UAE Focus

Work starts on $871m Dubai CommerCity

November 2018

Dubai Airport Freezone Authority (Dafza) and UAE developer Wasl Asset Management Group said early works have commenced on their ambitious Dh3.2-billion ($871 million) Dubai CommerCity project and the piling and shoring will begin next year.

Launched in 2017, Dubai CommerCity is spread over an area of 2.1 million sq ft in Umm Ramool, an area that witnessed a surge in demand of 120 per cent in those looking to do business there, according to ProperityFinder.

The duo said the investment value of Dubai CommerCity had risen by 18.5 per cent to Dh3.2 billion in total with an increase in the total leasable area by 32.5 per cent.

“Dubai CommerCity is a strategic initiative that will position e-commerce as an economic driver for growth in Dubai. It aims to attract foreign direct investment within this sector, which is witnessing huge growth already in the Middle East, led by developments in Dubai,” said Dr Mohammed Al Zarooni, the director-general of Dafza.

“In the UAE and Saudi Arabia, the market is expected to grow by 16.4 per cent over the next three-and-a-half years. The UAE’s e-commerce sector is expected to reach $10 billion by 2018 compared to 2014 figures of $2.5 billion, this is equivalent to a spectacular 400 per cent growth by the end of this year,” stated the top official.

Dubai CommerCity is aimed primarily at global and regional manufacturers, distributors and global and regional e-retailers, as well as ecosystem companies in the e-commerce industry such as e-payment gateway companies, internet service providers and others.

The e-commerce dedicated free zone is currently selecting a logistics service provider on-site to operate the joint logistics units to provide integrated services, said Dafza.

It is also in the process of testing the registration and rapid licencing of e-commerce companies with high automation and the provision of an intelligent and centralised CRM system which includes connecting the management of common warehouses and others with technology powered by the Internet of Things (IoT), it added.  




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