UAE Dubai Customs brings on Jebel Ali Free zone to ecommerce blockchain platform

UAE Dubai Customs signed an agreement with Jebel Ali Free Zone (JAFZA) that enables JAFZA to enjoy all the services and benefits Dubai Customs provides through its cross border e-commerce platform built on blockchain technology.

The innovative platform utilises blockchain 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 aims to help the emirate become a global hub for e-commerce and encourage e-commerce companies to 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 by decreasing the cost of e-commerce operations by 20 percent. 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 e-commerce services to JAFZA to ensure the best performance in enhancing Dubai’s external trade.

"Dubai Customs looks forward to developing the local competencies in the 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," Al Khaja said.

"The number of e-commerce parcels has increased in the first half of 2020 to 4.3 million marking a staggering 150 percent growth compared to the corresponding period in 2019. We are eager 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 the number of beneficiaries and will ensure the delivery of the best e-commerce services to JAFZA companies. Free Zone trade in Dubai touched AED227 billion in the first half of 2020, which makes 41 percent of the total trade value."

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