Dubai Crown Prince launches plan to increase foreign direct investment in e-commerce
Shaikh Hamdan Bin Mohammad Bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of Dubai Executive Council, has launched an e-commerce strategy that aims to increase foreign direct investment in Dubai’s e-com sector.
Shaikh Hamdan wants to increase the contribution of e-commerce to the economy to AED12 billion by 2023, and increase the regional and global share of e-commerce companies operating in Dubai to AED24 billion by 2020.
To do this, the plan seeks to reduce the total cost of e-commerce operations by 20 per cent — including the costs of returned goods, storage, customs duties and VAT on transportation.
“Dubai is among the fastest growing e-commerce markets in the Middle East and North Africa, bearing the fruits of adopting the best policies, strategic plans and smart government initiatives aiming at digital transformation,” said Shaikh Hamdan. “This is in line with the directives of His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.”
The strategy, prepared by the Dubai Free Zones Council (DFZC), in collaboration with Dubai Chamber of Commerce and Industry, Dubai Economy and Dubai Customs, aims to cement Dubai’s position as a global e-commerce platform.
“Dubai’s strategic plans have succeeded in increasing investor confidence in the sector and opportunities for its growth. The new e-commerce strategy builds on this extraordinary success achieved by the emirate,” Shaikh Hamdan added.
The key goal is to drive growth and support economic diversification policies, by motivating e-commerce companies to establish e-logistics distribution centres in Dubai and encouraging cloud computing service providers and leading companies to set up data centres in Dubai.
The plan seeks to build on e-com’s strong growth in the first half of 2019, with FDI projects worth AED46.6 billion recorded, a growth of 135 per cent compared to the same period last year.
The online commerce strategy was launched during the council’s meeting held in the presence of Shaikh Maktoum Bin Mohammad Bin Rashid Al Maktoum, Deputy Ruler of Dubai and First Deputy Chairman of the Executive Council.