Dubai e-commerce strategy is launched

Plan seeks to draw FDI to raise emirate’s profile as global logistics platform

Shaikh Hamdan Bin Mohammad Bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of Dubai Executive Council, launched the emirate’s e-commerce strategy that aims to strengthen Dubai’s status as a global logistics platform and accelerate online commerce growth.

The strategy primarily aims to increase the contribution of ecommerce to Dh12 billion in the local economy by 2023, and increase regional and global share of e-commerce companies operating in Dubai to Dh24 billion by 2020. Such goals will be achieved by reducing the total cost of e-commerce operations by 20 per cent — including the costs of returned goods, storage, customs duties and VAT on transportation.

The key goal is to drive growth and support economic diversification policies, by motivating e-commerce companies to establish e-logistics distribution centres in Dubai and encouraging cloud computing service providers and leading companies to set up data centres in Dubai.

Creating a stimulating environment conducive to talent and providing a leading model for accelerating the growth of e-commerce are also among the goals set to be met.

The plan seeks to develop an integrated system to draw foreign direct investment into the e-commerce sector, to ensure the sector’s contribution to increasing FDI flows to Dubai, which has recorded strong growth in the first half of 2019, with attracting FDI projects worth Dh46.6 billion, a growth of 135 per cent compared to the same period last year.

The online commerce strategy was launched during the council’s meeting held in the presence of Shaikh Maktoum Bin Mohammad Bin Rashid Al Maktoum, Deputy Ruler of Dubai and First Deputy Chairman of the Executive Council.

Dh12b expected share of e-commerce in local economy by 2023

20% planned reduction in e-commerce costs to achieve target