Driven by the ongoing digital transformation efforts and the UAE leadership’s directives as part of the “projects of the 50” principles, the country has remained at the forefront of the digital revolution. Jafza has constantly complemented the national efforts by providing innovative solutions and contributing to the nation’s economy. The pioneering amenities and services offered by the free zone are benefiting over 1,700 e-commerce customers.
DP World’s flagship free zone Jafza has emerged as a leading world-class hub for e-commerce across the MENA region. Almost 20 percent of Jafza’s 8,700 customers are engaging in e-commerce activities. The industrial, trading and logistics zone offers unprecedented growth opportunities and market access to over 3.5 billion people, across varied sectors in the MEA- SA region.
The name Jafza which has become synonymous with business growth has given extra stimulus to the e-commerce industry in the region which has led to a rise in demand, especially during the pandemic.
Jafza has embraced digital logistics solutions that ensure efficient operations for partners in the free zone. These pioneering solutions helped e-commerce companies to function seamlessly despite the disruptions caused by the pandemic.
Focus on e-commerce
The e-commerce sector that was a small channel across the GCC region five years ago has now become a key contributor to economic growth. In 2020, e-commerce in the UAE witnessed a 53 percent year-on-year increase, re- cording a market value of AED 14.3 billion. During the same period, Jafza itself contributed nearly 50 percent of the trade value, witnessing a total trade of AED 7 billion. It is interesting to point out here that the value of the UAE’s e-commerce market is expected to increase further, reaching over AED 29 billion by 2025.
Some of the factors leading to the enhanced growth of e-commerce are increased disposable income, internet penetration, higher awareness of digital tools, better logistics and transportation, government support and access to digital payments. E-commerce retailers are trusted and combine good service with low prices.
Jafza has embraced digital logistics solutions that ensure efficient operations for partners in the free zone. These pioneering solutions helped e-commerce companies to function seamlessly despite the disruptions caused by the pandemic. One such endeavour is DUBUY.com, DP World’s global wholesale e-commerce platform. Supported by DP World’s physical logistics infrastructure and data-driven logistics solutions, the platform will underpin the growth of e-commerce through reliable fulfilment, secure financial transactions, and efficient movement of goods. Furthermore, the World Logistics Passport, a freight loyalty program for traders and freight forwarders, provides benefits that introduce time and cost savings for e-commerce companies in Jafza. Through this effort, some of its e-commerce advantages include discounts on air freight, last-mile deliveries, and faster transit times for cargoes going from sea to air.
Additionally, Jafza’s flexible e-commerce solutions have helped companies commence operations and scale up their regional activities. Its fulfilment facilities ranging from 300 to 1,000 sqm, with flexible lease terms have helped companies establish and scale their businesses across the MENA region while enjoying unparalleled connectivity and efficiency in logistics. Proximity to parcel delivery consolidation centres and e-commerce marketplaces like Amazon and Noon provides operators greater time flexibility and cost-efficiency. All these factors translate to low costs, time-effective fulfilment services and increased customer satisfaction, enabling wholesale and retail businesses. This further strengthened its position as a leading e-commerce hub, not only in the UAE, but worldwide.
cooperating with leading banks to reinforce the growth of both MNCs and SMEs, helping them establish and expand their business with ease.
New opportunities
Location is of prime importance for the success of any entity and Jafza uses this to its advantage. Businesses in the free zone are connected with the Al Maktoum International Airport (DWC), the Jebel Ali Port, the much-awaited Etihad Railway and key regional highways. This creates an optimal environment for cross-border e-commerce activities. Capitalising on the proximity of the port and airport, DP World in collaboration with Emirates SkyCargo is offering Sea-Air, an express product that can transfer containers from ports to airports in less than 3 hours. 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. The unparalleled infrastructure in the free zone creates a solid foundation for retail and e-commerce companies to set up and operate in.
Our 300 to 1,000 sqm flexible lease terms have helped companies establish and scale their businesses across the MENA region.
Financial incentives for growth
Apart from being an ideal location for robust growth in retail and e-commerce, the free zone’s cooperation with leading banks such as Emirates NBD, Commercial Bank of Dubai (CBD), the Arab Bank for Investment and Foreign Trade (Al Masraf) and RAKBANK further enhances its integrated ecosystem. The purpose is to reinforce the growth of both MNCs and SMEs, helping them establish and expand their business with ease.
Through these partnerships, the free zone has enabled companies to streamline their financial processes, also giving them ac- cess to innovative digital banking services. Companies can avail services including real estate finance, asset-based finance and cash management solutions, business and term loans, point-of-sale financing and working capital financing. Processes like ac- count opening, financial documentation and automation of the remediation process for its partners have also become seamless.
The industrial, trading and logistics zone offers unprecedented growth opportunities and market access to over 3.5 billion people, across varied sectors in the MEASA region.
- the free zone offers unprecedented growth opportunities and market access to over 3.5 billion people
- Jafza contributed nearly 50% of the total trade value in the E-commerce sector in 2020, amounting to AED 7 billion
- Jafza houses over 8,700 customers specialising in industrial trading and logistics operations
- the e-commerce market is expected to exceed AED 29 Billion by 2025