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To accelerate the rapid development of the UAE’s e-commerce ecosystem, the Jebel Ali Free Zone (Jafza) is the first and largest logistics and trade free zone ecosystem and has become a destination for e-commerce fulfillment and sales in the Middle East and North Africa. Jafza demonstrated its outstanding performance in the region at the 2021 Seamless Middle East Exhibition. As part of an event highlighting opportunities for e-commerce, retail, and fintech solutions, the Free Zone showcased its e-commerce-realized products and discussed how to change regulatory and consumer demands to create new opportunities for existing and new regional companies .
Unique trading environment accelerates e-commerce in the Middle East and North Africa
The location of Jafza provides companies with a single bonded zone connecting Al Maktoum International Airport (DWC) and Jebel Ali Port, creating the best environment for cross-border e-commerce activities. Retail and wholesale traders have seen a surge in demand for online goods, which has led to an increase in the number of companies in the e-commerce sector and shifted business activities to focus on serving customers. Companies operating in Jafza can optimize integration and order fulfillment services in the MENA region while enjoying unparalleled logistics connectivity and efficiency. All these factors translate into low-cost, efficient fulfillment services and higher customer satisfaction.
Jafza developed a digital logistics solution with the support of Dubai Trade to ensure the efficient operation of free zone partners. Despite the disruption caused by the pandemic, these solutions help e-commerce companies operate seamlessly.
Today, Jafza announced the provision of new products for e-commerce fulfillment companies, thereby reaffirming its role in promoting wholesale and retail businesses and consolidating its position as the free zone of choice for e-commerce in the UAE, the Gulf Cooperation Council and the wider region. The area of distribution facilities ranges from 300 to 1,000 square meters, and the lease term is flexible, which can help the company establish and expand its business in the Middle East and North Africa. In addition, proximity to parcel delivery integration centers and e-commerce markets (such as Amazon and Noon) provide operators with greater time flexibility and cost-effectiveness.
DP World-Abdulla Bin Damithan, CEO and Managing Director, UAE Region and JafzaSaid: “As the business landscape continues to change, e-commerce has become an indispensable part of the global retail framework. Driven by the ongoing digital transformation efforts and the UAE’s wise direction as part of the “50 Projects” principle, The country has always been at the forefront of the digital revolution. DP World, the UAE region has always complemented national efforts to promote economic development and provide innovative solutions that contribute to its continued growth. Jafza’s groundbreaking facilities and services have been engaged in more than 1,700 E-commerce partners bring benefits. We will continue to optimize our ecosystem to provide a comprehensive digital experience from receipt to last mile delivery. Our larger goal is to emphasize Dubai’s long-term commitment to promote regional and global business growth .”
The UAE’s e-commerce industry shows great potential, with a market value of AED 14.3 billion in 2020, a year-on-year increase of 53%. During the same period, Jafza itself contributed nearly 50% of the trade volume, with a total trade volume of 7 billion dirhams. Free Zone leased nearly 4 million square meters of space to local and global e-commerce companies, which is seven times the total built-up area inside the Dubai Mall. Jafza provides flexible establishment options to establish operations in free zones with zero interruption.
Jafza also works closely with Dubai Customs to provide its digital e-commerce platform and provide regulatory-compliant paperless cross-border transactions.
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