The MENASA (Middle East, North Africa and South Asia) region’s e-commerce sector is growing at 24.6% compound annual rate through to 2020, indicated a recent report commissioned by Dubai Airport Free Zone (DAFZA) and Dubai CommerCity, the region’s first dedicated e-commerce free zone.
“The e-commerce market is set to quadruple in volume over the next five years and the Middle East market has been identified by studies as being one of the region’s most ready for disruption and digital transformation,” says Amna Lootah, assistant director general – Finance, Commercial & Customer relations Division Foster of DAFZA Innovation & Future Unit. “We see tremendous opportunities for further growth in the e-commerce sector, which is being led by new technology and innovation. Improvements to infrastructure, services and logistics in the region are also having a positive impact and these are all areas that we are investing in as Dubai CommerCity.”
Dubai CommerCity will provide advanced opportunities for global and regional manufacturers, as well as distributors and global e-retailers. It will facilitate a business ecosystem for companies in the e-commerce industry such as e-payment gateway businesses, internet service providers and others. Divided into three main clusters – business, logistics and social – Dubai CommerCity will be a home for innovation, new technology, state-of-the-art services and modern infrastructure.
Commenting on the project, Lootah adds, “With the e-commerce sector in the UAE expected to reach $26 billion by 2022, Dubai CommerCity will be a dedicated free zone for major international and regional manufacturers, as well as companies operating within the e-commerce sector, to set up their businesses in the GCC, MENA and East Asia regions. It will offer an encouraging and stimulating environment for future growth and investment opportunities.”