DMCC to boost Mena region’s $32 billion e-commerce sector

DMCC - the world’s flagship free zone and Government of Dubai Authority on commodities trade and enterprise - has launched the DMCC E-Commerce Ecosystem to accelerate the growth of the e-commerce sector across the Mena region, which is currently valued at $32 billion and is expected to reach $50 billion by 2025.

DMCC is currently home to over 290 companies in the e-commerce space, including Deliveroo, Instashop, Cafu, Class Pass and JUSTLIFE.

The DMCC E-Commerce Ecosystem aims to capitalise on burgeoning demand in the sector. It will allow small and medium e-commerce companies to operate from a convenient location with easy access to workspaces, order fulfilment services and delivery options.

With its leading trade infrastructure and focus on increasing the ease of doing business, DMCC is well-placed to facilitate the sector’s growth.

The new ecosystem is being launched in partnership with the Middle East’s largest self-storage provider, The Box. Alongside providing members access to a wide range of storage solutions, from lockers to warehouses, The Box and DMCC will offer an accelerator programme to support e-commerce entrepreneurs and SMEs.

The Box DMCC Accelerator Programme will provide subsidised rates for storage and DMCC licensing, as well as one-on-one mentorship sessions, tailored workshops and access to exclusive networking opportunities with DMCC’s community of over 22,000 businesses.

Ahmed bin Sulayem, Executive Chairman and Chief Executive Officer of DMCC, said, “Rapid digitalisation across the UAE and the wider region is driving growth in the e-commerce sector at an unprecedented rate.”

“This growth is compounded by trends such as social media influencers selling products through their channels and established brands increasingly turning to online sales.”

“As such, there is a timely and apparent need for a comprehensive platform that provides everything e-commerce businesses need to succeed. This is precisely what the DMCC E-Commerce Ecosystem aims to deliver, so we are proud to bring this to the market with our partner, The Box.”

Separate from the accelerator programme, companies interested in joining the DMCC E-Commerce Ecosystem can choose from three packages: Basic, Starter and Premium+. Through these packages, e-commerce businesses will receive up to a 50% discount on a DMCC business license, a co-working desk or private office space and storage solutions through The Box.

Wadih Haddad, Founder and Chief Executive Officer of The Box, stated, “Storage, fulfilment and last mile delivery are critical to the success of any e-commerce business. We are delighted to partner with DMCC to support the ever-growing needs of the e-commerce ecosystem by providing access to our state-of-the-art infrastructure enabling e-commerce entrepreneurs and SMEs to fulfil their brand promise.”

DMCC’s e-commerce business licences cover a wide range of activities within the sector, including trading, payment services, delivery services and related consulting services.

Meanwhile DMCC — the world’s flagship free zone and Government of Dubai Authority on commodities trade and enterprise — has announced that it achieved its best-ever year for new member company registrations, attracting 3,049 new businesses to Dubai in 2022.

An increase of 23 per cent year-on-year, breaks the previous record set in 2021 when DMCC registered 2,485 new members.

The record growth was driven by prominent international demand, DMCC’s continued work within key commodities sectors, and the growing demand from blockchain and web3 businesses for space at the DMCC Crypto Centre, to the extent that the Crypto Centre is now home to over 500 companies.

Each of these areas was underpinned by DMCC’s commitment to increasing the ease of setting up and doing business in Dubai.

Ahmed Bin Sulayem, Executive Chairman and Chief Executive Officer, DMCC, said, “Backed by a strong regional macroeconomic landscape, DMCC has been efficiently accelerating its growth strategy throughout 2022, focusing on supporting its member companies in high-impact sectors such as web3 and blockchain technologies, commodities and global trade.”

He added, “I often view our member company registrations as a barometer for commercial and FDI activity in Dubai - these record-high numbers demonstrate burgeoning investor confidence in the emirate and the growing number of opportunities that Dubai presents.”

Feryal Ahmadi, Chief Operating Officer of DMCC, commented, “Increasing our annual company registrations by 23 per cent sets a new baseline for DMCC.”

“With a number of exciting new projects in the pipeline and the unwavering dedication of the entire DMCC team, I am confident that we can carry this momentum forward into 2023.