Jafza's e-commerce environment to attract fulfilment and marketplace operators
Accelerating the UAE’s rapidly advancing e-commerce ecosystem, Jebel Ali Free Zone (Jafza), the first and largest free zone ecosystem for logistics and trade, has emerged as a destination for e-commerce fulfilment and sales in the Mena region, experts have said.
Jafza’s location, which provides businesses with a single customs-bonded area, connecting Al Maktoum International Airport (DWC) and Jebel Ali Port, creates an optimal environment for cross-border e-commerce activities. Retail and wholesale traders have seen a boom in online demand for goods which has led to an increase in the number of businesses in the e-commerce space and a transformation of business activities to focus on serving the customers.
Companies operating in Jafza can optimise consolidation and order fulfilment services for the Mena region while enjoying unparalleled connectivity and efficiency in logistics. All these factors translate to low-cost, time-effective fulfilment services and increased customer satisfaction.
Jafza, with the support of Dubai Trade, has developed digital logistics solutions that ensure efficient operations for partners in the free zone. These solutions helped e-commerce companies to function seamlessly despite the disruptions caused by the pandemic. Jafza has also announced new offerings for e-commerce fulfilment companies, thus reaffirming its role in enabling wholesale and retail businesses and strengthening its position as the preferred free zone for e-commerce in the UAE, the GCC and the broader region.
Fulfilment facilities range from 300sqm to 1,000 sqm, with flexible lease terms, helping companies establish and scale their businesses across the Mena region. Additionally, proximity to parcel delivery consolidation centres and e-commerce marketplaces like Amazon and Noon provides operators greater time flexibility and cost-efficiency.
Abdulla Bin Damithan, CEO and managing director, DP World - UAE Region and Jafza said: “With the ever-changing business landscape, e-commerce has become an indispensable part of the global retail framework. Driven by ongoing digital transformation efforts and the UAE’s wise direction as part of the “Projects of the 50” principles, the country has remained at the forefront of the digital revolution."
He added: "DP World, UAE Region has consistently complemented the national efforts, boosting the economy and delivering innovative solutions that help its continued growth. The pioneering facilities and services in Jafza already provide benefits to over 1,700 partners engaged in e-commerce. We will continue to optimise our ecosystem to offer an integrated digital experience from receiving to last-mile delivery. Our greater goal being underscoring Dubai’s long-term commitment of facilitating the growth of regional and global commerce.”
The e-commerce sector in the UAE has displayed immense potential, recording a market value of Dh14.3 billion in 2020 and a 53 per cent year-on-year increase. During the same period, Jafza itself contributed nearly 50 per cent of the trade value, witnessing a total trade of Dh7 billion. The free zone leased almost four million sqm of space to local and global e-commerce companies, which is seven times the size of the total internal floor area of The Dubai Mall. Jafza provides flexible establishment options to set up operations into the free zone with zero disruption.
Jafza has also been closely collaborating with Dubai Customs to deliver its digital e-commerce platform that provides paperless cross-border transactions in compliance with regulations.
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