E-commerce free zone to help position UAE as trade hub

Dubai CommerCity will also help attract foreign technology start-ups to the country

E-commerce has been a global disruptive force in retail for almost two decades, and not surprisingly, retailers in the region have resisted its impact on their operations. But the days of resisting e-commerce are quickly approaching an end. Souq.com helped establish e-commerce as an acceptable option for many consumers in the region, and following its acquisition by Amazon.com and the launch of Noon.com, online sales are expected to skyrocket. The use of digital wallets by Apple and Samsung will further accelerate the uptake of consumer spending as households grow more comfortable purchasing online. UAE shoppers spent $12.4 billion (Dh45.54 billion) online in 2016. Sales are expected to reach $20 billion across the GCC by 2020.

Considering the growth of e-commerce, the decision of Dafza and the Wasl Asset Management Group on Saturday to launch a free zone, called Dubai CommerCity, committed to developing ecommerce in the region just makes sense. With the infrastructure in place to facilitate online purchases and a growing consumer base to use it, a free zone will help Dubai maintain its position as a hub of commerce and trade, while further ensuring and attracting the growth of tech-based start-ups.

Many people may lament the rise of e-commerce and its accompanying transition to a digital economy, but resisting this technology only limits the growth of jobs and denies consumers the ability to find products at competitive prices. The transition to a digital economy doesn’t have to be difficult. Government oversight can both ensure consumer protection and safe financial transaction while making sure the region is not left out of this burgeoning industry.