A massive new e-commerce hub in the heart of Dubai South’s Logistics District is now 20 percent operational as the emirate eyes AED12 billion ($3.2 billion) online retail boost by 2023.

Dubai South announced that work is progressing on phase one of its e-commerce zone EZDubai, which was launched in January 2019 by Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai.

It is a key component in Dubai's ambition to consolidate its position as a hub for global e-commerce.

The announcement comes as global e-commerce has come to the fore during the coronavirus pandemic when more shoppers have gone online as bricks and mortar shops were forced to close.

Located next to Al Maktoum International Airport with a direct connection to the Jebel Ali Port, the 920,000 purpose-built hub plans to attract the world’s leading e-commerce companies.

It supports the Dubai e-commerce strategy, which was launched last year by Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and chairman of the Dubai Executive Council, that aims to attract more foreign direct investments in the e-commerce sector.

Mohsen Ahmad, CEO of the Logistics District at Dubai South, said: "We are delighted to see that EZDubai is growing and becoming operational in such a short period. The establishment of EZDubai has bridged the gap in e-commerce, not only in Dubai but the GCC as well."

He added that e-commerce is set to contribute AED12 billion to Dubai’s GDP by 2023.

In its first phase of operations, EZDubai spans a total area of 340,000 square metres, 68,000 of which is operational and an additional 91,000 is under development.

The e-commerce zone constitutes e-fulfilment centres, infrastructure for repair and return centres, supply centres, and business blocks as part of the zone’s master plan.

Companies currently operating from EZDubai include DHL Express, Aramex, Amazon, Fetchr, Yunda, First cry, and Triboo.Once completed, the new e-commerce hub will have six dedicated areas providing a total in excess of 550,000 sq m of leasable area.