At a time when e-commerce is revving up the market with unmatched profitability prospects, foreign investors are turning to Dubai to leverage the sector’s promises. The prospect of business setup in Dubai is conducive for e-commerce businesses due to the presence of a tech-savvy population, high-internet penetration and the presence of sector-specific free zones. Dubai CommerCity is an industry-specific free zone, offering specialised e-commerce solutions for investors.
DubaiCommercity started commercial operations in 2021 adding new facilities. Regulated by Dubai Airport Free Zone Authority (DAFZA), Dubai CommerCity is the first and largest e-commerce free zone in the Middle East region. Business setup consultants in Dubai will guide you on how to start a business in Dubai CommerCity free zone. Meanwhile, let’s explore what e-commerce investors can expect as the free zone has commenced commercial operations.
An Ideal Destination for E-commerce Businesses
Dubai CommerCity is largely seen as an ideal ecosystem built for businesses looking for setting up or expand their e-commerce business. The free zone is also a perfect hub for e-commerce ecosystem service providers to offer their services to both regional and international e-commerce entities. The free zone offers individually tailored e-commerce enablement services for both start-ups and established companies.
E-commerce Infrastructure
Dubai CommerCity is divided into three clusters, each with its own innovative design. The Business Cluster is home to modern landscaped buildings with Grade A premium offices; the Logistics Cluster which consists of state-of-the-art dedicated and multi-client warehouse units with scalable pay-as-you-go pricing models; and the Social Cluster houses restaurants, cafes, exhibition halls and events. Dubai CommerCity includes last-mile delivery services and scalable fulfilment centres, which offer various dedicated solutions for e-commerce businesses.
Tailor-Made E-Commerce Solutions
Apart from providing complete support to enable a hassle-free business setup in Dubai, the free zone provides special services for e-Commerce businesses. It includes e-commerce strategy consulting, guidance on e-commerce regulations in the region, end-to-end logistics solutions including last-mile delivery, complete e-commerce platform solutions, digital marketing services, and other support services, including but not limited to, photo studios, and call centres, among others.
Perfect Environment for E-Commerce Business
The free zone is built around an area covering 2.1 million square feet and boasts of an investment of around USD 1 billion. Dubai CommerCity is strategically situated at the centre of the regional trade route that provides easy access to more than 2 billion people within a 2-hour flight radius. The free zone is close to Dubai International Airport, which enables fast e-commerce fulfilment across the region. If the location of Dubai CommerCity seems to be appealing to you, consult with the best business setup consultants in Dubai to proceed further.
The free zone recently released a report that states that the e-commerce market in the Middle East, Africa and South Asia (MEASA) will touch USD 148 billion by 2022. It says e-commerce has seen major growth during the Covid-19 pandemic with the Gulf region recording a 214% year-on-year increase in cross-border online sales by mid-year 2020.
The report has identified the GCC as the fastest-growing sub-regional e-commerce market over the forecasted period. Saudi Arabia and the UAE lead the way with 39% and 38% CAGR respectively. Being the only e-Commerce free zone in the region, foreign investors must choose Dubai CommerCity for company formation in Dubai. Now let’s move on to some points that will justify this recommendation.
Dubai CommerCity is a VAT Designated Zone
Dubai Commerce City has been classified as a Designated Zone effective from 1st January 2021. The designated zone is a specified fenced geographical area having security measures and customs controls in place to monitor the entry and exit of individuals and the movement of goods to and from the area.
Start a Business in Dubai CommerCity with JBC’s Expert Assistance
Initiating a business setup in Dubai CommerCity free zone enables the investors to benefit from the forecasted growth in the e-Commerce sector. Even though the 40 plus free zones in the UAE provide an e-Commerce license, setting up a business in an industry-specific free zone is more advantageous. In Dubai CommerCity, the investors get access to specialised e-Commerce consultations and support services, which the general-purpose free zones can’t provide.
Investors planning to set up an e-commerce company in the free zone can consult with the best business setup consultants in Dubai such as Jitendra Business a Consultants (JBC). JBC’s business setup consultants are highly qualified and provide robust solutions for enabling a smooth company formation in Dubai. Consult with JBC soon to reap success in the highly profitable e-Commerce sector in Dubai.
