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Dubai CommerCity Reports 18.5% Increase In Investment Value
(11 October 2018)
Announcement made as part of CommerCity first participation in GITEX Technology Week 2018


Dubai CommerCity, a joint venture between Dubai Airport Freezone Authority (DAFZA) and the Wasl Asset Management Group, has announced its participation for the first time in  GITEX Technology Week 2018. CommerCity will showcase the development phases of the project and its solutions to global and regional e-commerce companies. The investment value of Dubai CommerCity has increased by 18.5% to AED 3.2 billion in total with an increase in the total leasable area by 32.5%.

Launched in 2017, Dubai CommerCity is an area of ​​2.1 million square feet located in Umm Ramool, an area that witnessed a surge of 120% in those looking to do business there according to ProperityFinder.

It is forecasted that the e-commerce market in the region will be worth $48.6 billion in 2022, up from an estimated $26.9bn in 2018. As such it is expected that Dubai CommerCity will gain strategic importance as it seeks to consolidate Dubai's presence as a major global e-commerce hub. This will support the national economic diversification strategies and smart transformation plans by attracting foreign direct investment to the sector. The GCC is expected to contribute 43% by 2022 from the Middle East and Africa e-commerce retail market, led by the UAE and Saudi Arabia, the region's largest and fastest growing markets.

"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, Director General of DAFZA. “In the United Arab Emirates and Saudi Arabia the market is expected to grow by 16.4% 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 percent growth by the end of this year."

Dr. Al Zarooni linked this growth to the youth demographic in the region, with high penetration rates of internet, smart mobile phones and the use of social media. According to reports issued in 2017 by the TRA, the rate of internet penetration in the UAE accounted for 90% of the population, some of the highest rates in the world. He highlighted that it is not surprising that youth continue to adopt modern shopping patterns, including the use of online platforms.

“We are creating value and benefits through Dubai CommerCity to make it attractive to investors and to enable them to benefit from the strategic location close to Dubai Airport, which gives them the opportunity to reach more than 2.4 billion people within five hours. This will enhance the regional experience of their customers, accelerate deliveries, and increase their operational reach," added Al Zarooni.

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

Dubai CommerCity is divided into three main clusters: business, logistics and social. With the increase in investment value and leasable area for the business cluster increased by 57.6% to 170,000 m2. The logistics cluster, which uses solar panels across its surfaces, has a total rental area of 53,139 m2, 78.9% of which is earmarked for dedicated logistic units, plus 21% for the unique Joint Logistics Unit model with a total area of 11,160 m2.

The rental area in the social complex is 10,000 square meters, which is the dynamic pulse of  CommerCity, where it will feature art halls and a range of restaurants, luxury cafes, and vital facilities that live up to the expectations of e-commerce companies wishing to establish regional headquarters in Dubai and enhance the experience of its employees.

Dubai CommerCity is fully committed to reducing the national carbon footprint by 2030. This will be done by embracing non-traditional designs in accordance with the highest global standards within sustainable environment and green economy. It will also aim to reduce electricity consumption based on the latest solar technology and reduce water wastage by 40% through the treatment of contaminated water and rainwater reuse. The project places the highest priority on pollution reduction, drawing on global environmental best practices in building light industrial units and buildings using environmentally friendly materials and recycled resources.

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