Dubai CommerCity and Hellmann Worldwide Logistics sign strategic agreement to support future growth of e-commerce.
Dubai CommerCity, the region's first dedicated e-commerce free zone has signed an agreement with Hellmann Worldwide Logistics to manage and operate a shared, multi-client warehouse within the logistics cluster of the free zone. The partnership was announced during Seamless Middle East 2020 – one of the leading events in the e-commerce space.
Dubai CommerCity is set to elevate Dubai’s position as a leading hub for international e-commerce, supporting economic diversification and smart transformation. It is a AED 3.2 billion (USD 0,9 billion) project covering an area of 2.1 million square feet in Umm Ramool, right next to DXB International airport, the proximity to the center of Dubai and airport offers fantastic speed to the consumer.
Hellmann will provide end-to-end warehousing including services like order management systems and streamlined customs clearance processes. As part of end-to-end logistics services, Hellmann will also offer last mile delivery services, through its last mile partner DHL Express, from the bonded warehouse directly to the consumer. The multi-client warehousing customers will be serviced by a dedicated team from Hellmann who will manage consumer and shipment queries including tracking and tracing of deliveries. The clients will be supported with reporting dashboards based on their individual requirements. Customers at Dubai CommerCity will be able to benefit from pre-negotiated, market competitive warehousing and last mile conditions along with economical delivery lead times and coverage. Customers can also avail unique and exclusive pay-as-you-go storage options which is highly cost efficient and which allows flexibility to scale their operations in line with demand.
Amna Lootah, Assistant Director General, DAFZA said:
“Collaboration and partnerships will continue to be critical for the future growth of e-commerce and for economic recovery across the globe. This year has highlighted the vital role that e-commerce and logistics play in the global economy. These sectors will be crucial for enabling other industries to prosper and for supply chain to be strengthened. Through this partnership with Hellmann and DHL Express, we will support Dubai CommerCity’s customers in their journey towards development and growth in the e-commerce industry. This will have an important role to play in the diversification of the UAE economy and future sustainable economic development.
The e-commerce sector continues to drive innovation, digitalization and strategic alliances. The objective of this agreement with Hellmann is to offer businesses end to end high level, streamlined logistics services including inbound and outbound support in the MEASA, as well as in other key markets across the world.”
Madhav Kurup, Regional CEO Middle East and South Asia, of Hellmann Worldwide Logistics commented,
"We are excited at this opportunity to create a unique operating model with Dubai CommerCity that will be the first of its kind in the Middle East. Dubai CommerCity’s strategic partnership with such a globally renowned service provider as Hellman Worldwide Logistics and our last mile partner, DHL Express, will enhance Dubai CommerCity’s service scope as a specialized free zone compared to the traditional infrastructure provider model.”
Geoff Walsh, UAE Country Manager at DHL Express, said:
“Our partnership with Dubai CommerCity and Hellmann demonstrates DHL’s continued commitment to delivering value to our e-commerce customers, as they are currently operating in a challenging and volatile business environment. We are continuously looking to provide logistical support to any new initiatives that will help the economy and SMEs expand in the region and internationally. Hellmann’s end to end warehousing solutions will help our customers capture business opportunities that they may have otherwise lost.”
The e-commerce retail market in the Middle East & Africa is expected to grow by 20% to reach USD 26 billion in 2022, which outpaces the global growth of 13%. The GCC is also expected to contribute 43% of MEA’s e-commerce retail market by 2022 ,”
Dubai CommerCity will provide advanced opportunities for global and regional manufacturers, as well as distributors and global e-tailers. It will facilitate a business ecosystem for companies in the e-commerce industry such as, web developers, photoshoot studios, call center service providers and others. Divided into three main clusters - business, logistics and social, Dubai CommerCity will be a home for innovation, new technology, plug & play ecommerce ecosystem, state of the art services and modern infrastructure.
