Dubai: The global pandemic, combined with the accelerated adoption of digital technologies, has driven significant shifts in B2B e-commerce and the retail sector in Dubai, leading to the city reinforcing its position as a leading regional and global trading and commercial hub.

The shifts are exemplified by a new trading trend that has emerged among companies in the Dubai Integrated Economic Zones (DIEZ) as part of which businesses are partnering with third-party logistics providers to streamline their supply chain processes and sell their products to customers. A new business-to-business-to-customer (B2B2C) model is seeing entrepreneurs bulk buying products and re-selling them across different direct-to-consumer channels, giving them generous profit margins and ease of operations.

The new trends have been accelerated by proactive initiatives implemented by Dubai and the UAE to promote the rapid adoption of digital solutions. Furthermore, with newly updated business laws and regulations, it is now easier for businesses to conduct e-commerce.

New studies reveal how unprecedented challenges brought by the global pandemic together with rapid digitization have driven the growth of business-to-business (B2B) e-commerce. According to the studies, 82 percent of companies intend to increase the use of B2B e-commerce and 86 percent of businesses feel technology is the sector that will assume greater significance in the future, followed by the e-commerce sector at 84 percent.

Dr. Mohammed Al Zarooni, Executive Chairman of DIEZ, said: “Through its three free zones, the DIEZ Authority has been working to develop a sustainable economic system that boosts the economic growth of the emirate and strengthens its pioneering position in adopting solutions and launching digital platforms that enhance the performance of small and medium-sized businesses.”

“The e-commerce sector and B2B trade are among the most prominent focus areas within the authority’s strategy in the next phase, given the great economic and investment capabilities and opportunities that it provides as well as the increased adoption of the digital-first mentality by companies that aspire to expand in this field in the future,” Dr. Zarooni added.

DIEZ contributes to 11 percent of Dubai’s overall trade volume and has witnessed an 8.3 percent growth in new sales revenues since the beginning of 2022, as well as a 24 percent rise in the leased areas compared to the same period in 2021. DIEZ also saw an 88.4 percent increase in the number of registered companies compared to the same period in 2020, with a 23.5 percent increase in multinational company registrations.

DIEZ, which is home to 5,000 companies, plays a key role in the UAE’s efforts to promote economic diversification, contributing 5 percent to Dubai’s GDP.

Source: B2B2C: New e-commerce model takes root in Dubai | Business – Gulf News