The $740 million joint venture, between Dubai Airport Free Zone Authority (DAFZA) and wasl Asset Management Group, will be the first e-commerce free zone in the region. The 2.1 million square feet zone will be located near Dubai International Airport in the Umm Ramool area.
Over a dozen office buildings and logistics facilities will be supplemented with an area welcoming restaurants, cafes and art galleries. The goal is to attract foreign e-commerce players looking to expand in the Middle East and in South Asia.
Although no timeline has been published, the development is planned in two stages. Mohammed Al Zarooni, Director General of DAFZA said: “Through Dubai CommerCity, we aim to play an organizational, operational and knowledge-based role that will contribute to the building of a new world-class free zone”.
By 2020, e-commerce growth is expected to reach $20 billion in Gulf Cooperation Council countries. In Dubai’s retail sector, e-commerce should make up 10% of the sales in the next 5 years, a sector expected to reach $54 billion by the end of the year. In an effort to boost this regional growth, the free zone project was launched.