Dubai CommerCity launches offices and logistics units in first phase of development
Free zone is in the Umm Ramool area in Dubai and is a $871mn project spread over 2.1mn sqft
Dubai CommerCity (DCC) has launched 470,000sqft of new facilities as part of the first stage of its planned schedule. The phase includes a built-up area of over 320,000sqft of office spaces in the Business Cluster and includes 145,000sqft of e-commerce logistics units and multi-client warehouses in the Logistics Cluster, which will be managed and operated by Hellmann Worldwide Logistics and DHL.
According to a statement from DCC, its strategic location and the increased demand for facilities and services has enabled it to lease more than 51% of its logistics warehouses to companies launching their operations in different sectors ranging from e-commerce, logistics and information technology to fashion, jewelry and electronics.
“The launch of Dubai CommerCity aims to lead the future of e-commerce business in the region. The project has been thoroughly studied not only to provide foundational solutions, but also to stimulate and support business and prosperity at a time when the sector is going through peak growth. The e-commerce sector is key as its value is expected to reach $148.5bn by 2022 in the Middle East, Africa and South Asia regions,” said Sheikh Ahmed Bin Saeed Al Maktoum, chairman of the Dubai Airport Freezone Authority (Dafza).
According to DCC, it has signed agreements with Hellmann Worldwide and Logistics DHL Express that complement efforts to grow and enhance the portfolio of services it provides. As part of the partnerships, Hellmann Worldwide will manage and operate a shared, multi-client warehouse within the logistics cluster and clients will have access to last mile delivery services through DHL Express.
Hellmann will also provide end-to-end warehousing including services like order management systems and streamlined customs clearance processes. As part of end-to-end logistics services, Hellmann will also offer last mile delivery services, through its last mile partner DHL Express, from the warehouse directly to the consumer, DCC noted.
Dr. Mohammed Al Zarooni, director general of Dafza noted, “The global e-commerce sector is expected to grow 16.6% CAGR between 2019 and 2022. The Middle East, Africa and South Asia region is also expected to grow 18.4%, the Middle East and North Africa region 24.9% and the GCC 32.9% CAGR. DCC’s activities align with the strategies set out by the visionary leadership that have been placed to address the critical issues that have surfaced throughout the past months. The pandemic has redefined the nature of work in various sectors including e-commerce. During this period, the role of e-commerce has expanded and offered several solutions. It has also allowed the UAE to offer unprecedented opportunities to businesses across the region and globally.”
Dubai CommerCity’s customers will also utilise unique storage options and a pay-as-you-go payment model, which are highly cost efficient and allow flexibility to scale their operations in line with demand. The strategic partnerships will allow for fast e-commerce fulfilment across the region and will provide a suitable and stable groundwork from where customers can grow businesses and enter new markets, the statement said.
The free zone said it has also signed partnership agreements with Magento Commerce, Redbox Digital and Magento. Focused on offering ‘E-Commerce-as-a-Service’, the collaboration will provide DCC customers with tailored access to e-commerce solutions and services that will enhance digital experiences and brand growth, the statement concluded.
