Dubai CommerCity: An E-Commerce Freezone For Businesses

Dubai CommerCity An e-commerce freezone for businesses

Dubai has been on the world’s business map for several years now and has consistently been attracting investments from businesses across the world. One of the key factors contributing to this surge is the setup of free zones across the emirate. These free trade zones eliminate businesses from paying VAT or other taxes, thereby making it profitable for them to set up shop here. One such free trade zone is Dubai CommerCity, which the Dubai Airport Freezone Authority launched in April 2021. This guide gives you everything you need to know about this now bustling e-commerce zone. 

Dubai CommerCity- A Brief

Dubai CommerCity- A Brief 

Dubai CommerCity is the first free trade zone in the MEASA region of Dubai and has been dedicated to the growing needs of the e-commerce market. The sprawling 2.1 million square foot zone is dedicated to e-commerce businesses running in North Africa, South Asia, and the various subregions in the Middle East. Two state-owned enterprises, namely the Dubai Airport and the real estate company Wasl, take care of the facility itself. It offers a host of facilities and benefits that make it among the most attractive free zones for foreign direct investment. 

The zone consists of state-of-the-art offices, large warehouses, and other facilities that make it ideal for digital businesses of all kinds. Furthermore, it offers various facilities that help businesses register to run in the UAE. This makes it extremely beneficial for single-owner businesses that often need a lot more external support to get their establishments up and running. 

Company Setups 

One of the key facilities that the DCC offers is that it helps businesses get registered to run in the UAE. Furthermore, the E-Trader Licence, which was introduced in 2017, has helped single-owner businesses set up facilities to sell products digitally. Companies running in the DCC can operate under three main categories. These include: 

Public Limited Liability Company 

This is the ideal category for businesses that want to list themselves on the securities market. Further, there are no limits on the number of shareholders such companies can have. 

Free Zone Company 

This is a company in which the number of shareholders is limited to a total of 50, and it applies to both businesses with single or multiple owners. 

Free Zone Entity (Branches) 

This type of enterprise runs as a branch of a company and doesn’t require any share capital.

What Are The Types Of Licences?

What Are The Types Of Licences

Other than the three different types of company setups, DCC also offers six different types of licences. These include:  

    • General Licence – This allows entrepreneurs and businesses to engage in general activities such as trading, import, distribution, and storage. 
    • Service Licence – This is a type of license provided for online services or service-centric businesses such as It education, training, marketing consulting, and more. 
    • Trade Licence – This type of licence allows an entrepreneur to engage in trade-related activities such as import, export, storage, and distribution of specific goods and services. 
    • E-commerce Licence – This allows businesses to sell products online via websites or social media. The DCC also offers logistic support for the same. 
    • Dual Licence with DED – This gives any organization registered with the DCC the freedom to run a business without having to rent an office on the mainland. 
    • Industrial Licence – Lastly, the Industrial Licence allows businesses to engage in the production and assembly of goods. 

Major Clusters in the DCC 

Dubai CommerCity is divided into three major clusters to help facilitate the smooth running of various businesses out of a single location. These are detailed below:

Business Cluster

The DCC’s Business Cluster comprises 12 main office buildings that are run in compliance with the LEED Program (Leadership in Energy and Environmental Design). These office buildings cover a total area of about 2,40,000 sq. mt. and make extensive use of renewable energy and recyclable water wherever possible. 

The cluster offers a business setup with various rental options, several of which can also be modified based on individual requirements. The offices also allow provisions for businesses to scale with time, thereby offering immense flexibility. 

Logistics Cluster

The second cluster is that which takes care of all the logistics for the businesses in the zone, offering them warehousing and storage facilities via a pay-as-you-go pricing model. It consists of 105 logistics units that cover a built-up area of about 54,000 sq. mt. They come in various sizes, thus offering businesses of all sizes the benefit of being able to choose a facility that suits their needs best. Some of the key services on offer include: 

      • Order management systems
      • Customs clearance processes, and 
      • Last-mile delivery services

Social Cluster

The third and final cluster is the Social Cluster which lies at the heart of the DCC. It houses open halls, restaurants, galleries, exhibition halls, and more. It offers those working in the DCC the ability to take a break from their work and unwind for a while, all without having to leave the premises. The exhibition halls also offer businesses a space to exhibit their products to the general public, offering them a convenient way of advertising their products and services. 

