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Dubai’s new e-commerce strategy to attract FDI

Strategic plan to strengthen the city’s status as a global logistics platform


Dubai has launched an e-commerce strategy that aims to strengthen the city's status as a global logistics platform and accelerate online commerce growth.

The strategy primarily aims at increasing the contribution of e-commerce to USD 3.26 billion in the local economy by 2023, and increase regional and global share of e-commerce companies operating in Dubai to USD 6.53 billion by 2020.

These goals will be achieved by reducing the total cost of e-commerce operations by 20 percent — including the costs of returned goods, storage, customs duties and VAT on transportation.

The key goal is to drive growth and support economic diversification policies, by motivating e-commerce companies to establish e-logistics distribution centers in Dubai and encouraging cloud computing service providers and leading companies to set up data centers in Dubai.

Creating a stimulating environment conducive to talent and providing a leading model for accelerating the growth of e-commerce are also among the goals set to be met.

The plan seeks to develop an integrated system to draw foreign direct investment (FDI) into the e-commerce sector, to ensure the sector’s contribution to increasing FDI flows to Dubai, which has recorded strong growth in the first half of 2019, with FDI projects worth USD 12.68 billion, a growth of 135 percent compared to the same period in 2018.

Dubai is among the fastest growing e-commerce markets in the Middle East and North Africa, reaping the fruits of policies, strategic plans, and smart government initiatives aimed at digital transformation.

The strategy is prepared by the Dubai Free Zones Council (DFZC) in collaboration with Dubai Chamber of Commerce and Industry, Dubai Economy, and Dubai Customs.


Dubai FDI