Investments in Dubai CommerCity, a joint venture between Dubai Airport Freezone Authority (DAFZA) and the Wasl Asset Management Group have increased by 18.5 percent to AED3.2 billion ($870 million), it has been announced.
The e-commerce project, launched in 2017 on a 2.1 million square feet plot located in Umm Ramool, has also seen an increase in the total leasable area by 32.5 percent, a statement said.
The growth comes as it is forecasted that the e-commerce market in the region will be worth $48.6 billion in 2022, up from an estimated $26.9 billion in 2018.
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 percent 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."
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.
“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.
It is divided into three main clusters - business, logistics and social.
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