural sensitivities, and ensuring a seamless omnichannel customer experience. Looking at all these aspects in a holistic way will drive cost savings for your business and enhance customer satisfaction.
Dubai CommerCity’s Role in E-commerce Growth
At Dubai CommerCity, we have developed an approach—working with our partners and government entities here in the UAE—to help businesses overcome these challenges and establish their e-commerce footprint in the region.
Dubai CommerCity is built to support brands launching in the UAE and across the GCC region. I like to refer to Dubai CommerCity as “Ecom in a Box.” We not only provide space for an office, warehouse, or fulfillment center to set up your business but also offer all the relevant support you need to take your business online.
It strengthens Dubai’s position as a leader in e-commerce by offering an all-encompassing and unique e-commerce ecosystem for businesses to run effectively and seamlessly.
Comprehensive Support for Businesses
Beyond complete business setup and customer support, Dubai CommerCity also offers:
- E-commerce strategy consulting
- Guidance on e-commerce regulations in the region
- End-to-end logistics solutions, including warehousing, fulfillment centers, and last-mile delivery
- Complete e-commerce platform solutions
- Digital marketing services
- Additional support services, such as photo studios, content translation, and call centers
With DCC, you can simply cut out the middleman. Brands no longer need a local partner or franchisee to represent them in the market, which is crucial for those wanting to focus on a direct-to-consumer strategy.
A One-Stop Solution for E-commerce Entrepreneurs
If you come to Dubai CommerCity, you will enjoy a one-stop shop. That means you’re not just becoming a tenant, but you can also get a license, a work permit, and even a website. We build websites, assist with fulfillment operations, and help with last-mile logistics. Dubai CommerCity has a very international team with people from all over the world because, for this free zone, it is very important to be able to cater to any customer request.
The Future of E-commerce in the Region
Dubai CommerCity is a place where digital innovation meets limitless possibilities. It’s no secret that a new wave is upon us. E-commerce is all set to transform business in the region, and Dubai CommerCity is just as excited as you are about what the future holds.
Here, you’ll find a supportive and holistic environment to quickly set up and run your e-commerce business. You’ll find like-minded business leaders to connect with, the right talent to hire, and the right inspiration to take your business to the next level. You’ll also find that Dubai CommerCity is always abuzz with activity. The energy is infectious and helps propel us all into the future. That’s what this is all about, after all, the future.
