Experts from Dubai CommerCity (DCC), the first dedicated e-commerce free zone in the Middle East, Africa and South Asia (MEASA) joined retailers, leaders and industry specialists in the e-commerce industry at Seamless Middle East 2020. They discussed market disruptors, top industry trends and technologies on which the future marketplace will operate.
The event highlighted the e-commerce trends that the pandemic has affected and the region-wide progress that is being made to address the critical issues that have surfaced throughout the past few months. Built on 20 years of history, Seamless 2020 brought together the regional payments, banking and fintech ecosystem to establish connections from all over the Middle East. The event also showcased a wide array of curated content from those innovating and disrupting the commerce industry.
Representatives from Dubai CommerCity discussed how post pandemic consumer behavior is redefining the retail landscape and the requirements for setting up and expanding e-commerce business in the Middle East. The spokespeople also showcased how countries in the region are understanding and applying the diverse range of technology platforms at their disposal, accommodating greater collaboration across geographies and developing e-commerce initiatives and infrastructure, all while operating with preemptive positioning in mind.
Amna Lootah, Board Member, Dubai CommerCity said: “In recent years, we have witnessed e-commerce offer unprecedented opportunities to businesses across the region. Now more than ever, many companies require the process of initiating and doing trade to be a lot easier, faster, and more accessible. Since then, the role of e-commerce has expanded and offered several solutions as region-wide progress is being deployed to address the critical issues that have surfaced throughout the past few months.
“Our continued participation in Seamless 2020 – one of the leading events in the e-commerce space – is a testament to our commitment towards providing companies expanding into the e-commerce vertical the suitable tailor-made e-commerce offerings to allow them to enhance and grow their operations. This year, the technological infrastructure provided by Seamless has allowed Dubai CommerCity to effectively communicate solutions, ideas and moments of inspiration for the e-commerce sector and permitted us to operate with flexibility, scalability and security,” added Lootah.
“Within Dubai, progress is being made to address the important issues that we have all faced throughout the past few months. Dubai’s existing infrastructure has ensured the emirate’s readiness to cope with economic and societal implications of the pandemic. Dubai is also continually deploying initiatives to ensure foreign investments remains a top priority even after the pandemic subsides.”
During the event, deVere Forster, Chief Operating Officer, Dubai CommerCity, gave a presentation on the evolution and future of e-commerce in the region. Forster highlighted that the region has witnessed exponential growth with the market size growing at the rate of 32% in the GCC region over the past five years, according to Statista.
He also discussed the evolving consumer behavior that has surfaced due to the pandemic and its implications on the retail landscape. Forster highlighted that for a large section of the population, COVID-19 provided an ideal opportunity to re-evaluate their current lifestyle choices and make adjustments. As such, there has been an increased preference of online shopping and buy online and pick up (BOPIS) with total sales of e-grocery doubling in the UAE, according to McKinsey.
Forster explained that consumers are expected to make more online purchases even post COVID-19, which has led business to evolve and meet consumer demands. Some changes discussed by Forster included physical retailers and malls that are building omni-channel and digital experiences in their business models.
To meet the evolving customer demands, Seamless 2020 showcased several trends in the e-commerce sector including the region’s expertise in digital innovation from alternative payments and digital identity to e-logistics, cloud infrastructure and e-commerce platforms.
Entering an international market was also a key topic of discussion during the event. The event showcased the growing requirement and need for cross-border collaborations, pointing to lower marketing costs and pricing control as some of the benefits. Technological developments, online marketplaces and diversity in choice are all drivers for cross-border e-commerce sales.
According to Forster, there have been local strides to look beyond borders with Dubai Customs launching its Cross Border e-Commerce platform to help the emirate become a global hub for e-commerce and encourage e-commerce companies to set up their businesses in Dubai. The initiative is expected to contribute AED 12 billion to the emirate’s GDP by 2023.
The e-commerce market in the GCC and MEASA region inhibits exponential growth opportunities as the e- 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%. DCC will play a pivotal role in the development of the e-commerce sector and will provide growth opportunities for global and regional manufacturers, as well as distributors and global e-retailers.
Dubai CommerCity is the first and only free zone dedicated to the growing e-commerce market in the Middle East and North Africa (MENA) region. It is an investment of AED 3.2 billion spread over an area of approximately 2.1 million square feet. It provides a unique e-commerce ecosystem to global and regional brands to help them set up and operate their e-commerce business in the MENA region.
