With a record AED 14.3 billion in e-commerce sales that covers over 10% of all retail sales in 2020, the UAE leads the Gulf Cooperation Council (GCC) in the e-commerce sector.
The Dubai Chamber of Commerce and Industry (DCCI) forecasts to generate over AED 33.7 billion in sales by 2026 as more traditional stores pivot digital shifts to improve the shopping experience for customers through online platforms.
UAE E-commerce for Secure Profits
As per the report by the Dubai Chamber of Commerce, more than one-third of UAE customers purchase a good or service using a smartphone at least once each week, which is higher than the global average for weekly online sales.
The factors that promote online shopping include comfort, seamless user experience, competitive costs, and customer service.
E-commerce business in the UAE is potentially lucrative, driving a market boom in 2021 and 2022 and contributing to the overall GDP growth in the UAE.
Considering the infrastructure, connectivity, and favourable incentives, the UAE is an incubator for e-commerce businesses to thrive. Although you can consider various business setup options available in the UAE, Dubai CommerCity cater solutions for dynamic e-commerce and online retail sectors.
CommerCity for Your E-commerce Business
CommerCity, the first-ever e-commerce free zone devoted solely to digital commerce in the MENA region, is specifically developed to serve domestic and international digital commerce enterprises.
It is a venture by the Dubai Airport Freezone Authority (DAFZA) with an AED 3.2 billion investment in an area of approximately 2.1 million sq. Ft, located near Dubai International Airport.
It offers a unique ecosystem for an e-commerce business to set up and scale in the middle east. The massive increase in online retail and digital commerce attracts foreign brands and companies to choose the free zone for their regional operations to expand in the Middle East region.
Why Choose CommerCity?
Dubai CommerCity free zone provides solutions for company formation, licencing, and business consulting.
Whether you are a startup or an existing firm, Dubai CommerCity can offer the highest level of customer support to dynamic, seamless operations that concentrate on specific company requirements for e-commerce and online retail that can run throughout the MEASA region.
Types of licences offered at Dubai CommerCity
1. E-Commerce Licence: A licence combined with e-commerce activity allows individuals to trade goods and services through an online platform.
2. Trade Licence: It allows to conduct any trading activity - import, export, distribution, and storage of goods mentioned in the licence.
3. Service Licence: This licence allows individuals to conduct any service-related activities.
4. General Trading Licence: This licence allows you to engage in trading activities.
5. Industrial Licence: This licence allows you to manufacture and package goods.
6. Dual Licence with DET: With a dual licence, a company registered with Dubai CommerCity can apply for a DED licence without any office on the mainland.
Location of Free zones in CommerCity
The Dubai CommerCity has three clusters:
1. Business Cluster comprises modern building structures and high-end premium offices with flexible rental options.
2. Logistics Cluster has dedicated and multi-client warehouse facilities with a pay-as-you-go pricing model with end-to-end warehousing and logistics services.
3. Social Cluster is designed for cafes, restaurants, art galleries and open spaces. It is located in the heart of CommerCity, offering facilities for shows and conferences.
The property rental available to manage your E-business in CommerCity varies between AED 90- AED 130 per sq. ft.
Key Advantages of Dubai CommerCity Free zone
World-Class e-commerce business community
Modern smart infrastructure
Warehousing and logistics facility
Tailor-made online business solutions
Consulting and business support
Centralised customer management
Freezone incentives
How to Setup a Company in Dubai CommerCity Free Zone?
Online entrepreneurs must possess an E-Trader licence in Dubai to advertise or sell goods and services through social media accounts, an online marketplace and websites.
E-trader licence, issued by the Department of Dubai Economy and Tourism (DET), permits solo and home-based entrepreneurs to operate and promote professional and commercial business activities legally.
However, an e-trade licence is for individual business owners and will not allow them to open a physical office or shop. It takes 3 to 5 working days to get an e-trader licence with a renewal option after one year.
Dubai's CommerCity offers pre-negotiated rates for startups looking for an e-commerce platform. It is one of the global e-commerce business hubs assisting international and regional firms in establishing e-commerce operations in the UAE.
How can Ascent Partners help?
Ascent Partners is a boutique consultancy providing bespoke, end-to-end corporate services ranging from company formation to accounting, bookkeeping, and compliance services for entrepreneurs looking to set up their next venture in the UAE. We work alongside to strategise, startup, and scale businesses in the UAE and the broader region.
With a combined experience of 50+ years, our expert consultants provide reliable and unparalleled guidance throughout all strategic phases of a business' evolution.