May 11, 2021

Dubai Customs and JAFZA sign e-commerce cooperation agreement

Dubai – 10 March 2021: Within their efforts to boost the role of Dubai and the UAE e-commerce on the global stage, Dubai Customs signed an agreement with Jebel Ali Free Zone (JAFZA) that enables JAFZA enjoy all the services and benefits Dubai Customs provides through its cross border e-commerce platform.

The innovative platform utilizes block chain technology to integrate and automate operations between Customs, Free Zones, logistics, and courier companies. It is the first of its kind in the region, and it aims to help the emirate become a global hub for e-commerce, and encourage e-commerce companies set their businesses in Dubai. This follows the leadership’s vision of increasing Dubai based companies’ local and regional distribution share of e-commerce trade in the emirate to AED24 billion by 2022 through decreasing cost of e-commerce operations by 20%. E-commerce is expected to contribute AED12 billion to the emirate’s GDP by 2023.

Abdullah Mohammed Al Khaja, Executive Director of Clients Management Division, Dubai Customs and Abdulla bin Damithan, Chief Commercial Officer, DP World, UAE Region signed the agreement, which will see Dubai Customs’ highly experienced employees provide the e-commerce services to JAFZA to ensure best performance in enhancing Dubai external trade.

“Dubai Customs looks forward to developing the local competencies in e-commerce sector in support of the advancing e-commerce activity in Dubai and its success in attracting regional and global e-commerce platforms into the emirate,” said Al Khaja. “Number of e-commerce parcels has increased in the first half of 2020 to 4.3 million marking a staggering 150% growth compared to the corresponding period in 2019. We are enthusiastic to keep abreast with this growth and to help customers easily access the world’s markets in support of Dubai’s external trade and its role as a global hub for trade and tourism.”

Al Khaja added; “Signing the agreement with JAFZA will help increase number of beneficiaries and will ensure best e-commerce services delivered to JAFZA companies. Free Zone trade in Dubai touched AED227 billion in the first half of 2020, which makes 41% of the total trade value.”

Commenting on the same, Bin Damithan said; “E-commerce and retail is a promising sectors at JAFZA. The sector grew 10.6%in the first half of 2020 making AED37.6 billion in revenues. There is also 300% increase in demand on e-commerce services. To this end, we contact companies registered with us to help them turn their business online.”

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