Dubai has a reputation around the world as being a business-friendly city with excellent incentives for entrepreneurs. This is especially true for e-commerce businesses. Now, more than ever before, people are increasing their spending habits online. Dubai is prepared for that trend to stick around with the introduction of Dubai CommerCity.

This area is the region’s first Free Zone dedicated to the success of the e-commerce industry. The project is expected to be completed in 2023, with staged openings happening until then. If you’re ready to take part in the growing e-commerce sector, the time to get involved in this new city is now!

What is Dubai CommerCity?

If you have an e-commerce business in Dubai, it doesn’t get any better than Dubai’s CommerCity. This new city has implemented state-of-the-art technologies to provide investors with a business ecosystem that is dedicated to growing the e-commerce market in the Middle East and in the North Africa (MENA) region.

The city is made possible through a joint venture between two state-owned enterprises: the Dubai Airport Free Zone Authority (DAFZA) and the property firm Wasl. It’s 2.1 million square feet, which is about the size of New York’s world-famous Grand Central Station. So, there’s plenty of room for big opportunities.

Not only is this new city designed with facilities to meet the expectations of e-commerce business setup in Dubai, but it is also in a strategic location. The area is located next to the Dubai International Airport to provide fast e-commerce fulfillment across the region. This helps these businesses deliver an excellent online shopping experience with short delivery lead times.

Growth Opportunities for Entrepreneurs in Dubai CommerCity

The Dubai CommerCity has state-of-the-art facilities and world-class technologies designed to boost success for ecommerce businesses in Dubai. But that’s not all the area has to offer! Dubai CommerCity has so many competitive advantages that make it a great Free Zone for foreign investors.

Digital increasing bar graph with businessman hand overlay
  • Direct access to regional markets
  • Strategically located near Dubai International Airport and national highways
  • World-class cargo and logistics services
  • State of the art infrastructure with easy access to land and seaports
  • No currency restrictions
  • No corporate or income tax
  • 100% foreign company ownership
  • 100% repatriation of capital and profits

Clusters Designed for Success in Dubai CommerCity

This e-commerce Free Zone is designed to provide a dedicated area for online retailers to flourish. To do this, the city has designed modern facilities in three clusters: business, logistics, and social.

  1. Business Cluster: This area consists of 12 modern buildings that promote constant engagement.
  • Logistic Cluster:  This area is made up of 105 warehouse units of different sizes that are equipped with the latest technologies.
  • Social Cluster: This section is in the heart of the city. It features restaurants, art galleries, and exhibition halls.

Start to Finish Company Solutions for ecommerce Businesses

An added bonus that entrepreneurs get from doing business in the Dubai CommerCity is that you get end-to-end business setup solutions. The Free Zone helps with company formation and business setup along with other unique services to help businesses in the city succeed.

Here are some services the Free Zone offers:

  • e-commerce strategy development
  • guidance on e-commerce regulations
  • tech development
  • performance marketing
  • content services
  • and more!

How to Setup ecommerce Business in Dubai CommerCity

Now that you know how great the business opportunities in the Dubai CommerCity are, you need to get started on setting up your business.

Here are the steps to take to get your ecommerce business in Dubai formed:

1. Choose your Business Activity

There are three main business activities in Dubai CommerCity:

  • Portal

This is a company that acts as a link between the buyer and the seller. Simply put, your website would be a platform for merchants who advertise their goods. Amazon is a good example of a Portal or E-marketplace.

  • E-commerce

This is a company that sells their own goods through their own website.

  • Commercial or service

These are services that are sold online like educational training, consultations, food, or clothing.

2. Choose your Business License Type

There are six types of licenses available in the Dubai CommerCity:

  • Trade License

This license allows importing, exporting, re-exporting, distribution, and storage of products.

  • Service License

This license is aimed towards specialized services. This includes carpentry, maintenance, and many more.

  • Industrial License

This license includes light manufacturing activities like packing and assembly.

  • Ecommerce License

An ecommerce license in Dubai allows holders to trade goods and services online.

  • General Trading License

This license allows the trading of general activities like importing, exporting, re-exporting, storage, and distribution.

  • Dual License with DED

DAFZA-registered companies can apply for this license without the need for physical office space on the Mainland. This business will be able to operate out of the Dubai CommerCity.

3. Choose Your Company Type

There are two different forms of companies that can be formed in the Dubai CommerCity:

  • Free Zone Company
  • Branch Office

4. Choose a Location for Your Business

There are three location options for your business setup in Dubai CommerCity:

  • Office space
  • Warehouse space
  • Cold storage

How Can I Get My Etrade License in Dubai CommerCity?

It is a pretty straightforward process to get your ecommerce license in Dubai. It will take about 1 to 7 days to get your license issued, and then you’re ready to start doing business.

Here are the steps you have to go through to get your license issued:

  • Decide on the legal structure of your business. There are two options:
    • Limited Liability (LLC)
    • Branch Office
  • Apply for your license through the Dubai Airport Free Zone or the Dubai CommerCity
  • Decide on your trade name
  • Turn in your license application and pay the required fees
  • Get an initial approval certificate
  • Draft a Memorandum of Association
  • Draft a local service agent agreement
  • Find an office space
  • Take the final approval
  • Complete the import/export requirements
  • Create a bank account

Let MSZ Consultancy Help Build Your Dream Business in Dubai CommerCity

There’s no doubt about it – the Dubai CommerCity is the premier spot for online retailers. Are you ready to take advantage of this new city that is aimed at helping ecommerce businesses succeed? Let MSZ Consultancy help you get started! We are expert business setup consultants in Dubai with extensive knowledge of company setup in the Free Zones. We can help guide you through the steps you need to take to successfully form your company without any hassles. Don’t wait! Give us a call today at +971 52 544 1248 to get started on your business journey with a FREE consultation.

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