Services on Offer  

Some of the key services on offer at the DCC include are mentioned below. 

Warehousing and Last Mile Delivery  

The DCC has two main kinds of fulfilment centres that include multi-client and dedicated. They offer businesses the benefit of storage and movement solutions and other services such as order management, last-mile delivery, collection and packaging, delivery tracking, and more. 

E-Commerce Consulting Services

The DCC also consults businesses on how to sell their products via an e-commerce platform best, be it social media or a dedicated website. As a result, it aids these businesses in their growth, thereby ensuring that they remain profitable. 

These consultations are particularly beneficial to global businesses that aim to expand into the Middle East. 

E-Commerce Platform Services

The DCC site provides online businesses with all the tools and supports they need to set up and run their businesses smoothly, including support on how to apply for an e-commerce licence in Dubai. It offers support in various aspects, such as web store development, online branding, UX/UI development, and payment gateways. 

Customs Consulting

The DCC’s Customs Consulting helps businesses with cross-border e-commerce, thereby allowing them to navigate the various regulations that come with such a business. All this support is provided by the Customs Consulting Service via their recommendations at every step of the process. 

Where is Dubai CommerCity Located? 

Dubai CommerCity is located in Umm Ramool, Dubai,  and is strategically located near Dubai International Airport. The aim is to ensure seamless e-commerce fulfilment in the region. 

In a Nutshell

Dubai CommerCity is one of the many free trade zones in the emirate of Dubai and is a key ingredient in its influx of global businesses. It caters to businesses of all kinds and sizes, offers several different types of licences, and offers businesses the support they need to set up shop. Consisting of three different clusters, the DCC takes care of all aspects of a business’ operations, from proving state-of-the-art office spaces to logistics and warehousing.

It also offers e-commerce businesses the resources they need to get their setups up and running while offering support via facilities like storage, packaging and collection, and last-mile delivery, among others. All in all, the DCC is among the key free trade zones for businesses looking to expand into the Middle East, along with the neighbouring regions of North Africa or South Asia. It offers everything a business would need to manage all its operations out of a singular location.

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Frequently Asked Questions(FAQs)

Does Dubai CommerCity allow for multiple leases?

Yes, the DCC allows for a business setup in Dubai to have several leases under a similar permit.

What types of licences does the DCC offer?

The DCC offers several different types of licences, including General, Service, Trade, E-commerce, Industrial, and a Dual Licence with DED.

What is e-commerce enablement?

E-commerce enablement refers to the DCC's facilities that help digital and e-commerce businesses to grow their resources in one location. It enables this with facilities such as storage, packaging, collection, last-mile delivery, and more.

What does it cost to set up a business in Dubai CommerCity?

The DCC's pricing packages are flexible and can depend on the business' nature and size. Further, businesses can also opt for a pay-as-you-go model.

Can I buy an office in DCC?

No, the DCC only allows you to lease an office.

Do I have to pay Income or Corporate Tax to operate a business at DCC?

Businesses that operate in the DCC are exempt from paying Income or Corporate Tax.

Will I need to partner with a UAE company for a setup in Dubai CommerCity?

No, you won't have to partner with a UAE company as the DCC allows for full foreign ownership.

Which are the best business setup consultants in Dubai?

The DCC offers some of the best business setup consultants in Dubai. They help entrepreneurs set up businesses and consult with customs issues for e-commerce businesses.

Krittika Barua
Krittika Barua Organized, vocal and everything in between. Krittika is an editor at Square Yards, passionate about weaving words with simplicity. She’s a dog lover obsessed with Microsoft Excel. Donuts cheer her up.
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