The Propertyfinder Group announced the information that Umm Ramool in Dubai, the place of Dubai’s new free zone for the e-commerce sector, recorded a 120 % growth in interest from companies going to conduct business here.
The proximity of the area to the airport and the announcement last year of the creation of Dubai CommerCity area of 2 million square meters, contributed to the popularity of the free zone.
Statistics demonstrates that, despite the fact that many warehouses experience a decrease in the cost per square meter over the past half a year, in Umm Ramool this indicator, on the contrary, is growing.
The Dubai CommerCity project is estimated at 2.7 billion dirhams ($ 735 million). The project is aimed at promoting Dubai as a leading platform for international e-commerce and supporting economic diversification.
It is created to accelerate the growth of the e-commerce market, expecting to reach $ 20 billion by 2020 at the regional level and also attracting more foreign direct investment according to the Dubai 2021 plan, with the goal of creating sustainable economy based on innovation.
It is also expected that the new free zone will stimulate investment activity supporting start-ups for the region. According to forecasts, over the next five years, the e-commerce sector will account for 10 percent of Dubai’s retail sales.
Experts predict that the e-commerce market in the Gulf region will grow to $ 20 billion by 2020 from $ 5.3 billion in 2015, when its share in the region’s GDP was only 0.4%. It is expected that by 2020 the total, average annual growth rate of the e-commerce market will be 30%. For comparison: the total, average annual growth rate of the market, traditional retail trade, is 9%. Such high rates in e-commerce are possible, thanks to the awareness of customers about online offers, higher conversion rates, as well as a significant number of sellers on electronic platforms.
The Authority of the Free Economic Zone of the Emirate of Fujairah, UAE, (FFZA) plans to facilitate business for new residents. It was decided to encourage companies based in the Zone to share their skills and experience with local entrepreneurs.
Currently, the FFZA team is looking for variants to combine companies for exchanging ideas and experiences.
One of the forms of such interaction is the creation of a special center in which companies operating in the zone will be able to demonstrate their products and ideas. So local entrepreneurs will have opportunity to decide about cooperation in the development of new products and enterprises.
The free zone of Fujairah, created just 2 decades ago, has more than 2,000 registered companies nowadays. Almost 30 % of them are engaged in manufacturing industries, as well as in services.
The creation a specialized center for demonstrating this knowledge was made to stimulate the growth of entrepreneurship outside the free zone, which will help expand business for the port of Fujairah and Fujairah International Airport.
This exchange of knowledge will play the key role to the diversification of the local economy.
The e-commerce sector in the UAE is developing rapidly, thanks to the population of the country, advanced in the field of innovation, as well as the introduction of high technologies in public life.